Gold standard

It hasn't been around for a century

I rate it a strong buy

>>1137026
top kek, dont shit post. Its worthless since it been taken off the gold standard
>>1137026
all it means is that own paper money isnt actually back by physical gold that the USA treasury holds. It was a way to artificially boost the economy.
For example: "silver US coins" used to contain actual siver, like 90%. If you ever find a $.50-.05 coins they are worth much more. I think a .50 cent goes for around $4-6 at the moment. To rare to find nowadays.

>>1137054
+1

>>1137026
Fractional reserve banking = bad

>>1137086
>>1137054
Is it a good or bad idea for a country to have a gold reserve? I've been reading some articles where economists say it's obsolete

>>1137178
It IS obsolete.

>>1137180
OK but explain why

>>1137181

He can't, because it's not.

Go watch Meme...I mean Mike Maloney's videos on Youtube.

And Peter Schiff.

Fiat money has no intrinsic value. It's paper. 100% failure rate through all of history.

>>1138184
>Memeloney and Schiff
>Literally Precious Metal shills

Kek

>>1138184
This, money gets its value from faith that people will take it in exchange for goods.

>>1137178
gold is obsolete , but so is fiat. blockchain is the future.

>>1138192
You realize that anon is 100% right though?

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>>1138192
Except they are right...

>>1138198
>I hate fiat
>only because I am a poorfag and have none
>it's the Feds fault that I'm poor

>>1138197
>>>1138184
>This, money gets its value from faith that people will take it in exchange for goods.

That sounds the same as Gold, does it not?

>>1138255
except that gold exists in limited quantity while paper money is printed on cheap materials and can be continuously manufactured.

>>1138258
So?

It doesn't make gold any more liquid able or useful.

Am I suppose to carry around gold flakes to the store with me?

>>1138260
All rare commodities make good barter items, period. Gold is common enough that you can make a currency out of it, while being rare enough that putting more into circulation tends to be difficult.
As others have already mentioned, it also doesn't tarnish. It's also very malleable, so you don't need advanced forges to work with it, yet it's still solid enough that it doesn't just come apart on you, and it can be combined with other metals to increase it's durability if needed.
Modern day it's actually become extremely useful as a super conductor, but it's always been useful for exactly what it is, a representation of assets. Far better than the fiat currency scams we've allowed to exist in the world.
Jews know money. It's what they've worshiped for millennia. They are filthy pieces of shit, but it's always worth taking note of their opinions on matters that they have developed an expertise on. That doesn't mean you follow their ways, but rejecting any concept that they have is foolish, especially if it is proven to work. Jews abuse and usurp with fiat currency, but meanwhile they hoard gold.
Gold is a good asset. If shit hits the fan, it may become of dubious value to you, but even then people may still trade you things for it if they can spare it. More over, eventually if and when things got built back up, gold would return to use, because it has intrinsic value as a rare barter item to use in transactions. Do some research fagit

>>1138239

good argument

>>1138260
am I supposed to store my wealth in pieces of paper that can be printed freely?

>>1138275
>>>1138260 (You)
>am I supposed to store my wealth in pieces of paper that can be printed freely?

No you are suppose to store it in index funds.

>>1138271
I was reading until you started mentioning Jews.

>>>/pol/
>>>/x/
>>>/stormfront/

Stay poor.

Try to pay your taxes without USD.

When your in prison or have all your assets seized by the government, you can tell them that paper money has no value so they should let you off.

Without a gold standard and under the current system, Congress raises money by authorizing the issuance of treasury bonds, which are sold at bond auction. Treasury bonds are a promise to repay with interest. In other words, under the current system, government borrows against the future to pay for things today.

This is the main problem with not having a gold standard. When we don't have enough money we create some by promising to repay even more fucking money (the thing we don't have) at some point in the future. It's exactly as absurd as it sounds.

