Why have so many been indoctrinated into thinking the gold standard was a bad money system?

Question

Who here escaped the government's propaganda, did their own research and found out there is nothing wrong with the gold standard?

I guess when this nonsense is spewed in college textbook's mindless dolts believe everything they read.

Additional Details

bob that is a common fallacy

the amount of gold does not matter

there is more than enough gold

remember that dollars were not priced in gold, they were defined by the weight of gold

hambone, we won't go back to that old definition

because there is more paper we will just have redefine the weight

before 20 ounces was a dollar, maybe in our world 20 ounces could be 100 dollars

Answer 1

Best Answer - Chosen by Asker

More and more people are waking up to the fact that coming off the gold standard was a power grab by big government/federal reserve powers.

Bob, that's not the way it works. The gold standard is generally a fractional system. It doesn't matter how much gold we have it's merely pinning a demonstrable value to the currency. We can say that one dollar is worth .0000000000000001 ounces of gold (or even a fraction of that). The point is that the Fed and the government cannot simply choose to print money without changing the fractional value.

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Asker's Comment:

right on

Answer 2

gold backed currency is the strongest, and we dont have enough to back the currency in circulation, but if we had stayed with the gold standard we wouldnt have system of soaring inflation, which throws things way out of balance. everything would have to be in proportion so that we couldnt be charged outragous prices for ridiculous things.

with the current system your groceries are going threw the roof.(probably 10% a year, but gov. satistics and independent research never coincide) consumer products seldom go down. gas and energy hikes, new taxes added constantly. but do you get a 10 percent raise at work every year? teachers got their pay cut from, not enough to unacceptable.

a better example
if you borrowed $100,000 in 1980 to buy a house at 5% for 20 years, you are agreeing to pay back $200,000 in 20 yrs. lets say inflation is 3.5% per year (im sure its higher now). thats 70% in 20 yrs that means $100 today will only buy what $30 would buy then. 100 /30 = 3.33 so you are paying 3 times as much for stuff now as 1980. although you still only pay back 200,000 to the bank, the burden is, its three times as hard to come up with that amount

the system of credit we use now is designed to keep us in debt and will one day lead to a revolt.

the gold stadard stays balanced and there could be no huge division in class. it keeps the rich from getting to rich and the poor from getting to poor which is why they changed it. to get richer and make us poorer so they can have the power.

addition 8:30 pm
sweetgirl is right we absolutely could go back to the gold standard. the entire system would just have to be redone. you have to forget about how much money is in the system now, that wouldnt matter because it would be null & void. it couldnt be done in a day, but absolutely possible.

The Credit Theory
when you give the central bank the power to make money and they dont use something to back the money, and create a system of credit, they automatically have a nation of slaves working for them.

we all must realize that every dollar this bank then gives to a country, is loaned to them at interest. so lets say they pay their debt back, how do they pay the interest? the country must borrow more money, again loaned at interest. and since the central bank is the only one allowed to issue money all of it comes from them, each time putting the country deeper into debt. so how does this country payoff its debt? THEY CANT! it is impossible!

if the system was done right prices wouldnt be so high that you needed to borrow money for everything. prices would be proportional to wages .

Answer 3

Bob is the perfect example of the misunderstanding.

People have lived for soo long with inflation that they don't understand deflation and that a money supply chasing a finite commodity means that over time you will buy more for less money.

It might even mean that your pocket change actually becomes relevant again. I can't even remember the last time a penny, nickel, or quarter even had any real buying power.

Answer 4

we got away from the gold standard to ease up on credit, so people could barrow and pay back later. not to mention back in the day you could walk into a bank and trade currency for gold and we just cant do that in todays economics. theres not enough gold in the world for that

Source(s):

things werent better 150 years ago, believe me

Answer 5

Gold backed currency is the strongest in the world, the problem is we don't have near enough gold to back all the currency we use. If we went back on the gold standard, there would be a revolt, because most of the US currency would instantly become worthless.

Answer 6

The gold standard was a great system (for the time). A $20 gold piece was worth just that, $20. Really can't go back to it now because of the price of gold and the total amount of paper bills around. Sucks.