Posted on 12/22/2015 12:39:11 PM PST by 2ndDivisionVet
LOL!!! Oh good Lord.
This sounds like a plan to draw in the Paulers.
Also to draw a distinction between him and Trump. Trump, being heavily invested in real estate and heavily mortgaged, will favor high inflation. Cruz can be the anti-inflation candidate.
When America was on the gold standard, there were more dollars out than available gold. The quantity of gold -- even if it's only 5% or 10% of the currency in circulation -- is used only to check further expansion of the currency.
When people fear that too much money is being issued (i.e., credit issued), they can exchange their dollars for gold thus drawing down the gold reserve and forcing a contraction in credit.
Fiat currency has no boundaries because interest rates are the main driver. Bretton Woods was based on gold and the US dollar. There is not enough of the former and the latter is too weak now.
Credit as it is defined today is not absolute, it's infinite to the point of absurdity.
I heard him say that when he first started campaigning. I posted a thread about it.
That is not true, and I’m sure Cruz is quite capable of thinking for himself.
After reading this I’m not at all convinced that going back to the gold standard would be anything but disastrous.
http://gold-standard.procon.org/#background
Hurrah!
A new group inspired by Ted Cruz’s plan to tie the U.S dollar to a unit of solid gold is planning to spend up to $1 million to back his hopes in New Hampshire,LOL! $1 million is Trump change. They'll spend $50,000 and pocket the rest...And Cruz won't even get a thank you because he's not allowed to talk to them. Wink-wink
The other side of the story:
What exactly are you trying to say?
“Too late. The world works on credit not collateral.”
Great line. Not sure how true it is but it stimulates thinking.
I don’t own gold and I’m suspicious of anyone that wants to make what I have less valuable and what they have more valuable. Call me selfish.
Most average voters, the man-on-the-street, the blue collar and factory workers, store clerks, etc. won't even know what the hell he's talking about. Even reading the article made my eyes glaze over.
I don't see "gold" or "gold standard" or "stocks" as high on the list of folk's issues.
Shadowy donors pouring all this money into Cruz's campaign based on this issue has lose/fail/ho-hum written all over it.
Not that the idea is bad...but as an issue, it just won't play in Peoria.
Leni
Think of it this way. Gold is less of an investment and more of a hedge.
I own some.......I really don’t have any intention of selling it for the sake of profit so it’s just there. My kids will take it and do what they wish with it, I figure for them it’ll be found money no matter the price.
As far as your suspicion.....the Fed has been doing its best to weaken the USD and if it weren’t for every other Central Bank trying to do the same it would be far worse. We haven’t had inflation (well reportable inflation) in some time so gold doesn’t really work well and hence why during a time when the Fed is starting to hike with no meaningful inflation it will weaken.
But.....when they get to ahead of themselves, and they will - always do, that’s when you want to hold some gold. I think 2016 will see the US economy fall back and the Fed will be forced to stop raising and at least pause. First sign of recession and the USD will fall back again naturally.
Until the debt and budget are addressed, you are being devalued without feeling it.
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