But our currency is redeemable in gold today. I can take fiat and redeem it in gold at any time. So just by the government saying its redeemable doesn't really change anything if 95% of people will never touch it.
No you cannot. You buy gold. Like a commodity. At a fluctuating 'price' Redeemable is the gold is the money and the paper notes are representations of it. Having it gold backed is putting trust in the governments to maintain that rate. Making it redeemable means I can go to the bank, hand over my notes and exchange it for gold today, tomorrow, 5 years from now at $5,000 an oz or whatever price it needs to be set at. This distinction is integral to it working. Otherwise as you have alluded to, they will just fudge the numbers and go off gold in another 50 years when it is conveinent and have spent too much for the currency to ever be backed by that much gold at that price again.
Not a fan of the Gold Standard. Or at least the old Gold Standard. Well, I guess it depends which Gold Standard we are talking about. Another Bretton Woods style standard would just break down. Pre WW2, countries like the UK set the price of Gold at the wrong level with drastic consequences. Can the govt ever get the price right? And what about the temptation to print more than they have gold? That will still be there and they will still have the power to do so. I think money ultimately needs to be taken out of the hands of the government. It needs to be private enterprise, subject to competition just like other commodities (money is just another commodity). That way we can get the best money possible, where we are free to choose. But then, what would we need the govt for? EDIT: ultimately I would foresee a global standard emerging, through ISO or whatever, as what happens with so many other things. Companies that produce the money are then free to use the standard or not but most will choose to as it is more convenient for their customers. Just like HTML is an internet standard but no-one is being forced to follow it.
umm central banks are private enterprises and money printed between them does compete?!? Usury is the issue, usury give reason to print more and more money to get more and more usury. But really human nature or more specifically human greed is the real issue and there is only 2 cures for that and no one wants either
Not even the Fed can be considered private. It is quasi-private at best. The problem with it and all other central banks is that they have governmental powers. Without govt power they would be nothing. They would be unable to extract taxpayer funds, except if they bought off government people. It's government power that is the problem. While ever it exists, it will be abused.
lol - that's hilarious! :lol: the point you conveniently left out is that the amount of gold you can "redeem" it for is constantly dwindling with time.. SAVVVIE??!!?? :lol:
and there lays the flaw to what your saying, governments can't be trusted. Even back when there was an official gold slandered and gold was redeemable they cooked the books and created more money then there was to back it by gold. So explain how you think it will change anything to how it is now? examples: 1) atm without an "official" gold standard if they print more money the value of gold will go up and i can trade my fiat for gold. 2) If there is a gold standard, then the price of gold will go and i can trade fiat for gold. So in both examples: a) they will always print more money then value of gold. b) i can convert my fiat into gold c) the price of gold goes up So how are these 2 different?
the point you seem to forgot is that even on an Official Gold standard the amount of gold you can "redeem" it for is constantly dwindling with time. Gold can still and WILL be revalued even on a gold standard. as long as fiat is whats being used by the people in day transactions then the temptation by governments /banks to print more money will always be there no matter whats backing it. The only way to eliminate this is to use physical in day to day transactions. but even then they can make coins out of tungsten and most people wont know Then you can say what about bartering? If that happens then the elite will have to steal from us like they did in the old days by using force. cant stop human nature people. At the end of the day if people are ignorant, they will be taken advantage of.
This exactly, but I would still prefer the day where I can use coins of real money to buy my groceries etc. Back to gold silver being the convenient way of transaction, to me its more convenient than running an electronic account for some bankers profit or paper promise notes that wear out and need to be reprinted.
Things like banks and eftpos are not going to go away. Their convenience is simply too great and greatly improves trading and business in general. To think we will all be using gold coins to buy stuff I think is really pie in the sky. I want that option there however, even if I do not think it will take up. Paper, bank transfers and eftpos simply smash gold in this instance and I would not wish them away. What needs to happen, is that any person on any day can go into a bank, debit their account by $XXXX and get a gold coin in return. THIS IS REDEEMABILITY. To say gold is redeemable today is simply, I'm sorry, completely wrong. We do not want a bretton woods type scenario, that is not a true gold standard and is fraught with dangers of government just reneging again. I have no issue with paper, or eftpos circulating in conjunction with gold and no body should. As long as I can take said digital digits, or paper and get gold coin. In this scenario, paper and digital digits really are 'as good as gold'. To answer your points. a) This is hardly redeemable as mentioned above, you have a constantly fluctuating 'price'. b) if you have a gold backed currency that is redeemable, then it really is not fiat. Gold does not 'increase' in price. I think you are confusing paper money with fiat. Paper is not always fiat. Fiat is not guaranteed or backed by anything but governments. Paper is fine if it is redeemable. c) GOLD NEVER GOES UP. paper money goes down. I would do a little more reading on the subject perhaps.
First off i know it's the fiat money losing value and not gold going up. But I'm just illustrating the "effect" that's happening. and the effect in $ is that it goes up even though it's caused by the value of money doing down. You have to learn to understand things better m8. and second, if everyone is still using electronic money whats going to stop governments and banks creating more which will then force the gold price to be revalued?? yes it might mean it will only revalue every few year instead of everyday but at the end of the day the same effect will happen. You need to wake up and realise no government or bank will ever do the right thing.
They will not be able to revalue daily or even yearly. Being able to redeem the gold means as soon as they print too much people will redeem and the gold will flow out. Redeemability is key to keeping them accountable. Having a 'its all frakked and the system we have now is fine because its the same result' is hardly correct. I am not trying to be antagonistic. peace. edit: also, by keeping it redeemable it means you do not have to trust the bank or the government. That is why it is so important for redeemability. If you want to transact in gold coins you can, as will thousands or millions of others if the government abuses its currency.
