Utah considers return to gold, silver coins

I believe South Africa is the world's largest producer of gold followed by China - the US is 4th. With the demand for copper so high - Peru could end up passing the US fairly soon. It doesn't make sense to me. The people advocating a return to the gold standard are the same people that are fearful of the US Dollar losing its reserve currency status. Yet under a gold standard you give majority control of creating new money to China, South Africa and etc..

 

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It's political theater, a way to dramatize the teabagger's lament that the dollar is going to become worthless edited

 

The article doesn't say that one HAS to use gold to pay their taxes, but rather that "The coins would not replace the current paper currency but would be used and accepted voluntarily as an alternative." (last sentence of second paragraph)

 

States are allowed to accept gold (or silver) as payment if they want. The federal government can't stop that. There are several states that are considering this type of law.

http://foolocracy.com/2010/12/georg...equiring-taxes-to-be-paid-in-gold-and-silver/

http://www.caseyresearch.com/displayCdd.php?id=630 -- read 2nd story, titled Virginia Takes the Lead

I think that the US government gave up on gold simply because they could no longer fund their spending as long as the US dollar was tied to gold. That is why Roosevelt confiscated gold back in 1933 and immediately raised the amount of dollars per ounce of gold, and that is why Nixon entirely put away the gold standard.

Actually, there is plenty of gold to use as money, but the amount of US dollars per ounce would have to be VERY high.

 

Following is an interactive map that seems to point to China as being the number one producer of gold. You have to check the production numbers and compare from one country to the next.

http://www.usfunds.com/interactive/global-gold-mining-production/?CFID=967406&CFTOKEN=24025647

 

Okay...

We have tried money backed with value (gold, silver, etc), and as pointed out, it doesn't work.

We then jumped to FIAT... and it has become obvious that that isn't working because money is debt in this sytem.

So, what's next?
We have to do something!
The economy being based upon the mantra "Consume or Die!" is clearly driving us over a cliff.

Has anyone here watched the 5 video shorts on you-tube titled "Money as Debt"???
If not, look it up and give it a shot.

I would love to hear others' thoughts on the videos.
(Although I think the author is coming at the issue from a 'socialist' point of view, they do a good job of keeping it apolitical.)

 

I think both of these points are extremely valid, and very related.
The government wanted to spend limitless amounts at will, there wasn't enough gold to allow that, so they disconnected the gold from the currency. This allowed them to spend without constraint, and allowed them to do whatever they wished with the gold.
The fact that there are more dollars now than gold could cover without a huge disparity is a direct result, and very matter of factly, sad commentary on the state of our nation.

I don't think the gold standard will work anymore, especially if only a few individual states or countries adopted it again and still expected to trade with the rest of the FIAT world.

But, fact is, we need a new system that doesn't require us to consume resources and take on debt in an ever increasing upward curve.

 

Yeah, i posted this up in the Bullion section last nite. I didn't see in in the coin chat section cuz, i didn't stop here. Sorry...

 

And I thought that California was wierd!

 

You would think the guys on the hill could spend their time on solving other issues that might actually make some change.

 

Do you really believe what you wrote .
rzage

 

Fox News is that bad?
Steve

 

I could be wrong about this, but my understanding is that if someone (let's say the US government) unilaterally declares that gold is worth, let's say, $20,000 USD, then everywhere in the world, that is the price that gold would then cost. If someone, anyone, is willing to pay that kind of money for one ounce of gold, then no one is going to sell their gold to anyone else without receiving that amount of money. Everyone will sell their gold to that person or government. Or, if they sell to someone else, then they are going to want that same amount from them. This, then, sets the worldwide price of gold at whatever highest price someone is willing to pay.

In the above scenario, according to Gresham's Law, everyone would want to own gold, rather than USD, though in my mind that seems opposite of what it might be. The artificially overvalued money (gold) will drive out the artificially undervalued money (USD). But as for me, if I had gold, I would probably sell it for $20,000 USD.

Of course, this is all hypothetical. I've thought a bit about this, and it still doesn't quite make sense in my mind. So, I look forward to your thoughts and thoughts from others regarding these issues.

Thank you.

 

Bottom line is, gold is just as valueless as paper. The value is added by those who are willing to trade things of actual value for it. Otherwise, it's just a hunk of metal.

 

Gold, the States, and Federal Monetary Policy

Another article about states using gold and silver for payment:

http://dailyreckoning.com/gold-the-states-and-federal-monetary-policy/

 

In reading the OP's original link about Utah, it's clear that no one would be stupid enough to pay taxes with gold. However, by making it "legal tender", it eliminates the capital gains tax on the sale of gold...which may be of some passing interest to those of you who hold large amounts of gold bullion.

 

I have news for you, I too am returning to the standard. What I really mean is that I am buying silver and gold with all extra $$$ I have avail.
If you have not noticed, SilverWheaton is at an all time high.
I still feel that physcial holding of PM will be needed in the dark days ahead in our tired Country.
I was in the gun store yesterday and 5 guys came into buy up ammo and tacticle weapons. They all were complaining of how our Countries Leaders were ushering in the downfall of the dollar and giving away our USA, 3 of the 5 were Police Officers and the other 2 were Corrections Officers. What they had to say was blistering to my ears. I also bought $636 worth of ammo yesterday.

God help us if they and the other political/economic predictions are right!