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To: dennisw

How do you counter the argument that gold based currencies limit expansion? I provide widgets that add productivity and efficiency into a process, increasing wealth growth - how does a metal reserve allow this? I mean all that “wealth” sits in a vault, how do create growth in the money supply? I think I heard Hugh Hewitt comment along these lines.


12 posted on 05/21/2010 8:46:24 AM PDT by RushingWater
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To: RushingWater
How do you counter the argument that gold based currencies limit expansion? I provide widgets that add productivity and efficiency into a process, increasing wealth growth - how does a metal reserve allow this? I mean all that “wealth” sits in a vault, how do create growth in the money supply? I think I heard Hugh Hewitt comment along these lines.
  1. At this point people would be overjoyed to use a major currency that was 10-20-30-40% backed by gold
  2. An honest currency could be backed by gold and silver
  3. Until about 20 years ago the Swiss currency was 40% backed by gold and they did well. Had a nice sober economic growth
  4. Our currency used to be backed by gold from 1873 (Coinage Act of 1873) until 1933
  5. After that our currency was backed by gold for external transactions...for foreign trade
  6. This ended in 1971
  7. We used to have paper currency that was backed by silver...Ended in 1964.
  8. We had a huge Federal silver stockpile that backed these silver certificates (paper currency)
  9. The huge world wide expansion of debt on all levels of government, consumers, businesses shows we need limitations and restraints.
  10. Mandating that a currency be partly backed by gold and silver can do this and is preferable to what we now have that is imploding in Greece already
  11. too many promises (by governments) = too much debt
  12. we have a debt backed currency. Your Federal Reserve note is a debt instrument "backed" up by US Treasury debt obligations (T Bills)
  13. A gold and silver backed currency at least has some intrinsic worth.
  14. Currency we have now has no intrinsic worth unless you call being backed by TBills something intrinsic

20 posted on 05/21/2010 10:25:37 AM PDT by dennisw (The falser the prophet the more mentally deranged the adherents)
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