Trump talked about bringing back the gold standard and as we know he's in the process of taking out the Rothschild thieves. I don't know anything about economics but people say everyone will be more prosperous if the gold standard comes back. How will the gold standard affect us? Thanks
EDIT: Thanks for all your comments guys! Y'all helped me understand
end of the silent tax: inflation
also removes all the nonsense the Fed does, which is a LOT of nonsense. Fed created the giant disparity of the mega wealthy
big biz can borrow money basically for free, how are small biz supposed to compete against that?
would we still use paper money thought? how about people that saved up cash for a while, how will it affect them
the current fiat currency would be converted to the gold backed currency at some rate, so unless you have gold/silver it should not affect you that much.
assuming the stated amount of gold is there to back the M1 supply, it is about a 10x increase in the price of gold. something like 20,000 fiat dollars per ounce of gold. historically silver is about 1/15 gold, currently it is 1/72. assuming a 20:1 ratio is used, that is a price of 1000 fiat dollars per ounce of silver.
a constitutional dollar is about 0.7 ounces, so that creates a 700 fiat dollars to 1 silver dollar. as all things get repriced in silver backed dollars, the same 700 to 1 ratio would be used, so if you have 7000 fiat dollars you would get 10 silver dollars, but those 10 silver dollars would buy 7000 fiat dollars worth of stuff.
the 20,000 fiat dollars per ounce of gold is an educated guess, might be 5000, which would just change the above calcs linearly.
there might be new paper money issued that is backed by silver, but the existing paper money will need to be changed over at some conversion process similar to above
so if you have lets say 50000 in cash, its not going to poof go away, itd be converted into a newer paper currency?
yes, pretty confident on that. the whole point of this is to help people and making all the money people have worthless would be the opposite.
50000 in cash would get 50000 worth of gold/silver at the official conversion rate.
okay thank you for the clarification
Do you think they (fingers crossed it happens) might go balls deep into the olden days economics and just destroy minimum wage laws and all the rest?
generally speaking, if gold standard happens we should expect to see other dramatic reductions in regulations.
but isnt minimum wage mostly a state issue? maybe state governments will align with the reduction in regulations. however that would require an election cycle with non-politicians to change things to a more sane system at all levels
Biden proposed a federal minimum wage of $15/hour.
Of course that will hurt businesses and many will be replaced by robots, which is the point.
They would not be able to artificially inject 82 billion dollars a month into the fed/economy.
Thanks for the comment bro!
Absolutely. They have been doing quantitative easing for well over a decade all started by Bush.
Your savings will not evaporate over time. You will have more buying power at home and abroad. You will have to work less in order to afford the same lifestyle, or work the same and increase your standard of living.
Thanks for the comment bro!
Think about how life would change for people if money got more valuable (stronger dollar/purchasing power increase per unit) over time. (Savings vs Credit is how you buy things.)
Think no income taxation. (Income tax is the "collateral" the FEDeral Reserve receives in exchange for extending credit to the USG in the form of the dollar. They print our money and we owe them interest on every dollar the we borrow.)
If you're interested in learning more about free markets and liberty, check out Mises.org and others who are considered students of the Austrian School of Economics.
Ideally you want money to just be stable. Definitely no inflation, but deflation is almost worse, especially for those who have mortgages or other debt (paying back your loan with more and more expensive dollars), or variable income (because then time of income receipt becomes a major factor in your planning).
I've never understood the argument that deflation is worse in the context of a sound money system.
The costs of goods being cheaper over time (all other factors remaining constant) is a good thing for those purchasing those goods. It infers that goods are cheaper to produce and competition to produce and sell those goods is driving prices down and/or that the value of those goods in relationship to the unit of money is less. Allowing you to buy more with that single "money" that you could before. Think TVs getting cheaper and better over time. That's the kind of deflating of prices of consumer goods that I'm referring to. So you have more money to spend elsewhere after buying the same amount as you needed before, or you get a much better product for the same price or less over time.
A stronger unit of money over time rewards saving and savers. Wealth can accumulate in the hands of the people when government can't inflate or deflate away you're savings.
There is a paradigm shift that should be taken into account when you don't have to get rid of your money before its value is eroded.
That's not deflation, that's just a drop in the prices of goods, possibly because they're becoming cheaper to produce. Like inflation, deflation is "always and everywhere purely a monetary phenomenon." See my comment elsewhere in the thread forel some of the other problems with deflation.
Thanks RadicalPede!
