Liberty Dollars

You're going to hear a lot of misinformation on this topic in this thread, so the correct thing to do is to just think about it, study it, and don't take anything as truth unless you can substantiate it for yourself, including anything I say.

The thing to keep in mind is that our economy appears to be "big" and appears to be growing fast primarily because of inflation. Part of current economic theory is that the economy will implode unless the fiat money supply grows at a rate no slower than the long term Treasury bond rate, regardless of whether or not there is any real economic growth. The result of slower growth would be a deflationary depression. Now, there isn't enough gold to replace the $1trillion in circulation with the 261million ounces of gold owned by the Treasury unless the price goes to about $4,000 per ounce. This is due more to decades of bad monetary policy rather than any flaw in gold. It just shows you how much economic peril fiat currency has put us in. Maybe $4,000 per ounce is a more accurate gold price to reflect its monetary value. Or maybe some other transition would be needed to get back to a gold standard by operating a hybrid system for a period of time first. There aren't many people thinking about this topic, which might be easily solved. We aren't going to get the chance to find out, but you can learn a lot about monetary economics by exploring the possibility. Mexico is ahead of the US in this area. There have been proposals and a methodology identified to put Mexico back on the silver standard, but the bankers are blocking the effort. It's an interesting topic.

 

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From a source that should be acceptable to you:

http://www.phil.frb.org/education/intersections/Winter2005/wn_05_1.html

"Money has three functions. As a medium of exchange, money can be used for buying and selling goods and services, thereby allowing society to avoid the difficulties associated with barter. When you present cash or use a check or a debit card at the grocery store, you are using money in its function as a medium of exchange.

As a unit of account, money can be used to judge the relative value of different goods and services. Money lets consumers and producers make rational decisions about buying and selling goods and services. When you check the price of a good or service and compare it with the price of another good or service as part of your purchasing decision, money is being used in its unit of account function.

As a store of value, money can be used to transfer purchasing power from one period to another. When you get paid by direct deposit into your checking account and do not spend the money for two weeks, you are employing money’s store of value function."

Frankly, Ruben, I don't understand why you feel so threatened by the possibility that gold and silver could be used as money. It isn't like it's making a comeback anytime soon. But denying the possibility that it could be used, when it already has been successfully used, is irrational.

 

How much steal was made in tonage world wide in 1950 and 2000. How many cars? How many tonages of cargo is on the ocean betwen now and 1950? How many more barrels of Oil are being used today and in 1950? How many tons of grain are we producing today versus 1950? How many citys today are over 7 million, as opposed to 1950?

Name one sector of the world economy which has shrunk per unit.

Your just making stuff up.

Ruben

 

Your misintperteting the article. The storage of money from Monday to Friday is not the same as hoarding money as a primary storage of wealth, which is exactly what your saying. Wealth in a modern economy is usually devoid of large stocks of cash and gold hanging around. Your also now asking a different and misleading question with regard to the metal in coins being used as money. Nobody cares if coinage has silver. What we are talking about is that you think we need to have the gold standard imposed. That is an entirely different thing and having gold coins in circulation. And it would cause economic failure as it has every time it was been used as the standard for money.

Ruben