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Old 04-27-2011, 04:48 PM
 
19,170 posts, read 10,888,506 times
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Because I cannot find any way to see how it would work in a modern HUGE economy.

It didnt really work well in the 1800s why would it work now without the same boom bust cycles that are very damaging?
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Old 04-27-2011, 05:08 PM
 
1,234 posts, read 1,150,112 times
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Quote:
Originally Posted by Ferd View Post
Because I cannot find any way to see how it would work in a modern HUGE economy.

It didnt really work well in the 1800s why would it work now without the same boom bust cycles that are very damaging?
Maybe thiese pictures can explain:

http://www.reefseekers.com/PIXPAGES/Stone_money.jpg

http://farm4.static.flickr.com/3537/...e570467602.jpg

Why not? It worked before and looks like an employment opportunity.

Last edited by oldtimer2; 04-27-2011 at 05:23 PM..
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Old 04-27-2011, 05:18 PM
 
Location: Texas
34,819 posts, read 14,767,572 times
Reputation: 9054
Quote:
Originally Posted by Ferd View Post
Because I cannot find any way to see how it would work in a modern HUGE economy.

It didnt really work well in the 1800s why would it work now without the same boom bust cycles that are very damaging?
Why don't you think it worked well in the 1800's? What proof do have? I ask because I think the exact opposite of you in this case.

The money supply is 10 dollars I have 1. I have 10 percent of the money. Govt prints up 10 more dollars my value has dropped in half. We are taught to save money, playing with the money supply tells us we shouldn't.
The people have more power with gold as it cannot be easily replicated and watered down. It is harder to manipulate the value and therefore harder create or destroy wealth, which the Fed has power to do. No entity should have that much power.

ron Paul advocates a system of gold coinage where the value is weight. That way the Federal cannot manipulate the value.
check out Greshams Law its about bad money driving out good money

in a nutshell - If a 1 oz gold currency piece has a FACE VALUE WRITTEN ON IT of $50 but the price of gold per oz is $52 people will not spend gold, they will save it. They will instead spend paper money.

One duty of government is to have sound currency.

Don't take my word for it read this article, http://mises.org/daily/2826 , as it is Ron Pauls own words.



Last edited by Loveshiscountry; 04-27-2011 at 05:40 PM..
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Old 04-27-2011, 10:02 PM
 
19,170 posts, read 10,888,506 times
Reputation: 8970
Quote:
Originally Posted by Loveshiscountry View Post
Why don't you think it worked well in the 1800's? What proof do have? I ask because I think the exact opposite of you in this case.

The money supply is 10 dollars I have 1. I have 10 percent of the money. Govt prints up 10 more dollars my value has dropped in half. We are taught to save money, playing with the money supply tells us we shouldn't.
The people have more power with gold as it cannot be easily replicated and watered down. It is harder to manipulate the value and therefore harder create or destroy wealth, which the Fed has power to do. No entity should have that much power.

ron Paul advocates a system of gold coinage where the value is weight. That way the Federal cannot manipulate the value.
check out Greshams Law its about bad money driving out good money

in a nutshell - If a 1 oz gold currency piece has a FACE VALUE WRITTEN ON IT of $50 but the price of gold per oz is $52 people will not spend gold, they will save it. They will instead spend paper money.

One duty of government is to have sound currency.

Don't take my word for it read this article, The Political and Economic Agenda for a Real Gold Standard - Ron Paul - Mises Daily , as it is Ron Pauls own words.

I will happily ready RPs article. however, i know a little bit about history seeing it was my major in college... and I can tell you that the boom and bust cycles in 19th centrury America were pretty hard on folk.

i could be completely wrong here. I have not studied this much. but my understanding of a gold standard economy, the government is limited to printing only as much dollars as they have gold to back it up.

But what do you do when the need for dollars is larger than the supply of Gold? you have serious problems.

What happens when the total size of the economy outstrips the gold supply?
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Old 04-27-2011, 10:13 PM
 
19,213 posts, read 14,253,153 times
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Quote:
Originally Posted by Ferd View Post
I will happily ready RPs article. however, i know a little bit about history seeing it was my major in college... and I can tell you that the boom and bust cycles in 19th centrury America were pretty hard on folk.

i could be completely wrong here. I have not studied this much. but my understanding of a gold standard economy, the government is limited to printing only as much dollars as they have gold to back it up.

But what do you do when the need for dollars is larger than the supply of Gold? you have serious problems.

What happens when the total size of the economy outstrips the gold supply?

The Constitution says Congress has the power to regulate the value thereof.

Congress held it at $35 an ounce till Nixon de-tethered.

Gold coins, that is!
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Old 04-27-2011, 10:18 PM
 
Location: Texas
34,819 posts, read 14,767,572 times
Reputation: 9054
Quote:
Originally Posted by Ferd View Post
I will happily ready RPs article. however, i know a little bit about history seeing it was my major in college... and I can tell you that the boom and bust cycles in 19th centrury America were pretty hard on folk.

i could be completely wrong here. I have not studied this much. but my understanding of a gold standard economy, the government is limited to printing only as much dollars as they have gold to back it up.

But what do you do when the need for dollars is larger than the supply of Gold? you have serious problems.

What happens when the total size of the economy outstrips the gold supply?
The boom and bust cycles were not from gold fluctuating though.

I don't understand when you say "the need for dollars is larger than the supply of Gold". What need?
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Old 04-27-2011, 10:19 PM
 
Location: The Republic of Texas
78,883 posts, read 41,922,292 times
Reputation: 18463
Since the dollar is only worth 4¢ compared to 1913 when the Fed was created. A loaf of bread really is a nickle, I mean a dollar and some change.

If not for the Fed and manipulation of currency. A loaf of bread would still be a nickle.
Gas would be .15¢ a gallon
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Old 04-27-2011, 10:29 PM
 
Location: South Jordan, Utah
7,801 posts, read 8,228,680 times
Reputation: 3420
If we can just end the Fed, have congress issue debt free money and allow gold to be a competing currency, I think he may be satisfied. Gold won't work as a currency, it can just be manipulated by the elite.

The Money Masters
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Old 04-27-2011, 11:08 PM
 
2,024 posts, read 4,957,875 times
Reputation: 1996
Some of the central bankers have recently called out for some type of gold linked money like Alan Greenspan and others which should be enough to prove that its a trap and does nothing control the quantity of money but history shows quite well what works and what doesn't. Setting up a system that keeps the quantity of money in check is far more important than what backs the money. Never ending inflation absolutely destroys the people's money and linking the money to gold would not change it. The only solution is a transparent system separating special interests economic data reporting from the production of money and a debit free money produced fully transparent on the people's behalf with quantity controls like the quantity of money being based on economic growth or population growth.
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Old 04-27-2011, 11:09 PM
 
10,854 posts, read 8,737,441 times
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Quote:
Originally Posted by oldtimer2 View Post
Maybe thiese pictures can explain:

http://www.reefseekers.com/PIXPAGES/Stone_money.jpg

http://farm4.static.flickr.com/3537/...e570467602.jpg

Why not? It worked before and looks like an employment opportunity.
The point is IT DIDN'T work before and there is not way it can work in a gloabalized modern economy.

On another note the largest producere of gold in the is CHINA. We would you give them the same power over monetary issues that the Middle East has over oil?
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