There are a lot of secondary problems with this system. For one, how exactly does government pay the treasury bond coupon if it has no money? That's where you come in. When you pay taxes, the IRS remits that money to the federal reserve which uses it to pay back the bond holders. So when you hear numbers like "the US is 13 trillion dollars in debt", that money isn't owed to China. Only a small amount is actually owed to China. That amount is owed to you, the taxpayer. Because you're the one paying interest on the government-issued treasury bonds.

This is called a fiat currency. It's money that has no intrinsic value. A $20 bill is worth $20 because the government says it's worth $20. The government legislates that businesses in the US must accept these notes for repayment of debt and that's why it's worth $20.

The main problem with this fiat currency is it can only be issued by creating more debt. Debt the public has to pay off. Debt the public has to pay off with the same fiat currency that has no intrinsic value.

The gold standard on the other hand requires the value of a paper note to be tied to a physical amount of gold. You can't create currency on a gold standard out of thin air short of going out and actually mining more gold (which of course will cost money). The reason money backed by a gold standard has intrinsic value is because of the relative scarcity of gold.

>>1138278
U don't even hide the fact that you are jewish.

Please go to >>>/r/eddit

>>1138328
>Without a gold standard and under the current system, Congress raises money by authorizing the issuance of treasury bonds, which are sold at bond auction.
They do this regardless of whether it's fiat or specie. The US Treasury has been raising bonds for literally over 200 years, mostly to pay for wars.

>It's exactly as absurd as it sounds.
This is a massive simplification of monetary policy, and no it really isn't that absurd. Money is just a unit of account after all.

>This is called a fiat currency. It's money that has no intrinsic value.
As opposed to the "real" value created by hoarding a shiny metal? At the end of the day, the value of everything is ultimately arbitrary and dependent on people's needs and preferences. Gold is useful in industrial applications but that's not why people obsess over it.

Intrinsic value isn't necessary to the functioning of a currency. Its intrinsic value IS in its ability to be exchanged by definition.

>A $20 bill is worth $20 because the government says it's worth $20.
And a pound of gold is worth one pound of gold because it's one pound of gold.

>The gold standard on the other hand requires the value of a paper note to be tied to a physical amount of gold. You can't create currency on a gold standard out of thin air short of going out and actually mining more gold (which of course will cost money). The reason money backed by a gold standard has intrinsic value is because of the relative scarcity of gold.
There's only so much gold in the world. If you want to increase your money supply, you have to either find new sources of gold through mining, plunder, or conquest, or you have to debase the currency every so often anyway. Otherwise you are stuck in deflationary hell. And gold markets have volatility and price shocks that change with supply and demand, so you are basically tying the value of your currency to a financial rollercoaster.

>>1138441
Mike Maloney btfo

>>1138442
Actually Maloney is still 100% right.
https://youtu.be/DyV0OfU3-FU

Anon on 4chan- 0
Maloney- 1

>>1138449
Refute his points then

>>1138328
>This is called a fiat currency. It's money that has no intrinsic value. A $20 bill is worth $20 because the government says it's worth $20. The government legislates that businesses in the US must accept these notes for repayment of debt and that's why it's worth $20.

It's the same issue with gold, though. Gold is *not* monetized and has no intrinsic worth outside being a manufacturing material. Any monetization of it requires the same faith in currency that paper money does. Take a gold gram bar to Target, and try to buy a DVD. Does it work? No, it doesn't because gold is NOT money. Gold can be money, has been money in the past, but is not money (and lets avoid the pedantic "some gold coins have a face value" argument. Nobody in their right goddamn mind is going to take a modern Eagle into a store and use it for $50 in cash.)

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>>1138620

It's not just about manufacturing applications, the fact that there's a limited supply is part of what makes it fundamentally functionally superior over just printing fuckin paper.

America moving onto the gold standard would be hilarious, the US national debt is $19.3 trillion.

