Russia backs return to Gold Standard

[jeff of pa]

to solve financial crisis
Russia has become the first major country to call for a partial restoration of the Gold Standard to uphold discipline in the world financial system.

http://www.telegraph.co.uk/finance/f...al-crisis.html

[jim4silver]

If other countries start this, and ours follow, start looking for them to make it illegal to own gold !

The price of gold will all of a sudden start to get really cheap. The government buys it all up. Then the government makes the price at what they want it to be for the new currency.

Been done before, and could happen again !

Today is a much different enviroment than 1933. How many people do you know that own gold bullion? None of my friends or family own any bullion, even though I have tried to get them to buy for the last few years.

If the government wants to confiscate gold, they will have to take jewelry because not enough people have bullion to make it worth their while. In 1933 gold was circulating currency and many people owned it, today is way different.

I bet there will be no gold or silver confiscations.

I would be more worried about a 401K or IRA. That is where the big money is.

Jim

[jeff of pa]

not sure myself if it could happen,
but I would think
They would need to make collecting Gold Coins illegal
also. or declair them only worth their face value
and make it illegal to trade them for more then face value.

Biggest problem I see If I Understand
the Gold standard.

The U.S. debt would have to be wiped clean
(Bankruptcy ?) because there isn't enough gold in the world
to cover it's debt. let alone cover everyones money.
not even with all the jewelry out there added.

[utah hunter]

They could just set 1 ounce of gold is $100,000,000 or more(not in todays dollars of course). China gets the shaft for investing in our debt(what were they thinking?), so we give them a chunk of the US to appease them, everybody is happy! I get to decide which chunk(s) we give them though...

Really though, would you lend money(invest in US bonds) to someone who makes $30,000 a year but is in $10,000,000 of UNSECURED debt? Come on now...


Would you invest in a company that has a gross revenue of $100,000 a year, no assets, and owes $15,000,000?

I am throwing out random numbers, but really, is our gov't so much different?


Talk about a bubble that dwarfs any nasdaq, dow, or real estate ever seen. And we still keep printing and the gov't spending more money to expand this bubble, amazing.


DISCLAIMER: it is the middle of the night here and I am in excruciating pain, whatever is said may or may not make any sense come the dawn...

[utah hunter]

Hey Utah,


It's dawn, and it made perfect sense to me !
I heard something as to the lines of $30,000 to $50,000 an ounce to make it work.

Talking about the printing press ! Gee wiz, can't they turn that thing off allready !

It makes sense to me too, that is a relief. Now they want to print money for more gov't programs, and the gov't does so well at eliminating beaurocracy and waste, their track record speaks for itself...

[jeff of pa]

Why not give everyone the right to print their own
money. Save Time

[utah hunter]

Why not give everyone the right to print their own
money. Save Time

What do you think I have been doing in my spare time?

A few months ago I thought it was time to get a roth IRA and buy while stocks are so low, but the way they print money I don't see how the value can go up as fast as the money is going to be devalued in the next few years. I am keeping the money in coins and precious metals instead for now.

[sniffer]

converting to a gold standard isn't the answer. we have to reduce the national debt to improve the value of the dollar.

[jim4silver]

converting to a gold standard isn't the answer. we have to reduce the national debt to improve the value of the dollar.

Actually returning to a gold standard would reduce future national debt. When a currency is fiat, as is ours in the US, they can inflate as much as they want because it is not tied to any particular thing to back it up, such as gold which has a limited supply. If a currency must be backed by gold there would have to be new gold in the vault to back any new currency created.

Our national debt comes from the interest that is owed on all the fiat that is being borrowed from the Fed. A gold standard would not get rid of old debt, but would cut down on new debt. But it will never happen here, and probably no place else. Cause then they could not inflate like many countries are doing today.

Jim

[Bean]

Going back to a gold standard would not be enough (yes it is a 1000 times better than a fiat money system),
But we also need 100% reserve banking.
Without gold backing the money 100% they ( the fed) could still inflate the money supply until we are back in a mess 20 or 30 years down the road.

Bean

[paratrooper]

As I remember the gold standard the gov. was limited to printing money in direct relation to the amount of gold we had to back it up . I think it was Nixon that declared that to be over and said (something to the effect) "We are America and we back the money . If somebody does not have faith in our money they should not take it ." Everyone still took it and continues to this day . Russia can talk their BS but for about a million years the Ruble was considered buttwipe by the world . The big question would be "How much is gold worth ?" it WAS $35 back then when we went off the gold standard . If the govt. wants to go back to that they would simply divide the amount of money in circulation by the # of ounces they currently have . I don't know what the numbers are but I'm sure somebody can come up with them . Problem is as follows . Let's say that the govt. says gold is worth $5 an ounce . Countries with cash will demand the gold . We went through that with China about 40 years ago . We need to stay just as we are . Screw what other countries want or say .

[jeff of pa]

Plus in order to Return to the Gold standard
every Dollar we receive should
be redeamable for gold bullion.

I'd be at the Bank Cashing in
for the next time they go off it

Ca-Ching !

[paratrooper]

Plus in order to Return to the Gold standard
every Dollar we receive should
be redeamable for gold bullion.

I'd be at the Bank Cashing in
for the next time they go off it

Ca-Ching !

When I was prospecting in Alaska back when it was still regulated the hock shop in Anchorage was the place to sell . A fella could get more on the "black market" since China was trying to buy a bunch and break us . ALSO we didn't get the full amount . There was tax and fees . IIRC we got $24 or $28 an ounce . It was a while ago .