Photo of proposed (World currency)

[Gettintoknowsomethin]

At the G-8 meeting last week each of the world leaders were presented with 4 GOLD COINS each were valued at $3900. I think the future of money is on the way! Just when you thought the U.S. banking system had regained its footing, the reality is that a carefully woven federal-government PR campaign may actually be masking the next phase of the worst financial crisis since the Great Depression.

Indeed, it's what's just out of sight that has some analysts and economists scared to death. (GOT GOLD?)
http://news.yahoo.com/s/ap/20090708/ap_on_re_eu/g8_summit_gifts

 

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[Gettintoknowsomethin]

I would say that Government talking heads are trying to keep the lid on the monetary system. Experts they might be, but not in running a business. They have no idea about the deadly sin of spending more than you have, and printing money to cover the deficit. We ultimately pay for the greed of their ways. Corruption in America and other countries is now out in the open.
Gold is expensive and silver could be the "new gold " .
If inflation hits , many have never really seen what happens ! If you tax in a recession that is where you will stay.
The Goverment will not give up the massive bureaucracy,and do what we can to defend our people according to Constitutional Law ! They will wring every dollar from those who have it. Gold and silver could be the answer as they start to spend this Stimulus ( TAX ) that we will pay on for a geneations to come and make little head way.
People do not have money to buy gold or put away savings if they are a family of four plus. For some the Government will be a way out for now but will be a regrete of a lifetime.
If you have cash in excess, 10% in PMs would be good. More if you can afford it. Having spent all our money does not bode well for the future and there are few ways to find a safe haven for cash.
Cap and trade is a tax, health care is a tax, and not bridging to new energy in an evoluionary way is a tax.
You can not tax your way out of this mess.
The old, your parents and grandparents will suffer with cap and trade and restricted healthcare.
The country wants young well educated high earners. They will pay higher taxes.
Gold and silver are not an idea, but could be the only idea that can keep you afloat.

 

[Gettintoknowsomethin]

Here is the coin given to Obama

 

[RON (PA)]

I think that going to a world coin would be a huge, huge, mistake. I would eliminate the exchange rates. This cannot happen.

 

[airborne1092]

It's too bad more politicians aren't economists.

 

[Gettintoknowsomethin]

I think that going to a world coin would be a huge, huge, mistake. I would eliminate the exchange rates. This cannot happen.

It would only be a mistake if you didnt own any gold or silver before the big dollar crash!

 

[jim4silver]

I think that going to a world coin would be a huge, huge, mistake. I would eliminate the exchange rates. This cannot happen.

Although I am a big fan of silver and gold, I don't ever see a currency made of silver or gold circulate as currency in the future. For one, there is not enough of the metals to go around, so that the currency itself would be worth too much per coin. For example, 1/10 ounce gold bullion is worth about 100 bucks each now, and they are minuscule little coins.

It could be that a future currency is backed by gold or silver. If that ever happened it would seem that the value of gold and silver would go way up since there are so many fiat dollars floating around and only so much gold and silver to back them.

However, any currency backed by something like gold or silver would be difficult to inflate because presumably there would have to be a certain amount of the commodity in storage to back up the paper money in circulation. I am not so sure we are at a point where countries are not in favor of inflating.

PS I don't think we will ever get to a "barter" society where people are trading gold and silver for things. Not enough people have gold and silver to barter with. Although I think things might get much worse economically in the next few years, I don't think it will get so bad that the dollar will become completely worthless, since all currencies are fiat these days. At least I hope it doesn't that bad.


Jim

 

[oneeye]

Would you accept being paid in this "new world currency"? I will not.

 

[snake35]

If the government changes to a new currency what do you do? Not pay your bills? I am sure not everyone wanted the Euro, but the powers that be demonetized the old currency. I do not want an "Amero" either. I just do not know how to stop it.

 

[Cappy Z.]

Intelligent people ask: So what's the point of the post?

 

[Gettintoknowsomethin]

Would you accept being paid in this "new world currency"? I will not.

If the payment was gold like the coin shown YES I WOULD TAKE IT FOR PAYMENT !

 

[jim4silver]

Would you accept being paid in this "new world currency"? I will not.

If the payment was gold like the coin shown YES I WOULD TAKE IT FOR PAYMENT !

This is all moot in that there will never be a new currency made of physical gold or silver, at least not one that could be spent among people in everyday transactions.

For one, gold is too valuable to be practical. A small 1/10 ounce coin is worth over $100. And if you believe the silver pundits, there is not enough silver left above ground these days. Thus, to start minting a new coin from silver for circulation would not be practical, unless it was symbolic and paper currency still circulated right along with it.

Also, there are too many fiat dollars of all types floating around out there for a one to one conversion to a metal currency. Perhaps if there was a major devaluation in the value of the fiat, it could reach a point where it was fiscally possible to allow a transfer from paper to metals, but again you would be faced with the problems above such as the amount of metals available for minting. It even seems that for the past couple of years the US Mint has had supply problems getting silver blanks to make enough Silver Eagles to meet consumer demand.

The only possible way to infuse metals (pun intended) into a currency system would be if a country or group of countries came out with a new paper currency backed by metals or other commodities. I am not saying I believe this will happen anytime soon, but there has been some talk in the news from certain foreign countries who want a new currency backed by some type of "basket of commodities", which could include gold and silver perhaps.

Any new such currency would be bad news for any fiat currency because common logic would dictate that it would be much safer to have your currency backed by something like gold or silver as opposed to fiat currency. Thus, I would anticipate that any proposals for such a commodity backed currency would be opposed strongly by most countries, especially those who trade is Euros and dollars, etc.

Although I am a big fan of gold and silver, I hope there is no new currency nor a dollar collapse, since both my own (to a small extent) and most all of my friends' and relatives' property are in dollar-type assets, and I don't want to see them lose what they have.

Jim