Zimbabwe are going to issue gold coins as currency. This is what we want to see. https://www.abc.net.au/news/2022-07-05/zimbabwe-introduced-gold-as-currency/101211098
Cut and paste from facebook Prof Mutambara explains how ZANUPF and its friends are looting public funds using the Gold Coin ponzi scheme. ———————————— The Gold Coin: A Self-enrichment Scheme for the Elites By Professor AGO Mutambara Here is how it works. You take your USD to the parallel market and get RTGS at, say, 1USD to 950. You go and buy the gold coins in RTGS at 1 USD to 441 (the gold coin exchange rate) and immediately make a profit of more than 100%. That is the gold coin arbitrage opportunity. Is this not common sense? It gets worse! For the elites who are connected and have access, you don’t have to involve your hard-earned USD in the first part of the transaction. You take your RTGS to the RBZ and buy the USD at the auction rate, say 320. You take this ill-gotten USD to the parallel market and buy RTGS at 950. That's a profit of 200%. Then you go and buy your gold coins at 100% profit, as explained before. So the potential benefit to the elites (the connected) is as follows: Start with 10 000 USD it becomes 30 0000 USD then it becomes 60 000 USD. From 10k USD to 60k USD. WITH NO PRODUCTION. 500% PROFIT. This is quite a self-enrichment scheme for the elites. Just to clarify: To get started, the elite person takes their 10k USD to the parallel market and buys RTGS at 950. Then they go to the RBZ and buy USD at 320 (auction rate). Then they go back to the parallel market and buy RTGS at 950. Then they go for the gold coins and pay in RTGS. 10k USD to 60k USD. It is shameful.
Zimbabwe has announced they will be replacing their existing fiat currency (ZW) with a gold standard currency (ZiG) backed by a basket of gold and USD: https://www.pmbug.com/threads/zimba...nd-reintroduces-gold-standard.4966/post-98582
You just can't go wrong owning gold, everything is bullish now. Holding USD is a great idea as long as it's still backed by gold. It's currently backed at a $2330 conversion in USD per ounce. It's Brandons gold standard haha.
From the article: They must have a different definition of stability to mine. Fiat based systems (in advanced economies) are stable if we define stability as an absence of variability. In the case of modern economies there is steady long-term inflationary pressure. A number of papers that I've read on gold standards show that they are not stable, with periods of inflation followed by periods of disinflation making it difficult to plan future business investment decisions. Of course that suggests therefore that gold standards or are not a panacea for a nation's economic woes.
That's why you also need free markets. Government managed gold standards always end in disaster because they eventually become manipulated.
Can you elaborate on your model of a gold standard operating in a free market without governments maintaining a monopoly on the issuance of currency?
Some of America's history except when banks or governments issued paper replacements. Our money wasn't always government minted here until they made the laws requiring it but it worked fine too. The money was already around long before and already used in trade. Americans basically piggybacked off what the Spanish had going and slowly took the monopoly here. The government monopoly isn't the problem of course.
