THIS ONE IS BIG: Gold backed currency introduce
(www.moneymetals.com)
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”Federal Reserve notes would become fully redeemable for and exchangeable with gold.”
This is exactly what the world needs!
Imho, there’s no way DS would even discuss the issue of redeemability. It puts the power back into the hands of we the people. Therefore, I would give this proposal the benefit of the doubt.
Well, you're right of course, BUT here are a couple of questions: Is this a case of too little, too late? Can the dollar even be salvaged at this point by precious metals? And another: How much gold reserve does America have right now AND how much US currency is out there in circulation? Is there enough gold in our reserves to cover existing currency?
Not an economist here, just an average Joe, but how do these things work anyway? And, how does such a gold standard act retroactively for existing fiat currency?
EDIT: Follow up thought... how long before some stooges in the legislative process say that this idea is "a danger to democracy"?
It’s a good question, whether or not the dollar can be salvaged. I think that fixing the dollar would make the transition less bumpy. But, as you said, it’s not easy to restore the integrity of the dollar, so much damage has been done.
If gold and silver are allowed to trade freely and honestly, I believe their price in terms of dollars will skyrocket. Ultimately, that can (and in theory should), fix the problem of there being too little gold for it to be used as money.
The question of gold reserves is something I often ponder. I live in Finland, and our gold reserves could be stolen already. In the the US, the situation is better. I believe that you have the gold, as Q confirmed. As the saying goes, posession is 90% of ownership. And that is relevant as there is at least dozens of claims of ownership for every ounce. That is something that has to be solved somehow.
Thank you for that very thoughtful response.