Assuming the average person didn't get physical before the event they wouldn't realise much of anything. Know this, when/if it does go to a gold backed currency you won't be able to buy actual gold - nobody will have any stock. So put your toe in a little while you still can. Professionals have been predicting $20k gold/ounce. You could buy a house if you get in early.
Why is that? I think the DS pushed through limiting access to gold so they could have it for themselves. Gold coins were used for a long time, and paper currency was backed by gold.
It will be sold out. Sorry I didn't make that clear.
Space Force can make a garbage sweeper to collect all the space trash. You wouldn't believe how much gold is in aerospace equipment, probably Ft. Knox is circling overhead.
sure glad my spare room has a lot of it stashed away.
I have a few ounces of AU and many Kilos of Silver (not in my house!!)
So are you saying buy gold now when it’s at $1,800/ounce, and then it’ll be worth $20,000/ounce once we get off the Fed?
Watch Mike Maloney hidden secrets of money. $20,000 might be conservative because gold price in $ MUST come UP to the amount of USD floating in the system. Whether that's M1 or M2 money supply or M3 (total credit in the system). If gold were to cover ALL credit card debt (m3) then it's in the 100,000's of USD PER OUNCE! Fascinating stuff.
https://goldsilver.com/hidden-secrets/
Exactly. If you have a billion dollars and only 1 ounce of gold to back it the ounce is worth a billion. It won't be that fantastic in order to not inflate gold out of reason. Bit there is plenty of gold to back our trillions including gold still in the ground. Technology allows us to find it and assay it still in the ground. I heard the gold will stay in the ground too so it can not be Moved ever. Our money will be based on permanent gold holdings.
Yeh, they'll use ground-storage gold to cover it. All the massive US Gold reserves were sealed and designated as 'parks' to keep it safe whilst the US govt stole all other nations reserves. Kinda falls under PNAC IMO. Not mining it, I did not consider that, kudos!! https://en.wikipedia.org/wiki/Project_for_the_New_American_Century
Fort Knox was raided and depleted to basically nothing when the likes of Germany and other countries demanded their gold back also a lot was stolen sent to other countries in bribes etc.
Awesome, thank you!
Huge positive impact, but initially it would probably be negative and very disruptive. The overall positives are many. The biggest one is that it would forcefully restrain government. With paper money, government can print and add endless new programs and projects. Government cannot print gold. Anything they spend has to come directly from taxes, making people far more aware/averse to government spending.
A country on a gold standard is night and day to paper money. Gold standard will mean people save more, will make banks more responsible, will make businesses smarter and more likely to serve an important purpose in the economy. It will make the value of our money increase over time. It will mean we can work less hours yet have more prosperity. Gold was and is THE FUTURE, even though it's currently in our past. They have taken us back in time to an archaic system called "paper money."
Value of money should not increase over time. This is bad for a variety of reasons. Money value should be stable.
Value of money increasing is good because it encourages savings. If the value of your money held in the bank is rising over time, people are more likely to keep it in the bank and delay spending. The bank in turn then has capital available to provide loans- allowing home loans, business loans, etc. The more savings a bank has to give as loans, the more new businesses we will see, the more people will be able to purchase new homes. What downsides do you refer to- my guess is that people will horde their money and stifle the economy. I don't think this theory holds true. The purpose of earning money is ultimately to spend it and enjoy the fruits of your labor. People will ultimately spend their money, but a currency with increasing value encourages more savings which is the lifeblood of a real economy.
Deflation also discourages entrepreneurship and capital investment (hurdle rate is higher). People who own homes with mortgages have to pay back their dollar-denominated loans with more expensive dollars. Businesses are disincentivized from providing a static salary. Gig jobs become harder to get. The pace of spending slows. Exports fall. Deadweight loss of existing taxes and subsidies become much more egregious. Transaction costs of options and futures contracts increase. Insurance policies must be managed more carefully. Long-term leases are disincentivized. Long-chain production activities (like mining and oil extraction/refining) become compressed, discouraging investment. There are mix effects that make it all very complicated.
Instead of all this, best situation is stable money, with neither inflation or deflation.
Why would people not invest in mining? There are huge profits to be made. If I invest 100 dollars today and make 1,000 tomorrow, that is greater than the rate of deflation.
The decrease in prices will not be sudden and chaotic. It will be a slow, heavy, downward pressure, that takes time to occur. In the meantime, of course people will still invest and make transactions. The point of an economy is to make money and to secure resources.
People will just have to calculate their savings as more valuable than they are currently. This will make people more hesitant to make risky investments, which is a GOOD THING (Bernie Sanders voice). It will encourage frugality, and wisdom in investments over speculation and risk-taking.
