Lybia and the Gold Standard

C

CriticalSilver

New Member
Silver Stacker
Remember Iraq and Saddam Hussein wanting to replace trading oil in USD with the Euro?

Make what you will of this video (courtesy of http://www.silvergoldsilver.blogspot.com/)
[youtube]http://www.youtube.com/watch?v=rgdn0bNsMkQ[/youtube]

Seems like Gaddaffi was front and centre on the development of the Golden Dinar in Malaysia and was setting up to repudiate the USD as a basis for trade.

That new Central Bank in Benghazi starts making some sense.
 
On Good Friday I feel this quote is not out of order.

Jesus said, "What you will hear in your ear, in the other ear proclaim from your rooftops.

After all, no one lights a lamp and puts it under a basket, nor does one put it in a hidden place. Rather, one puts it on a lampstand so that all who come and go will see its light."

Source: Gospel of Thomas
http://www.gnosis.org/naghamm/gosthom.html
Click to expand...

Internet forums are like lampstands.

And this story raises some serious questions. Like who was The K.Rudd working for when he was running around the world selling a no-fly zone in Lybia, surprising his notional boss in Australia with the idea?
 
Gino said:
On Good Friday I feel this quote is not out of order.

Jesus said, "What you will hear in your ear, in the other ear proclaim from your rooftops.

After all, no one lights a lamp and puts it under a basket, nor does one put it in a hidden place. Rather, one puts it on a lampstand so that all who come and go will see its light."

Source: Gospel of Thomas
http://www.gnosis.org/naghamm/gosthom.html
Click to expand...

Internet forums are like lampstands.

And this story raises some serious questions. Like who was The K.Rudd working for when he was running around the world selling a no-fly zone in Lybia, surprising his notional boss in Australia with the idea?
Click to expand...

Research the links between, Shorten, and Gillards ties to zionists and israel, they are not hard to find.
 
[youtube]http://www.youtube.com/watch?v=TB6MJnzhMYY[/youtube]

Source: Max Keiser

I note that this is being reported on Russia Today and not the media of the coalition of the willing. I guess that's because this Gaddafi and his Gold Dinar story is just subversive propaganda from foreign states and the currency wars we are seeing and collapsing precious metal markets have nothing in common with Libya or Iraq and the Federal Reserve.
 
There aint enough gold and silver in the world to match the populations monetary needs, surely?
 
hiho said:
There aint enough gold and silver in the world to match the populations monetary needs, surely?
Click to expand...


I've been thinking the same thing... But there IS enough Carbon...
 
hiho said:
There aint enough gold and silver in the world to match the populations monetary needs, surely?
Click to expand...

Well, that all depends on the value.

Hence the pressure on the USA with its monopoly money reserve currency. If Libya or Iraq traded oil in Gold, the price of the PM complex would levitate much higher while the value of the USD would fall away, simple demand. Holders of Gold would ultimately stand indepedently wealthy and powerful, something the USA can not tolerate apparenty.

Which is what I don't get. If the USA has more gold than any other nation on the planet, as they claim, then it would stand to benefit the greatest from the revaluation of gold and re-introduction of a Gold standard.

There are, of course, conspiracy theories that suggest there is no gold in Fort Knox, and attempts to audit the holdings have been dismissed. So that there has not been any independent audit of the Gold reserves of the USA since Eisenhower.
http://www.timesonline.co.uk/tol/news/world/us_and_americas/article5989271.ece

In which case, it is completely understandable why the USA dares not tolerate any attempts to re-introducing gold into international trade settlements. Maybe there are other reasons, as well, but we would never know.

In fact, if you think about it (and I have a few times) the USA should have crashed its currency before Russia and China started their gold accumulation and USD and US Treasury diversification. They could have completely destroyed their capital reserves and would have been able to re-assert their global superiority, if they had the gold they claim that is.

Hey! Maybe their gold is sleeping with the fishes just like OBL.
 
hiho said:
There aint enough gold and silver in the world to match the populations monetary needs, surely?
Click to expand...


This is easily debunked by the fact that the importance of a metals backed currency isn't the amount of metal each dollar, pound, euro, or yuan is representing, but rather that a metals standard requires that currency issuance remain flat until more gold or silver are obtained. This restricts central banks and world governments from creating hidden inflation. Either the issuer must obtain greater stocks or metals or devalue the currency.
 
projack said:
hiho said:
There aint enough gold and silver in the world to match the populations monetary needs, surely?
Click to expand...


This is easily debunked by the fact that the importance of a metals backed currency isn't the amount of metal each dollar, pound, euro, or yuan is representing, but rather that a metals standard requires that currency issuance remain flat until more gold or silver are obtained. This restricts central banks and world governments from creating hidden inflation. Either the issuer must obtain greater stocks or metals or devalue the currency.
Click to expand...

I think the problem is that if silver was used as a monetary backing the implied price would have to be so high that many of the current industrial uses for the metal would be uneconomic. Gold doesn't have that problem as it's not used in industrial applications to anywhere near the same extent so it's price can go arbitrarily high in order to support any desired amount of currency.
 
the point is if you have this system you cant have a war after war, because youll spend your gold eventually and thn youll be broke, the way it is currently you just print more money
 
A gold standard has just as many problems as a fiat standard. As much as I'm skeptical it will happen, the most logical answer for monetary reform is freegold.

Store of value must be separate from unit of account.
 
villiagegate said:
A gold standard has just as many problems as a fiat standard. As much as I'm skeptical it will happen, the most logical answer for monetary reform is freegold.

Store of value must be separate from unit of account.
Click to expand...

What are some of the problems?
 
MatrixOpals said:
Rtistik said:
What are some of the problems?
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Not enough to go around, unlike printing of more fiat. :rolleyes:
You can't use Gold as kindle to start a fire.
You can't make substituted paper brownies to fill up ye tummy.
You can't wipe your bum with Gold.
:rolleyes:
Click to expand...

Who says you can't wipe your bum with gold? :)
 
There is most definitely enough to go around. Just not at this price.

A gold standard can still have inflation and deflation, it just comes from different places.

Consider this, the money supply is fixed, yet the population increases. What happens to the nominal value of things?

A gold standard cannot deliver price stability as the note issue must increase over time as more people seek to transact in those notes.
 
The last figures I saw indicated that the gold supply (above ground, refined etc) was increasing at about 3% per year - not too dissimilar to the rate of population growth so I don't see a huge problem.
 
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