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Gold Silver Money - Politics, Business, Civil, History - Posted: 25th Mar, 2006 - 7:21pm
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Gold Or Silver For Money?
Really, each note you use, should in fact refer back to actual gold or silver you can ask for on demand, but of course that only works in theory since most world governments can basically choose to print as much money (paper) as they wish without having to give you anything thus causing inflation. The safest way to buy and not loose value is gold and silver. Will you be willing to live in an economy where all items are bought based on the two metals rather than notes?
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Money Silver Gold
I hope we don't revert to using metals as tenure instead of notes; just seems that would be going backwards instead of forwards. Then we will be drawn into the gold rushes that occurred in the early part of the century and that wont be a pretty sight. The fact that we are printing notes without the backing of it is why most countries have such a large deficit. This is just a part of our daily existence now in my opinion and something we will have to live with. I don't expect the deficit in the US to ever be overcome in my lifetime, but I don't think it will force the country to the point of doing away with paper money.
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Post Date: 18th Nov, 2005 - 3:30pm / Post ID: #
NOTE: News [?]
Gold Or Silver For Money? History & Civil Business Politics
GOLD AT 18-YEAR HIGH; UP $18 US IN 2 DAYS
The price of gold set an 18-year high Thursday on speculation the precious metal will continue to rise.
Ref. https://www.cbc.ca/story/business/national/...old-051117.html
Money Silver Gold
John Kennedy attempted to reassert actual Federal government control of the currency from the misnamed Federal Reserve before he was assassinated, currency issued by the US Government and to be backed by actual silver or gold. Executive Order 11110.
https://www.john-f-kennedy.net/thefederalreserve.htm
| QUOTE |
| The privately owned Federal Reserve (FED) banks actually issue (create) the "money" we use. In 1964, the House Committee on Banking and Currency, Subcommittee on Domestic Finance, at the second session of the 88th Congress, put out a study entitled Money Facts which contains a good description of what the FED is: "The Federal Reserve is a total money-making machine. It can issue money or checks. And it never has a problem of making its checks good because it can obtain the $5 and $10 bills necessary to cover its check simply by asking the Treasury Department's Bureau of Engraving to print them". Any one person or any closely knit group who has a lot of money has a lot of power. Now imagine a group of people who have the power to create money. Imagine the power these people would have. This is exactly what the privately owned FED is! No man did more to expose the power of the FED than Louis T. McFadden, who was the Chairman of the House Banking Committee back in the 1930s. In describing the FED, he remarked in the Congressional Record, House pages 1295 and 1296 on June 10, 1932: "Mr. Chairman, we have in this country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board and the Federal reserve banks. The Federal Reserve Board, a Government Board, has cheated the Government of the United States and he people of the United States out of enough money to pay the national debt. The depredations and the iniquities of the Federal Reserve Board and the Federal reserve banks acting together have cost this country enough money to pay the national debt several times over. This evil institution has impoverished and ruined the people of the United States; has bankrupted itself, and has practically bankrupted our Government. It has done this through the maladministration of that law by which the Federal Reserve Board, and through the corrupt practices of the moneyed vultures who control it". |
And this little gem:
| QUOTE |
| Kennedy knew that if the silver-backed United States Notes were widely circulated, they would have eliminated the demand for Federal Reserve Notes. This is a very simple matter of economics. The USN was backed by silver and the FRN was not backed by anything of intrinsic value. Executive Order 11110 should have prevented the national debt from reaching its current level (virtually all of the nearly $9 trillion in federal debt has been created since 1963) if LBJ or any subsequent President were to enforce it. It would have almost immediately given the U.S. Government the ability to repay its debt without going to the private Federal Reserve Banks and being charged interest to create new "money". Executive Order 11110 gave the U.S.A. the ability to, once again, create its own money backed by silver and realm value worth something. Again, according to our own research, just five months after Kennedy was assassinated, no more of the Series 1958 "Silver Certificates" were issued either, and they were subsequently removed from circulation. |
It's called "fiat money" because it's based on an idea, not based on any real value. And, interestingly enough, every civilization that has based its currency on fiat money has been destroyed. Rome is one example that comes to mind. Here is more about fiat money: https://www.thundercapital.com/article_fiat.htm
Edited: FarSeer on 5th Mar, 2006 - 5:01amInternational Level: Ambassador / Political Participation: 595 59.5%
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Here is another viewpoint in favor of the gold standard, from Ludwig von Mises, famed Austrian economist and Libertarian. From the Mises website:
| QUOTE |
| In his monetary theory, Mises revived the long forgotten British Currency School principle, prominent until the 1850s, that society does not at all benefit from any increase in the money supply, that increased money and bank credit only causes inflation and business cycles, and that therefore government policy should maintain the equivalent of a 100 percent gold standard. |
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Gold Or Silver For Money?
Still think the dollar will always be the most powerful money? Think again.
| QUOTE |
| China's gold reserves double in value By Peter Klinger CHINA has put Gordon Brown's investment philosophy to shame by enjoying a near-doubling of the value of its gold reserves. The People's Republic has gold reserves worth $10.8 billion (£6.2 billion), based on yesterday's $558.60 gold fix in London, compared with about $6.6 billion at the end of 2002, when China last increased its stake. The Chinese central bank holds 600 tonnes of gold, according to new figures from the World Gold Council, the gold industry's marketing arm. China almost doubled its gold reserves to the 600 tonne level between 2000 and 2002, at a time when the the Chancellor was a bullion seller. British taxpayers missed out on £3.6 billion (£2.1 billion) worth of gold profits because Mr Brown sold most of the country's reserves during the 1998-2002 gold price slump. Mr Brown's dismal record is matched only by his counterparts in Switzerland and the Netherlands, which have been among the most active sellers of gold over the past five years. Switzerland's decision to sell 908.3 tonnes of gold between January 2002 and March 2005 has cost it about $8 billion in forgone profits. Its central bank will argue that the sell-off was part of a strategy to diversify its foreign reserves. Unlike Britain, Switzerland still has a sizeable gold holding of 1,290 tonnes, worth $23.1 billion. China's fiscal leaders, on the other hand, held on to their bullion investment. In the late 1990s and early 2000s, the gold price was at its lowest level in 20 years, but it has since recovered to trade near 25-year highs. The surging price of gold has been driven by uncertainty about the state of the American economy and by booming demand for jewellery. |
https://business.timesonline.co.uk/article/...2102426,00.html
China is obviously "playing the long game" and keeping real power behind their currency by backing it with gold.
America also has gold reserves (in excess of China's), but these are not used as backing for our currency. Wonder what it will be used for?
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It really makes you wonder why the US is not backing the dollar with its gold reserves. Wouldn't that help the value of the dollar and also increase its buying potential in international markets?
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I believe the reason the US government does not use its gold (or silver) reserves as backing for its currency is that it would make it impossible to do what is being done now: creating paper money essentially at will, with no accounting for any value. US Federal Reserve Notes (and you do know that the Fed Reserve is not a part of the US government, right?) are not backed by any value whatsoever but a promise, and as long as that is the case, the paper can be printed by the truckload (and is) to provide circulating cash whenever it's needed -- or whenever the Fed Reserve wishes to tweak the economy.
| Offtopic but, Just recently, the Fed Reserve stopped issuing a specific public monetary report called the M3 which is supposed to measure paper inflation. Now, why would they do that? Because there is too much of it out there, and they can't defend it. |
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TOPIC: Gold Or Silver For Money?