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I have always been a bit skeptical about calls to return to a gold standard, mostly because guys like Glenn Beck keep pushing it and I can't subsribe to his looney John Birch society conspiracy theories (although before Fox canned him, I think even the John Birch society was going "Glenn, I think you might be crawling out on that branch alone there, buddy") but this interview made some salient points from a respected investor which I felt was worth reading. I am not blindly tied to ideologies like some, so I welcome fresh ideas and reasoned perspectives even if they are positioned against something I may support, and this article provides that. Plus. I know enough to know I am no expert in global monetary matters no matter how much I may listen to some idiot shouting at me from my radio or how many emails I get from my friends who think they are experts on the subject because they read about it on the internets
What aspects of your life-style are you willing to sacrifice to go back onto the gold standard? Are you willing to share accommodations because you won't be able to afford your own home? Are you willing to give up your credit cards or have your credit limit seriously reduced? Are you willing to start putting 20% down when you buy a new car?
See, when you're on the gold standard, the amount of money you have to loan is limited to the amount of gold that you have.
And you need $30 TRILLION in gold to back your National Debt and your GDP.
And then for your economy to grow, you are now dependent either 1) the price of gold rising, or 2) constantly buying more gold 3) or both.
What actions will take to regulate gold speculation? Because gold speculation wrecked total havoc with your economy until you got off the gold standard.
Will going to the gold standard prevent recessions or depressions? No. During the 19th Century and the early part of the 20th Century you had 3 major economic depressions plus numerous recessions and panics.
Will the gold standard save your housing market? Nope. Interest rates would go up. Banks would be very, very particular about who they lent money to. If you had a good credit score, you might get buy with only a 25% down-payment, but if your credit score is just average, you might have to put up 35%-50%.
Will it help unemployment? Nope.
An $8/hour call-center worker and a $38/hour union factory worker both have the same problem, and that is they cannot compete globally against people making $0.75/hour to $3.00/hour.
Will it make the US Dollar stronger against the Euro? Nope.
The US dollar is weak against the Euro because the US Dollar stomped the individual currencies of each country, but collectively they have strength. The fact that many countries don't want US Dollars because having US Dollars means the US is in your business 24/7 interfering with your economy, domestic affairs, internal affairs and international affairs. A lot of countries have just had it with constant US interference, so the EU and BRIC look real good to them.
I don't think people would realize how much they'd have to sacrifice if they went to the gold standard and that it would accomplish nothing for them.
What aspects of your life-style are you willing to sacrifice to go back onto the gold standard? Are you willing to share accommodations because you won't be able to afford your own home? Are you willing to give up your credit cards or have your credit limit seriously reduced? Are you willing to start putting 20% down when you buy a new car?
See, when you're on the gold standard, the amount of money you have to loan is limited to the amount of gold that you have.
And you need $30 TRILLION in gold to back your National Debt and your GDP.
And then for your economy to grow, you are now dependent either 1) the price of gold rising, or 2) constantly buying more gold 3) or both.
What actions will take to regulate gold speculation? Because gold speculation wrecked total havoc with your economy until you got off the gold standard.
Will going to the gold standard prevent recessions or depressions? No. During the 19th Century and the early part of the 20th Century you had 3 major economic depressions plus numerous recessions and panics.
Will the gold standard save your housing market? Nope. Interest rates would go up. Banks would be very, very particular about who they lent money to. If you had a good credit score, you might get buy with only a 25% down-payment, but if your credit score is just average, you might have to put up 35%-50%.
Will it help unemployment? Nope.
An $8/hour call-center worker and a $38/hour union factory worker both have the same problem, and that is they cannot compete globally against people making $0.75/hour to $3.00/hour.
Will it make the US Dollar stronger against the Euro? Nope.
The US dollar is weak against the Euro because the US Dollar stomped the individual currencies of each country, but collectively they have strength. The fact that many countries don't want US Dollars because having US Dollars means the US is in your business 24/7 interfering with your economy, domestic affairs, internal affairs and international affairs. A lot of countries have just had it with constant US interference, so the EU and BRIC look real good to them.
I don't think people would realize how much they'd have to sacrifice if they went to the gold standard and that it would accomplish nothing for them.
LOl Funny post. Little can be verified because it's incorrect.
The major economic depressions and recessions were worse and longer after the Federal reserve. When government or banks manipulate the economy we have crashes. Which is why we had crashes before the federal reserve but NOT NEARLY as bad. Read an economic book by anyone but the Keynsians fools, you might learn something.
"If you had a good credit score, you might get buy with only a 25% down-payment, but if your credit score is just average, you might have to put up 35%-50%. "
no sh*t sherlock
the reason people put down large down payments and have good credit scores means they have a good chance of paying off that loan. Lending institutions are in it to make money. duhhhhhhhhhhhhhhh
Gee do you think this depression was caused by loans to bad credit risks with extremely low down payments? naaaahhhh those people always pay back loans with no problem. That's why bad credit, low down payment people are always at the top of anyones lending list.
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