Posted on 07/15/2014 8:05:11 AM PDT by Kaslin
And how do you keep it there?
Depending on where you get it, about 2 to 3 pre-1964 dimes. I remember that $0.30. hamburger in my local diner.
Well, that is not gold. Though if we go to a bimetallic standard it could work.
The issue is (and was quite frankly) that metals are a commodity. The value of a given commodity will change in relation to other goods and commodities.
Have a gold standard (or a gold/silver standard) wouldn’t change that.
Using your example of a hamburger being 3 silver dimes (were the pre 1964 dimes all silver?) as a starting point (assuming something the order of a McDonalds hamburger) do we have enough hard silver to be used to run the economy?
For that matter, we use silver industry. Do we have enough to do both?
The issue is the same as it has always been. The State will debase the monetary supply because they can. The did it with gold, silver, paper, in kind, and just about every financial system yet developed.
Well, to actually keep it there, you’d probably have to back every dollar with gold, and that’s where it would fall apart, according to a previous reply, so never mind.
Indeed. And digging up gold from underground and then putting it back underground in safes as the only use of it doesn’t really offer any ‘real’ financial backing imo. There’s good economic theory about why gold backing is bad.
The Bretton Woods system at least certainly sucked. Other countries began demanding physical gold when the dollar got weak, and it starts spiraling out of control until you’re sucked dry.
Don’t disagree with a single thing you posted.
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