Finally some good news. Utah Considers Return to Gold, Silver Coins

Quote from Askmega:

Of course you are against gold standard. You already said it by calling Utah house idiots.


If you are against gold standard that means you are for current FED controlled fiat standard.

And for that reason I think only the worst about you. :cool:
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You're in good company sir. You and Sarah Palin keep spreading the logic of going back to the gold standard. way to go!
 
Quote from Ghost of Cutten:

If you put a dollar in the bank in 1913, when the Fed was created, its purchasing power today would be only 6% of what it was back then.
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That is an absurd statement. A Dollar put in the bank compounding interest at 90 day T-Bill rates, adjusted for CPI still has about the same purchasing power. I used data from 1931 - 2009:

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How small would a gold coin have to be right now in order for it to be worth a dollar?

I wouldn't buy into this system. I would lose the coins too easily!!
 
Quote from Martinghoul:

Oh no, what should I do now? I don't know if I can continue living with the knowledge that you're out there thinking only the worst about me.
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. . :D . . Aren't you glad thats not your mother-in-law .
 
Butterball,
Could you redo your calculation by comparing:
1$ in the bank with interest compounded after paying taxes on interest each year (the highest marginal tax rate would apply to wealthy people),
with the price of gold ($20 in 1930 -> $1500 in 2011)
The published CPI is no good as it is manipulated downwards,
and taxes on notional (not real value) increases of your deposit
are equivalent to confiscation.

Gold here is just a proxy for purchasing power.
As an asset you lost big in gold as it was confiscated in the midst
of the great depression.
 
The problem with Gold/Silver money or competing currencies is that they would leave very little room for State directed Parasitism of all kinds. Not just "welfare" but also "Warfare" and "crony-finance capitalism" that pilfers wealth to those who most benefit from a manipulated cost of capital and huge amounts of government debt.

I personally think a 100% reserve gold/silver system would be ideal. Not as mandated by the state but as set by the market.
A lack of bank fiduciary "credit" (not backed by savings, in other words 100% reserve) would leave much less room for those who understand the system to pilfer wealth. It would radically stabilize the economy and move capitalism away from the boom/bust cycle.
Speculation would shrink in significance and direct productivity would be more highly rewarded.

Interest rates would likely be extremely low or negative in notional terms because Interest would be paid in by the gradually rising value of the currency itself. Savers would not be forced to speculate in the stock market, and business growth would be stable, making long term planning easier.

It is an interesting idea that requires quite a bit of study to fully understand. However, After studying it for over 15 years I firmly believe it would solve most all of capitalism's problems as the fractional reserve system is THE fundamental Achilles heal of capitalism that creates a world of other problems. Of course it is near impossible to reform precisely because fractional reserve banking/artificial credit is the ultimate pilfering scheme. People get so rich running the system they can buy off anyone who seeks to undo it. The state also hates this idea because more than anyone the state benefits from "flexible" (inflatable) currency. It is all about pilfering wealth.
 
Quote from 1prometheus:

The problem with Gold/Silver money or competing currencies is that they would leave very little room for State directed Parasitism of all kinds. Not just "welfare" but also "Warfare" and "crony-finance capitalism" that pilfers wealth to those who most benefit from a manipulated cost of capital and huge amounts of government debt.

I personally think a 100% reserve gold/silver system would be ideal. Not as mandated by the state but as set by the market.
A lack of bank fiduciary "credit" (not backed by savings, in other words 100% reserve) would leave much less room for those who understand the system to pilfer wealth. It would radically stabilize the economy and move capitalism away from the boom/bust cycle.
Speculation would shrink in significance and direct productivity would be more highly rewarded.

Interest rates would likely be extremely low or negative in notional terms because Interest would be paid in by the gradually rising value of the currency itself. Savers would not be forced to speculate in the stock market, and business growth would be stable, making long term planning easier.

It is an interesting idea that requires quite a bit of study to fully understand. However, Of course it is near impossible to reform precisely because fractional reserve banking/artificial credit is the ultimate pilfering scheme. People get so rich running the system they can buy off anyone who seeks to undo it. The state also hates this idea because more than anyone the state benefits from "flexible" (inflatable) currency. It is all about pilfering wealth.
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Those are interesting ideas, are they correct though?

This is the statement that really caught my eye:

"After studying it for over 15 years I firmly believe it would solve most all of capitalism's problems as the fractional reserve system is THE fundamental Achilles heal of capitalism that creates a world of other problems."

That does not seem right to me, at least on the surface. Wouldn't the fractional reserve system be of great value to capitalists? And wouldn't the existence of competition be its Achilles Heal. After all, capitalists hate competition. I have always thought that capitalism without free competition (as in the U.S.) would eventually self-destruct, but not until the capitalists were rich. So in that perverse sense, if I am right, one might say that lack of competition is the Achilles heal of Capitalism.

In other words, it seems one can argue from either side, and get absolutely nowhere.
 
Quote from 1prometheus:

It would radically stabilize the economy and move capitalism away from the boom/bust cycle.
Speculation would shrink in significance and direct productivity would be more highly rewarded.

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any knowledge of history would make it obvious that this statement is wrong.
 
Quote from Free Thinker:

any knowledge of history would make it obvious that this statement is wrong.
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Insults add no value to the discussion.

Instead, can you point me to the time an economy ran exclusively on a 100% reserve gold/commodity system, and provide some evidence that it was unstable?
 
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