He’s talking about gold as currency.
This makes sense.
Any currency backed by gold (really backed) and without any trickery or serious sovereign risk is better than any fiat currency - especially if that gold is dispersed throughout the market and instantly convertible from notes and/or non-precious specie.
He’s talking about gold as currency. This makes sense.
Not really. The only way you could increase money supply would be to mine more gold, and gold is really scarce!
As economies grow and populations increase, gold would become more valuable, locking the nation using gold as currency into constant deflation.
For example, take the US dollar. We own about 200 million ozs of gold. That is approximately 300 billion dollars worth at $1600.00 an ounce.
Our M1 money supply is 2.1 trillion dollars. That means that the gold would have to be valued at $11,200 per oz to cover money in demand accounts and on hand cash. Of course, you could devalue the dollar by 85% and accomplish the same thing. This is just based on the M1 money supply.
Our M2 money supply is four times higher.....
Gold backed currency, especially for the US, is a fantasy. That is the reason only RP is talking about it.
Whether its backed by gold or not, a global currency is a political move rather than a financial move. We already have (had?) a global currency in the dollar. The US dollar is accepted anywhere on the planet.
Simple question; where in the Constitution Ron Paul professes to support does it give the Federal Govt the authority to subordinate America to a global currency?
The global currency would certainly not be controlled by America and it would certainly have to be compliant with the requirements of Islam.