It's an interesting exercise to do just to think "what would it be" etc. There's a few avenues / alternatives. If looking at backing against a currency, calculate against M1/M2 money supply which is lower than your GDP calc. If going wider for non cash / near cash assets, inc M3 which then increases closer to your GDP number. M1-3 supply numbers in the attached link. https://www.jmbullion.com/investing-guide/pricing-payments/golds-price-vs-us-dollar-M1-M2-M3/# The bigger for giggles "what if" is if you add US Govt actual and contingent debt into the mix, what price then gold to pay off all the debt?? Have fun...
I've only just finished quenching my head under cool running water after the last number crunching session... I'm certainly no mathematical boffin. I didn't even think of including the national debt... holey moley, I think I can smell smoke coming from my ears.
If you want to STEAL more of the wealth of the producing class, may I suggest a quicker way with a few of these. The cost is about the same, just add a few 0's. What a quaint idea, it's a wonder nobody else thought of it.
If you really believe they will convert gold into currency by simply dividing the currency in existence and raising the price of gold then you had better hold on to your hats. Suddenly your average housewife has enough gold on fingers to buy a house. Buy shares in the meat cleaver business.
Would like to throw this in here, an old post from our resident expert showing a convenient coincidence: a 5.5% Australian gold standard. https://goldchat.blogspot.com/2018/10/is-australia-on-555-gold-standard.html?m=1
That's precisely why i don't think that scenario would be plausible. I'm pretty sure that if we had to revert to a gold backed currency, we'd need to invent a new dollar. Edit: or simply just stack more gold in reserve as the link above in 66rounds suggests. I'd like to hear from those who think it might happen, how they think it might be rolled out?
Will work exactly like pounds to predecimal did. Old notes will be worth something until a cut off date, but likely not the value we expect.
Your fist proposition is incorrect GDP is actually how many dollars are spent not how many exist. Secondly in 1966 we Abandoned the Sterling and floated the AUD on the Stockmarket = trust us we don't need silver or gold to back our debits, just check out our GDP and high interest rates. AUD is as safe as ever! Gold/silver price didn't adjust the 'adjustment' was $ buying power.
To my mind 66 is right just keep stacking and swapping. Edit to add: you are right we will need a new dollar, I will hazard an uneducated guess -it will be centralised digital with all the benifits and pitfalls of our combined imagination 20x How will it be rolled out? Probably doesn't matter that much, just watch for the end game play to see what comes next. Keep stacking.
Now, you've just gotta love that, what a suck, lol. p.s. I had to ZOOM-IN to 150% to read the fine print, but I recognise the quotes from her books.
JOHNGALT the effort you put in to formatting the fonts on your posts is enjoyable. I always have my computer zoomed to 150% cos it's less of a strain on the old eye holes.
Haa gold! Well not really, actually probably the opposite........ from the bottom of the site in very small writing Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate.
