Should we go back to the gold standard?

I did a little research before posting this, but I have to admit I am very limited in my knowledge of how the gold standard will work and if it is even a good idea. So I am asking the more knowledgeable people in this forum to look at this video and then explain it in more detail.

Also please give the good and bad reasons to go back to the gold standard. One last thing is how would the gold and silver coins we have be affected if we did go onto the gold standard?

 

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If it says 'Must Watch', I won't.

 

I agree with rickmp. Anything that is advertised as "much watch", is garbage.

 

They are talking about the topic is all, who cares if it says must see, I am asking for a reason it would be good or bad to be on the gold standard, ignore the video if don't want to see it, and just answer the question instead.

 

scfy, watch this video. You may like it.

 

I would rather be on my American Standard.

 

Going back to a gold standard would not make much sense at this point, our dollar is so devalued, a twenty dollar gold piece would weigh 1/64th of an ounce. Try not to loose that in your wash. It would be a pretty cool collection though.

 

As much as the metal bugs would like to go back to the gold standard, I think it really falls under "Be careful what you wish for". The simple fact is we grew out of the gold standard. Under the gold standard, if the money supply needs to be expanded, you have to wait for it to be dug. This will cause a huge drag on the economy. It makes little sense to have an economy that is busting out at the seems to grow, but it cannot, because it needs to wait for the money. If you are not a fan of inflation, wait until you try deflation, that is a real downer and it is not good for almost everyone.

 

Similar question, should music go back to the vinyl standard? Many things are better theoretically, such as real photographic film, but it is gone because of convenience and the increase in modality ( ways to utilize it). Digital is now the active media because it is easy to utilize digital music, film, and images. Should we go back to the family scrapbook and photos in our wallets? Precious metals as currency backing are gone, get over it. The next step is to replace the paper currency totally with digital ( not bitcoins ) . I am not saying the backing is better or worse, just the current direction whether I like it or not. IMO. ( I dislike Rap also)

 

Having more money available is the answer?

Wait....why am I posting in the troll's thread????

 

I think we should go on the TP standard - it is getting pretty much universally known, and unlike gold, it is easily made. Heck, even Russian kombinats were paying their workers in TP during the early 1990s.

 

Having more money available WHEN NEEDED, is the point. We, and the rest of the World could argue forever, how much is needed at any particular time, but at least there is some level of control. On the Gold standard, you are at the mercy of how much is being dug.

 

Everyone has to sail their own ship. If you want PM, buy it, but don't depend on any event such as 'backing' currency increase your monetary level. Likewise if one prefers Real Estate, stock, etc., the same applies.

And even though the OP has fewer posts than the rest posting on the thread, that is no reason to imply they are a troll.

 

History has taught us that you can either have gold, or you can have a gold standard. You can not have both. The banking crisis of 1932 resulted in a run on the exchange window which diminished the currency and resulted in the confiscation and limitation of gold held by US citizens. In 1971 the French demanded to exchange their dollars for gold which would have resulted in a crash of the dollar. It was at that point that the gold standard was abandoned. You can have a gold standard but you can not have an exchange window. The gold will need to be protected in order to back the dollar. There is also no guarantee that congress or the governing authority will not revalue gold in order to increase the money supply. In 1932 before the confiscation, the treasury was paying $20.00 per ounce for gold, in 1933 after the confiscation, they revalued gold at $32.00 an ounce and increased the money supply.

 

Just a little clarification, the price before the confiscation was $20.67 an ounce, afterwards it was $35 - a nearly 40% devaluation of the dollar.

The French policy was not new, it was implemented during the De Gaulle administration and continued after De Gaulle was out of the picture and actually increased steadily until Nixon closed the option.

 

That is true on both counts, I was pulling from my rather faulty memory. Thank you for the corrections and clarification.

 

I would say that's still a pretty good memory. For me, it is the general concept that is important; unless, of course there is going to be a pop quiz later.

 

As I see it as long as you possess gold you are on the gold standard, even if the government and everything around you isn't. If the government were going to do a confiscation or whatever you want to call it again, like last time the people in the know will send their gold somewhere else. Where did all those $20 Libs and Saints come from? Europe, where the Rockefellers, Mellons, Vanderbilts etc sent their gold starting in the late 1920s. They saw it coming.

 

Simple answer, no.

I would personally prefer that we replace Federal Reserve Notes with United States Notes, IMO the Federal Reserve is getting way too big for their britches, why should we enrich a private concern from Federal taxes?

Lack of transparency, different interests than those of the nation, two reasons the federal reserve should be phased out.

 

No we shouldn't, and this is a political question.