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
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.