I look forward to mandarins showing up at the newly minted federal gold window and building a giant gold-plated statue of Mao from their gold dollars

>>1139430
>the fact that there's a limited supply is part of what makes it fundamentally functionally superior over just printing fuckin paper.
so trees are infinite now?
we dont have to save the rainforest?
where is this endless forest you speak of? have you informed the public of this great discovery?
global warming is a hoax afterall?

What about the Nazi currency? From my understanding, it's the opposite of FIAT, with citizens being paid credit from work they've already done. What are the pros and cons?

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>>1141648

>he thinks you can grow gold

know any good gold seed dealers, you dumb, strawmanning smart assed cunt?

>>1137026
It went away because lolwarbudget. Governments printed money like mad to fund their armies.

>>1141854

>Not synthesizing gold with meme magicks

>>1141854
I never said gold was infinite, i merely stated that "paper" money was not

you may procede with your roast boiiy

friendly reminder anyone who is still pinning for the old days of the gold standard is living in the past, enjoy being poor because the world isnt "fair"

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Please review the size of the global markets relative to the gold markets.

Currently we are suffering from massive global deflationary effects.

More and More people are born every day. you'd have to divides all the gold between them to get transactions done.

Also its easy to horde gold and remove it from the money supply.
With a fiat currency undergoing inflation. Money must be moved and transacted with to maintain relative wealth.

When the magna carta was signed and central banks devised it meant an end to tyrants and warlords full consolidation of power and wealth.

A gold standard is just a self-imposed constraint on spending. If you think spending less is a good thing than the gold standard would be a good thing. Legally only allowing gold backed currencies to circulate would decrease commerce since commerce would be tied to the gold supply.

The ability to create money out of thin air means you can mobilize labour and resources as you please therefore everything that is technically feasible is financially feasible when you remove the legal necessity of holding reserves.

The question is who is legally allowed to create money out of thin air? How the creation and handing out of money is handled matters.

Most spending today just goes towards inflating asset values because of the way money creation is handled. Money that is created out of thin air should flow into real investments instead of being handed out to banks to lend out at interest to consumers and speculators.

Some form of mutual credit system is the best alternative that I can think of:
https://en.wikipedia.org/wiki/Mutual_credit

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>enter thread
>see all of these pseudo explanations for the gold standard
>all of these YouTube fringe videos about fiat money
>obligatory shilling for crypto
>Abolish the fed kiddies gonna abolish the fed
>People crying over the dead gold standard
>Extremely fringe positions mostly debunked or strongly weighed against by our understanding of economics presented as though they were canon to understanding Econ

Oddly this is why I love the Internet. You would never be able to find this many contrarians taking oddball positions irl.

>>1139430
>>1139430
>It's not just about manufacturing applications, the fact that there's a limited supply is part of what makes it fundamentally functionally superior over just printing fuckin paper.
> the fact that there's a limited supply is part of what makes it fundamentally functionally superior


>fundamentally functionally superior
>limited supply
Choose one. If you object, please elaborate on how you're going to counter massive, crushing deflation caused by your gold-run financial system?

>>1142436
The gold standard would tie money creation to an aspect of the real economy [gold production]. To expand the monetary supply you would need to physically produce more gold. To do this you need to employee people and purchase the machinery and such and obviously this would be great for gold producers and their employees.

Having some form of connection between the real economy and money creation would be a good idea but I don't see why gold in particular would be the answer. There would be a bigger incentive for individuals to hold gold in hoards (unlike inflationary cash) as a store of value instead of actually circulating it. It would be nice that when you're creating money you are also boosting the real economy somehow. It would be neater to back your currency by infrastructure or something that would raise the general wealth creating ability of your economy.

>>1142476
> To expand the monetary supply you would need to physically produce more gold.
Gold cannot be produced ad infinitum. Hence the deflationary problem persists.

>>1142515
Literally noting physical can be produced infinitely. Different types of physical goods just have different theoretical limitations obviously.

Only legal claims on wealth can accumulate indefinitely without no physical limitations. Having a monetary system that deals in compound interest and has no physical connection to reality creates the illusion that you can have infinite growth by just inflating asset values.