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Old 08-14-2019, 10:15 AM
 
11,864 posts, read 2,930,979 times
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How would it affect the price of gold?

How would it affect the stock market?

How would it affect our economy in other ways?
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Old 08-14-2019, 10:47 AM
 
8,467 posts, read 9,212,535 times
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Quote:
Originally Posted by PilgrimsProgress View Post
How would it affect the price of gold?

How would it affect the stock market?

How would it affect our economy in other ways?
Chaos.
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Old 08-14-2019, 10:48 AM
 
Location: Tyler, TX
714 posts, read 641,122 times
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I like the idea, but I’m not sure it’s practical. Fiat currency is almost as scary as a goods-back currency conversion.
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Old 08-14-2019, 10:55 AM
 
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The economy as we know it would be no more. You would have massive deflation, depression and likely eventually civil unrest. It would be a good time to own gold.

The entire idea of going back on the gold standard is foolish. People saw what happens and can educate themselves on the 20's and 30's and what the gold standard did then handcuffing the government and recovery. The ramifications now would be catastrophic.

The only way we ever see a return to a metal backed currency would be to float a new one and people didn't want to switch. We are addicted to Fiat now, not likely to happen.
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Old 08-14-2019, 01:44 PM
 
Location: Ohio
20,203 posts, read 14,389,356 times
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Quote:
Originally Posted by PilgrimsProgress View Post
How would it affect the price of gold?
The price of gold would drop like a rock.

Like a great many people, you're ignorant of the fact that metals used as monetary standards are heavily regulated.

For more than a century, the price of gold never changed: it was ~$18.50/ounce.

Quote:
Originally Posted by PilgrimsProgress View Post
How would it affect the stock market?
It wouldn't, and who cares if it does?

Only 3% of all US companies are publicly-traded corporations, meaning the other 97% of US companies do not sell stocks.

Those 3% that are publicly-traded corporations only employ about 5.6% of the total work-force.

Quote:
Originally Posted by PilgrimsProgress View Post
How would it affect our economy in other ways?
Not much really. It would coerce the government into running a balanced budget, or severely curtail spending to a points in excess of GDP.

That would likely result in social welfare programs being cut, but the States would go back to administering those programs like they did in the first place before FDR scarfed them up in a bid for power control.
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Old 08-14-2019, 01:59 PM
 
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There is no putting that bunny back in the box.... not enough gold in the world to cover out debt!
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Old 08-14-2019, 02:27 PM
 
11,864 posts, read 2,930,979 times
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Quote:
Originally Posted by Mircea View Post
The price of gold would drop like a rock.

Only 3% of all US companies are publicly-traded corporations, meaning the other 97% of US companies do not sell stocks. Those 3% that are publicly-traded corporations only employ about 5.6% of the total work-force.
.
Most pension and retirement funds are heavily invested in stocks.
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Old 08-14-2019, 02:32 PM
 
Location: NC
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It can't since there is not enough gold to support the entire monetary system. A good part of the value of the dollar is based on the integrity of the US government.
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Old 08-14-2019, 04:21 PM
 
4,014 posts, read 1,578,148 times
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How would it affect the price of gold?
increase.

How would it affect the stock market?
decrease.

How would it affect our economy in other ways?
collapse.
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Old 08-15-2019, 07:30 AM
 
2,217 posts, read 649,762 times
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We can't go back to the Gold standard because it would require our existing monetary policy to be based on REAL STORE OF VALUE and you'd have to CTRL + ALT + DELETE practically 90% of the derivative products available on the market today. We're over leveraged federally by 100x so not sure how we could reconcile that being you can only lend out money based on even a 10x multiplier of the value of your gold reserves. The math just would not work.
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