Would you support a return to a gold backed dollar?

Question

Paper currency would still be available for day to day transactions, but the paper would be redeemable in a fixed amount of gold. This would put an end to inflation.

The current fluctuation in the price of gold and silver are because it is not currently used as money by any nation. All of the currencies of the world are fiat money: money by government decree. They have no actual intrinsic value. Their perceived value is deterined by how much is printed by their central bank. The first user of newly printed currency is government. Government benefits by inflating the currency, while everyone else loses purchasing power. Money redeemable in gold will put an end to this.

Answer 1

What was wrong with just letting those who wish to buy gold.. buy gold or silver?

There is not enough gold to back all the fiat money in the world.

Plus governments refused to let any new gold discoveries affect their balance sheets.

But the world populace needs to plant it squarely in their heads that paper money are little promises on pretty green paper whose intrinsic value is nothing.

Give the fiat money enough time and it will most assuredly show that it is worthless.

History proves that most paper money inflates away to nothingness.

Can anyone provide an example of money that became worth more in its lifetime? Not for numismatic reasons either?

Think inflation not deflation. Study past hyperinflations as well as runaway inflation.

Answer 2

I wouldn't support a return to the gold standard. According to my source (see below), going back to the gold standard would still be fiat money as you could never actually own what the money represented (gold bars) unless it was only for jewelry. Also:

1. "The gold standard effectively came to an end in 1933 when President Franklin D. Roosevelt outlawed private gold ownership (except for the purposes of jewelery)."

2. "The stability caused by the gold standard is also the biggest drawback in having one. Exchange rates are not allowed to respond to changing circumstances in countries. A gold standard severely limits the stabilization policies the Federal Reserve can use. Because of these factors, countries with gold standards tend to have severe economic shocks."

The article goes on to say, "Not coincidentally, since the government could not have discretion over monetary policy, unemployment was higher during the gold standard."

Answer 3

It would be nice but the shock of the new values system would cause a meltdown. Imagine explaining the new currency standards and why things may look like they cost less but actually cost more - it would be the death of the Dollar store concept and the return of the 5&10. Unfortunately trying to get people to live realisticly has it's hurdles. I wish you well on this campagain and if I ever see it up on a ballot with a plausible implementation plan - I would support it whole heartedly!

Answer 4

Sure, as long as one can't actually take the dollar for a bit of gold.

The total amount of gold in the ENTIRE world that has been mined would only add up to a block 300 yds X 300 yds so it wouldn't really be possible to bas it on gold.

Also, economic systems generally move FORWARD and not BACKWARDS so it would 'never' work in real practice.

The promise of the United States to cover the value of the dollar is worth a lot more than gold anyhow.

Answer 5

It is not possible to move back to the gold backed dollar. The whole reason for a "green back" is that our government does not own enough gold to cover the currency that is currently in distribution.

Answer 6

Good idea,but a dollar would cost you 100 bucks.....