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Lack of Gold Standard Hurts U.S. Economic Growth, Forbes Says
Townhall.com ^ | July 15, 2014 | Paul Dykewicz

Posted on 07/15/2014 8:05:11 AM PDT by Kaslin

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To: Tolerance Sucks Rocks
If you set it at the old $20.67 cents peer ounce, you would be right. However, if you set it at something approaching the current market rate, such as $1000 per ounce, we might be able to swing it.

And how do you keep it there?

21 posted on 07/15/2014 12:53:46 PM PDT by DoodleDawg
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To: redgolum
Ok. I need to go buy a hamburger. How much gold, and how easily is it transferred?

Depending on where you get it, about 2 to 3 pre-1964 dimes. I remember that $0.30. hamburger in my local diner.

22 posted on 07/15/2014 12:56:07 PM PDT by Stentor (Maybe the Goldman Sachs thing is just a coincidence. /S)
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To: Stentor

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.


23 posted on 07/15/2014 1:15:48 PM PDT by redgolum ("God is dead" -- Nietzsche. "Nietzsche is dead" -- God.)
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To: redgolum
The State will debase the monetary supply because they can.

The State will devalue money because that's how it pays it's debt. Borrow more valuable currency, repay with much less valuable currency.


24 posted on 07/15/2014 1:33:58 PM PDT by 867V309 (Don't tread on me, bro)
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To: DoodleDawg

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.


25 posted on 07/15/2014 2:34:25 PM PDT by Tolerance Sucks Rocks (They're not illegals, they're crimmigrants!)
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To: thejokker

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.


26 posted on 07/15/2014 2:43:15 PM PDT by Monty22002
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To: redgolum

Don’t disagree with a single thing you posted.


27 posted on 07/15/2014 2:52:20 PM PDT by Stentor (Maybe the Goldman Sachs thing is just a coincidence. /S)
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