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Old 01-21-2009, 09:33 AM
 
Location: Charlotte, NC
2,193 posts, read 4,612,916 times
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Since there is a limit to gold, then if we run out, then what? The economy will come to a screeching halt. How would we expand if there's no more gold?

Also, do you guys want to go back to carrying around bags of gold? I don't know about you, but I like the convenience of credit cards and online banking.
There's a large risk with gold too. Somebody can just put a gun to your face and steal your bag of gold.
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Old 01-21-2009, 09:37 AM
 
Location: Heartland Florida
9,324 posts, read 24,252,214 times
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Thieves also steal fed notes, so what's the problem? Gold can be traded via certificates or the real stuff. There is something called a bank that can issue credit even if it is backed by gold. In addition to gold, silver, copper or any metal should be used. Commodity money is the best because it transfers wealth to people who produce while fiat money gravitiates toward the non-productive sector. Inflation steals from wage earners.
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Old 01-21-2009, 09:39 AM
 
Location: State of Superior
8,632 posts, read 14,225,904 times
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On the road , a beginning ,to return to the Gold Standard. A very good idea , the time has come........again.

We will have hyperinflation , its coming , no way out. Gold and silver , are the only true money.
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Old 01-21-2009, 10:01 AM
 
Location: Londonderry, NH
41,478 posts, read 52,752,585 times
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Money demonitated in something, anything is better than money denominated in some computer's memory.
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Old 01-21-2009, 11:40 AM
 
18,324 posts, read 16,262,227 times
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Quote:
Originally Posted by GregW View Post
Money demonitated in something, anything is better than money denominated in some computer's memory.

Hi Greg,

How about just denominating it( and removing the debt nature of it). If we had a web site showing the money supply and an index of commodity prices along with it made for a 5th grade audience that would work better than some of the fractional reserve gold scams I have seen. We are not going to ever use gold again. All it will ever be is "gold backed" which is nothing but computer blips and more rolls of tissue. If anything gold plays a better roll as a competitor to paper currency. It is an excellent indicator of currency manipulation and sentiment as it is now.
I still cannot for the life of me understand why people are outraged that our money has inflated to 10 trillion in public money and not a peep about the banks who inflated it by 45 trillion. Oh wait I think I know why....
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Old 01-21-2009, 02:40 PM
 
3,460 posts, read 5,067,802 times
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I'd still like to see money denominated in units of power or energy....
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Old 01-21-2009, 04:02 PM
 
18,324 posts, read 16,262,227 times
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Originally Posted by sterlinggirl View Post
I'd still like to see money denominated in units of power or energy....

Hi sterlinggirl,

The problem is when you monetize something you end up producing it and using it for something other than is use a a commodity. Thus its still artificially inflated. We would need energy set aside as a monetary base. Tally sticks were the most successful currency in history. They were backed by what all currency is backed by when it boils down to it. Enforcement.
Basically there is no dumb fail safe system of yellow metals or black goo that can replace an alert, educated and skeptical society. If gold is protection how was it the Roosevelt confiscated it? What currency is safe from barbarians that just happen to be elected into government?

My system would be simple. A direct treasury note system (no Fed) backed by the taxing power of the government. It would be full reserve, no money making inflationary bubble fluff. All money printed would be on display everywhere. Inflation or deflation would be controlled by taxation.

All dollars in anyone's possession would also be public. If you have million dollars, everyone knows. Thats the privilege of using the legal tender. If you don't want to expose your wealth then buy assets, real estate , oil, gold, tin plastic what ever. However all currency will be public knowledge. It meant to be circulated for goods and services not hoarded, cornered or manipulated.

If you can't keep those you put in power from tampering with such a transparent system then what makes anyone think they can't just do whatever the heck they want?
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Old 01-22-2009, 12:01 AM
 
3,853 posts, read 11,846,987 times
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Quote:
Originally Posted by ViewFromThePeak View Post
The Feds will shut this down quickly if it passes.

It is inevitable for gold to go black market, IMO. Establish your contacts now so you don't have to backdoor barter with strangers.
no kidding and if does pass the feds will have already had huge control on the gold markets.

probably will get shot down though. Fiat is a lot more lucrative.
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Old 01-22-2009, 12:09 AM
 
3,853 posts, read 11,846,987 times
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Quote:
Originally Posted by sheenie2000 View Post
Since there is a limit to gold, then if we run out, then what? The economy will come to a screeching halt. How would we expand if there's no more gold?

Also, do you guys want to go back to carrying around bags of gold? I don't know about you, but I like the convenience of credit cards and online banking.
There's a large risk with gold too. Somebody can just put a gun to your face and steal your bag of gold.
I don't even know where to start. The free market will adjust the price of gold. If there is a shortage of gold the price will go up. In reality, what we would use is multiple metals. You would have silver, gold, platnium, paladium and maybe copper. That is how the money supply would always stay liquid. The value of those metals would always fluctuate just like the USD does today.

We wouldn't use bags of gold. Banks would still exist. HOWEVER people keeping their entire savings in the bank would not exist. What we would have is banks that issue, "notes or credits" similar to what we have for fiat. However it would be redeemable for gold. This is how it worked when we were on the gold standard. Those notes would only be used for business as they could lose their value at any time. The US government could have a strategic gold supply or silver supply to ensure faith. However the main point here is that everyone wouldn't keep their life savings in fiat, just use it for business. Credit cards, debit cards could still work.

Here is what our currency looked like before the fed. They still used these notes after the fed because they were still backed by gold. However by the 1970s the fed said they were not going to pay gold anymore (ie. they closed the gold window).

Also even paper money has its security flaws. You should look at how high the rate of identity theft is. In the billions.



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Old 01-22-2009, 01:40 PM
 
Location: where you sip the tea of the breasts of the spinsters of Utica
8,299 posts, read 12,532,100 times
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Quote:
Provides that after December 31, 2009, the state and political subdivisions may not compel or require any person to recognize, receive, pay out, deliver, promise to pay, or otherwise use or employ anything but gold and silver coin (in that form or in the form of a designated electronic gold currency) as media of exchange with respect to certain payments. Provides that after December 31, 2009, a person receiving certain payments from the state or a political subdivision has the option of accepting payment in either legal tender of the United States or in electronic gold currency.
There's a tax advantage for a small business to pay employees in gold coins rather than in FRNs, so this might be meant as a way to save small businesses from going under in this economy.

Each one ounce American Eagle has a face value of $50, but is worth about $850 at this time.

An employer can pay his employee a salary of $50 per week, I suppose, and the employee would be legally getting only $50 but would be able to trade it in for $850 - I'm not sure what advantages an employer would have, because I don't know what taxes businesse have to pay. Income taxes for the employees would be negligable or absent. This has actually held up in federal court, but few know about it.
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