Prices will naturally decrease in a gold based economy. Wages will too, slowly. Yet, the value of your money will increase. A dollar saved today is 1.50 in 2 years.
Thanks for the comment bro!
Somebody is sucking up all the palladium and rhodium in the world, also key metals in manufacturing as well as potential currency backing. Prices have been as wild as gold.
That's incredible. Thanks for the comment bro!
The purpose of massive QE is to bring the US in line with third world nations.
If we continually devalue the dollar, eventually that "$15" minimum wage is going to be worth less and less. There are two different definitions of American Exceptionalism. One that the neocons use, and the real one: America First.
Thanks for the comment bro
By having a gold standard, we the people have leverage by owning capital. Inflation and quantitative easing rip the power of collective capital out from under the feet of the masses. What good are savings and investment when the money can be vomited into existence?
The common person would actually see legitimate INTEREST GROWTH on their finances kept in an investment bank. Not this fractional-to-2% growth on secure deposits. Saving money, being frugal, would be rewarded, even if kept in a freakin' mattress; rather than the debtmax lifestyle of use-it-or-lose-it.
Sounds fantastic! Thanks for the comment bro
This is why clinton murdered Gaddafi. He was hording gold and was getting neighbouring countries to join him in a gold backed currency. That was his sin that sealed his fate and his countries fate. You do know that Libya had the best in africa when clinton ruined the country for the jew banking system didnt you? Hell Lybia did not have a jew central bank back then.
Libya had free health care, schooling, interest free personal and business loans (yup buy a house or start a business pay back the principle when you could), money gifts from the government when you got married or had a child. He kept back the hordes of apes invading his country and stood as a wall holding them back from europe.
Now Libya is a failed country with waylords, slaves, murders, central bank, rebels, the people live like shit, and it is the main parh for subhuman invasion of europe.
Yup, Gaddafi challenging the petro-dollar was a huge mistake for him.
I say we just tell the Rothschilds to kick rocks, problem solved?
Depends on the value assigned to the gold.
Disbanding the Federal Reserve would also help. Rumor has it JFK was also in favor of that. See what happened to him.
How will this affect safe havens like gold and dare I say BTC?
all depends on the conversion rate applied to the gold/silver backed dollars.
see my above comment. in order to reward the people with gold/silver (DS has been suppressing price of gold by 10x) my guess is that gold would be repriced significantly higher.
with bitcoin priced relative to gold, i would expect bitcoin price to go up, but not as much as gold does, lets say about quarter to half the increase in gold price at first. this is because any such rebasing of the dollar is directly beneficial to gold, so it would get the most benefit. but over time, gold being worth 10x would give bitcoin a lot more room to grow
Their money would be worth 10xs it's curre.t value if swapped dollar for dollar.
inflation, interest & taxation - the financial tools that the world's elite have used to keep everyone else at the bottom
how to fix:
gold/precious metals standard currency basically ends inflation
end of the fed reserve & their policies will dramatically change how much interest we pay
tax codes & government spending transparency remove the government corruption will leave more of our money for ourselves
It would immediately tame the spending in washington.
Long term (and destroy me if im wrong), the economic growth might slow down, but its gonna be a lot more stable, and people's real income (so not just the number of dollars, but what those dollars can actually buy), will increase much more steadily. People will have a reason to put money aside, because there won't be a threat of the FED just expanding the money supply by 160%, like they did in the past year. Also, if i had to guess, government spending is gonna be cut big time.
In short, its gonna be a big change, but for the better.
I can already taste the tears of the keynesians.
There pro and con arguments about the gold standard. A good thing would be if the US Dollar were officially backed by gold on deposit at the various Federal Depository location ( there are at least 8 scattered around the USA). OTOH, if the Dollar was exchangeable for gold there would be a massive and potentially crippling run or rush to redeem. Making the Dollar "float" with the price of gold would cause hour-by-hour fluctuations in the "value" of the Dollar -- a disaster for foreign trade. Personally I would like to see a return to the old "yellow-backs" and gold coins. Today, as an inflation exemplar, a single Double Eagle (face value $20), will buy a new refrigerator. $2,000 in paper or credit is required under the present system.
Buy $NAK
Holding since $1.03 ?
I hope we dump all the debt all the cc's everything and start clean.
Why? People spent their money irresponsibly and they get a clean slate? They bought fancy cars, nice clothes, and too big a house to snub their nose at their neighbor who were more fiscally responsible, and you reward them for that? That would be a big fuck you to anyone who was smart with their money.