@no1marauder saidYou are repeating propaganda again.
The amount of money in circulation should be based on economic activity, not on how much of a shiny metal a central bank holds.
Anyway, Inflation was quite high at times between FDR suspending the domestic gold standard and the end of the international Breton Woods agreement which set up a dollar-gold standard; for example:
"Inflation, which was 3.1 percent year ov ...[text shortened]... sed by a spike in oil prices because of OPEC and the gold standard couldn't have helped that at all.
The 1979-80 inflation was primarily caused by an increase in the money supply to pay for the expensive Vietnam war. The domestic gold standard has nothing to do with the world reserve currency status. The domestic market was almost all US dollars in a near monopoly of domestic currency back then. Only the international gold standard is relevant in this discussion. Leave FDR out of it. He confiscated gold from Americans to create inflation to fight deflation. Everything was very different back then.
@metal-brain saidI don't think you understand what inflation means.
You are repeating propaganda again.
The 1979-80 inflation was primarily caused by an increase in the money supply to pay for the expensive Vietnam war. The domestic gold standard has nothing to do with the world reserve currency status. The domestic market was almost all US dollars in a near monopoly of domestic currency back then. Only the international gold standard ...[text shortened]... gold from Americans to create inflation to fight deflation. Everything was very different back then.
The Vietnam War was long over before 1979-1980. And Nixon taking the country out of Breton Woods was an anti-inflationary measure.
25 Aug 23
@metal-brain saidIf there is now more more money than gold to cover it… and you return to the gold standard, surely either the gold is then worth less or the money is worth less?
LOL!
The US dollar used to be on the gold standard. That ended because of inflation, not deflation. You have it completely backwards.
Say you have 10x more money than the gold you hold. Either that gold becomes worth 10x less in one go (adjusting gold to the dollar) or the money becomes worth 10x less in one go (adjusting the dollar to the gold)?
I am seriously asking here. It seems logical, but I’m not sure.
@Metal-Brain
There is not enough gold on the planet mined to make a real gold standard.
A REAL gold standard would be I have 20 billion in paper, I want to convert it to gold. If it is a real gold standard, there will be many tons given to that individual but there is not enough ANYWHERE for that to happen.
The US has MAYBE a half tril in gold and we have a 20+ trillion dollar economy.
Good luck getting a gold standard here.
This is not rocket science, it is common sense.
@shavixmir saidYou're correct; any country now imposing a strict gold standard would have to either A) Accept a severe reduction in its money supply or B) Vastly and artificially increase the price of gold. Of course, B would eventually result in A anyway assuming there was free convertibility of the currency for gold (which is a standard feature of the gold standard).
If there is now more more money than gold to cover it… and you return to the gold standard, surely either the gold is then worth less or the money is worth less?
Say you have 10x more money than the gold you hold. Either that gold becomes worth 10x less in one go (adjusting gold to the dollar) or the money becomes worth 10x less in one go (adjusting the dollar to the gold)?
I am seriously asking here. It seems logical, but I’m not sure.
So it's a recipe for a sharp economic contraction, if not a depression.
25 Aug 23
@no1marauder saidIt does not matter how long the war was over. The debt was not over.
I don't think you understand what inflation means.
The Vietnam War was long over before 1979-1980. And Nixon taking the country out of Breton Woods was an anti-inflationary measure.
"Nixon taking the country out of Breton Woods was an anti-inflationary measure."
No, it was not you silly fool. Do you believe every absurd thing you read? It was an avoid converting dollars to gold measure because inflation was already created by increasing the money supply more than could be covered by gold redemption.
Once again you have it completely backwards. Nixon allowed greater inflation by taking us out of BW. It allowed money supply increase without limit, unlimited inflation. Inflation is a tax.
25 Aug 23
@shavixmir saidThe answer all depends on the convertibility ratio and that is determined by people.
If there is now more more money than gold to cover it… and you return to the gold standard, surely either the gold is then worth less or the money is worth less?
Say you have 10x more money than the gold you hold. Either that gold becomes worth 10x less in one go (adjusting gold to the dollar) or the money becomes worth 10x less in one go (adjusting the dollar to the gold)?
I am seriously asking here. It seems logical, but I’m not sure.
Also, I didn't read anything saying gold would be the only thing backing BRICS and BRICS would be a basket of currencies, not just one like the US dollar.
