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The first step should be to pay off our debt in gold and silver. We can then engage in radically changing the system.
Which would also require a balanced budget amendment with everything on budget based on income to the treasury.
You'll never get politicians to be responsible with the taxpayer money without that. They will always say they just need more tax money, never that they need to cut all their spending.
I think that is just in a politician's nature.
Gold is a commodity and its price fluctuates constantly. It is high now but could crash tomorrow. William Jennings Bryan got this one right a century ago.
Maybe the value of other things fluctuate relative to the value of gold.
Make Gold and Silver legal tender and a competeting currency against the US FED dollar.
Let people and states use gold and silver as currency and paying its debit as per the constitution.
Let all GOLD we have back the US dollar and what we dont have in gold we will use the FED run dollar.
So dollars backed by gold can be turned in for notes of gold and silver the way it use to be even up until 1971.
Which would also require a balanced budget amendment with everything on budget based on income to the treasury.
I am for a balanced budget amendment with clear targets on revenues and spending, not just one or the other. The only problem is, how do we go about enforcing it with extremists pushing for ideologies over realities?
But, what has that got to do with paying off debt with gold and silver?
But isn't a gold standard (a gold-backed currency) set at a currency value equal to a specific weight of gold?
A contraction of the circulating paper money supply would have to occur similar to what happened between 1875-1879 when the US went back to a gold standard from the greenback era.
The U.S went off the gold standard back in 1861 until the Grant Administration in 1875 announced they would resume redemption of greenbacks for Gold beginning in 1879. At the time the greenbacks were inflated to the point that they were trading at a discounted rate of 17% against the pre-Civil War gold dollar.
After specie resumption occurred successfully in 1879, the gold premium to greenbacks fell to par and the appreciated greenback promoted confidence in the gold-backed dollar.
A return to a gold standard would be far from an overnight change. An overnight change I agree would be disastrous.
Why not gold?
Fort Knox Depository allegedly holds 147.4 million ounces.
USA Pop. 305 million.
Less than 1/2 ounce per capita.
Not enough.
World wide supply (est) 5.3 billion ounces
World pop.6.7 billion people
Less than 1 ounce per capita
Not enough.
What about silver?
Unlike gold, silver is not stockpiled and is also of insufficient quantity to function as a medium of exchange on a national or international level.
Why not gold?
Fort Knox Depository allegedly holds 147.4 million ounces.
USA Pop. 305 million.
Less than 1/2 ounce per capita.
Not enough.
World wide supply (est) 5.3 billion ounces
World pop.6.7 billion people
Less than 1 ounce per capita
Not enough.
What about silver?
Unlike gold, silver is not stockpiled and is also of insufficient quantity to function as a medium of exchange on a national or international level.
Assuming that a) there would be an equal distribution and b) that every country would go on a gold standard is faulty.
Your other assumption about there not being enough gold in Fort Knox to support to US economy is also faulty because it ignores gold that is owned privately. It also ignores the fact that prices would decided by the market which means it would take less money to buy more.
Assuming that a) there would be an equal distribution and b) that every country would go on a gold standard is faulty.
Your other assumption about there not being enough gold in Fort Knox to support to US economy is also faulty because it ignores gold that is owned privately. It also ignores the fact that prices would decided by the market which means it would take less money to buy more.
I'm assuming that promoters of gold standard have done the math, and aren't pushing for it without understanding the potential aftermath. If they have, how much gold are we talking about?
Why not gold?
Fort Knox Depository allegedly holds 147.4 million ounces.
USA Pop. 305 million.
Less than 1/2 ounce per capita.
Not enough.
World wide supply (est) 5.3 billion ounces
World pop.6.7 billion people
Less than 1 ounce per capita
Not enough.
What about silver?
Unlike gold, silver is not stockpiled and is also of insufficient quantity to function as a medium of exchange on a national or international level.
Simply make each U.S. dollar worth .000001 ounces of gold and allow the exchange rate to float on the open market.
Anyone holding a dollar can redeem it for .000001 in gold. That would force banks to severely limit loans. Only the soundest business plans and credit seekers would get funded.
We would squeeze bad investments out of the financial system and everyone would be forced to be adults with their money and finally use their brains.
Congress' credit card would be shredded and Americans would finally begin to be free of the Federal Reserve.
Heck, maybe America would return to making things again.
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