US to Gold Standard After 2012 Election

[Karlis]

"We will return to a gold standard. It will be a modernized version of it but in essence, it'll be the basic principle that the dollar will remain constant with gold," Forbes tells Newsmax.TV in an exclusive interview. Read more...

The U.S. abandoned the gold standard, which bases the value of the dollar to gold, in 1971.

Today, currencies are valued in relation to one another, normally set by foreign exchange rates.

[Ashotep]

Hope it doesn't devalue the dollar so much that a loaf of bread costs $10.00.

[Karlis]

Hope it doesn't devalue the dollar so much that a loaf of bread costs $10.00.

Hilander, how can tying the dollar to a tangible asset, devalue the dollar?

As I see it, what devalues the dollar, so that "possibly" a loaf of bread may cost $10:00 in the future, would be printing and issuing into circulation more, and more, and more dollars ... paper dollars that have no tangible backing.

[portraitartist]

Hilander, how can tying the dollar to a tangible asset, devalue the dollar?

As I see it, what devalues the dollar, so that "possibly" a loaf of bread may cost $10:00 in the future, would be printing and issuing into circulation more, and more, and more dollars ... paper dollars that have no tangible backing.

It may not be long before our dollar is worth nothing. You do not even want to get me started on my disappointment with our monetery system. I hope the world dosn't blame the ordinary people of the U.S. for the decisions made by a few of the people in our government. Long have I and my family defended this country and our allies, and we still will, but do I agree with what's going on? I don't even want to go there.

[BlindMessiah]

There isn't a single gold backed currency on the planet. We certainly are not going to return our currency to one. This is just a political hit piece on Bernanke.

I don't really care if Steve Forbes claims we're going to do this. He gave a time line of five years. I say no way. Time will tell.

Edited September 1, 2011 by BlindMessiah

[Karlis]

There isn't a single gold backed currency on the planet. We certainly are not going to return our currency to one. This is just a political hit piece on Bernanke.

I don't really care if Steve Forbes claims we're going to do this. He gave a time line of five years. I say no way. Time will tell.

It's interesting to consider whether a commercial coupon in a local Newspaper, which offers to redeem that coupon for (say) a hamburger, has more value than a dollar note?

[runekazter]

with our debt ........we would have no gold left and would owe a lot of it ................just like the present situation.......

[Karlis]

with our debt ........we would have no gold left and would owe a lot of it ................just like the present situation.......

runekazter, unless you explain your reasoning with specific details, your statement doesnot make any sense, in my opinion.

[questionmark]

runekazter, unless you explain your reasoning with specific details, your statement doesnot make any sense, in my opinion.

That would be quite simple, the US has about (give or take an ounce or two) 8,133.5tonnes of gold, or ( 8,133.5 x 32150.746 Oz) 261,482,000 ounces, even at the disproportionate price gold is right now that would hardly be enough to pay this years deficit. So the value of the dollar would have to sink through the floor.

[WoIverine]

Hope it doesn't devalue the dollar so much that a loaf of bread costs $10.00.

Haha, or a "days wages", as was prophesied.

Side Note: I just bought a bunch of fruit, on the way to the car I looked at the receipt and realized a 3lb bag of cherries was $9.59!

Side Note 2: Who was the Presidential Candidate that said we should've returned to the gold standard a long time ago? People think he's crazy and "unelectable" though. *shrug*

Side Note 3: Look for the media to not give any credit where it's due, to this.

Edited September 1, 2011 by Spid3rCyd3

[Karlis]

That would be quite simple, the US has about (give or take an ounce or two) 8,133.5tonnes of gold, or ( 8,133.5 x 32150.746 Oz) 261,482,000 ounces, even at the disproportionate price gold is right now that would hardly be enough to pay this years deficit. So the value of the dollar would have to sink through the floor.

The "value"of the dollar is close to zero now.

Pegged to precious metals such as gold,silver, etc., the dollar would have value.

[WoIverine]

Guns, food, gold, the currency of tomorrow.

Could probly throw sex, drugs, rock'n roll somewhere in there too.

Some people apparently can't take a joke. Meh.

Edited September 1, 2011 by Spid3rCyd3

[Karlis]

Guns, food, gold, the currency of tomorrow.

Could probly throw sex, drugs, rock'n roll somewhere in there too.

Please let us stay with sensible posts.

If anyone feels that barter is about to replace the dollar, please post accordingly.

Thanks

Karlis -- moderator team member

[+DieChecker]

That would be quite simple, the US has about (give or take an ounce or two) 8,133.5tonnes of gold, or ( 8,133.5 x 32150.746 Oz) 261,482,000 ounces, even at the disproportionate price gold is right now that would hardly be enough to pay this years deficit. So the value of the dollar would have to sink through the floor.

I agree with Questionmark here. No way is pegging the US Dollar to a gold standard going to be a Good idea. Not unless we can get our hands on a LOT more gold. This is not D&D here people, we can't get the Dwarves to just dig more up, or convert iron into gold.

[BlindMessiah]

Haha, or a "days wages", as was prophesied.

Side Note: I just bought a bunch of fruit, on the way to the car I looked at the receipt and realized a 3lb bag of cherries was $9.59!

Side Note 2: Who was the Presidential Candidate that said we should've returned to the gold standard a long time ago? People think he's crazy and "unelectable" though. *shrug*

Side Note 3: Look for the media to not give any credit where it's due, to this.

I certainly hope you don't make ten dollars in a days wages. Yeah, cherries are very expensive.

People called Ron Paul crazy for the same reasons they're going to call Steve Forbes crazy.

I'm sure you're right in the sense that Forbes will get a lot more media attention than Paul over this. It's to be expected though as he's a part of the media.

[BlindMessiah]

I agree with Questionmark here. No way is pegging the US Dollar to a gold standard going to be a Good idea. Not unless we can get our hands on a LOT more gold. This is not D&D here people, we can't get the Dwarves to just dig more up, or convert iron into gold.

If we could put D&D players to work Obama would have solved the most statically unemployed segment of society for the past few decades.

[ninjadude]

Steve Forbes and the rest of the gold bugs are indeed very insane.

[questionmark]

I agree with Questionmark here. No way is pegging the US Dollar to a gold standard going to be a Good idea. Not unless we can get our hands on a LOT more gold. This is not D&D here people, we can't get the Dwarves to just dig more up, or convert iron into gold.

The problem here is that there are only about 1600 tonnes mined world-wide a year. 1000 tons of that are consumed by India to make jewelry,about another 100 for industrial purposes and other countries jewelry that leaves 400 tons.... that is hardly enough to pay the DOD.

This one is back to the drawing board.