Bitcoin was suggested too. Who said it was only gold? You are assuming again!
https://www.kitco.com/news/2022-08-25/Putin-s-BRICS-new-currency-could-benefit-gold-and-Bitcoin-analysts.html
25 Aug 23
@no1marauder saidBRICS never suggested a strict gold standard. Your post is irrelevant!
You're correct; any country now imposing a strict gold standard would have to either A) Accept a severe reduction in its money supply or B) Vastly and artificially increase the price of gold. Of course, B would eventually result in A anyway assuming there was free convertibility of the currency for gold (which is a standard feature of the gold standard).
So it's a recipe for a sharp economic contraction, if not a depression.
Bitcoin too and a basket of currencies. STOP ASSUMING!
25 Aug 23
@metal-brain saidDude. You are arguing against yourself, again.
Bitcoin was suggested too. Who said it was only gold? You are assuming again!
It's the title of the thread. I was posing a question based on what's already been said in the thread.
Not assuming anything, other than using the information in this thread to draw a conclusion and ask if my drawn conclusion was correct.
If you add extra information, then my conclusion may change, eh?
25 Aug 23
@shavixmir saidNo, you are deluding yourself again.
Dude. You are arguing against yourself, again.
It's the title of the thread. I was posing a question based on what's already been said in the thread.
Not assuming anything, other than using the information in this thread to draw a conclusion and ask if my drawn conclusion was correct.
If you add extra information, then my conclusion may change, eh?
The title of the thread is not absolute gold standard and there never was an absolute gold standard. Coins used to be silver too, not just gold. Quarters used to be 90% silver before 1964.
William Jennings Bryan was against the gold standard, but not all of it.
He still wanted some backing by gold, just not all. He wanted silver too. Bimetallism.
https://en.wikipedia.org/wiki/Cross_of_Gold_speech
There is the solution to a growing economy. Use bitcoin and silver too.
25 Aug 23
@metal-brain saidWho cares what authoritarian humps try to hide under China’s wing. I think you’ll find Saudi and UAE are non committal even though they’ve been invited into Chinas sphere of influence
@kevcvs57
BRICS is growing and will keep growing.
https://www.zerohedge.com/geopolitical/xi-putin-hail-first-brics-expansion-over-decade-two-gulf-oil-powers-join
The only one talking crap is you. This is why the US wants WW3, to eliminate the competition. After all, it is only human life. They think the world is over populated anyway.
As for the rest they can go jump each other
@metal-brain saidTalk about goalpost moving! From the OP:
BRICS never suggested a strict gold standard. Your post is irrelevant!
Bitcoin too and a basket of currencies. STOP ASSUMING!
MB: This is because of competition from BRICS adopting the gold standard.
Anyway, BRICS couldn't agree on any type of new currency and only Brazil discussed the possibility of a BRICS currency in their public statements at the end of the summit:https://www.msn.com/en-us/money/markets/[WORD TOO LONG]/ar-AA1fRE6N?ocid=msedgntp&cvid=eda7111838fe4c608380cdf7e5381fc2&ei=8
28 Aug 23
@metal-brain saidNo sir.
No, you are deluding yourself again.
The title of the thread is not absolute gold standard and there never was an absolute gold standard. Coins used to be silver too, not just gold. Quarters used to be 90% silver before 1964.
William Jennings Bryan was against the gold standard, but not all of it.
He still wanted some backing by gold, just not all. He wanted silver ...[text shortened]... wiki/Cross_of_Gold_speech
There is the solution to a growing economy. Use bitcoin and silver too.
You are changing the facts of the OP, instead of accepting what’s being said to you.
You didn’t mention absolute standard either, would you therefore suggest that it may as well be a fluctuation?
So, not necessarly gold, not necessarily standard.
And therefore, pretty much exactly what we have now. Is this what you are arguing for?
Or are you the only person who is allowed to change the goalposts?
28 Aug 23
@metal-brain saidActually it became the standard, because there was s deal with Saudi Arabia, that oil was to be only bouzght for $...
How do you think the US dollar became the world reserve currency? The gold standard! BRICS wants the gold standard so BRICS can replace the US dollar as the world reserve currency. That is the smart thing to do in the short term.
Would you choose a fiat currency over a gold backed currency?
29 Aug 23
@ponderable saidNo, the Saudi deal was reached to keep demand for the US dollar higher despite going off of the gold standard. In a way the US dollar became backed by oil. Saudi Arabia would not accept any other currency than the US dollar so if people wanted to buy oil they had to obtain US dollars.
Actually it became the standard, because there was s deal with Saudi Arabia, that oil was to be only bouzght for $...