The Gold Standard

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Unca Walt said:
And I claim first patent on a $100 dollar bill that has "no gold" areas that form lines so the hundred could be "broken" into two fifties, or four twenty-fives, or ten tens, or a hundred singles. <-- Each piece containing exactly the amount of gold to value it perfectly.
Click to expand...
$100 dollar bill?
Why $?
Why dollar?

This is gold standard Unca, not fiat standard.
Gold Standard bills are denominated in gold, not in $.

A $100 dollar bill you say?
How about a 100mg gold bill?
😀

Screenshot 2024-12-20 at 22.40.58.png

Beautiful, isn't
 
^^^^^^^^^

I've been saying that a long time, now.

The dollar crash, is the end of Big Pharma's power. The end of the Green Raw Deal. The end of government handouts for things that work to DESTROY our economy.

The end of Drag Queen Story Hour. The end of hormonal and surgical mutilation of kids by the thousands. THE END OF SEXUALIZATION OF CHILDREN IN PUBLICK SKEULZ.

It reintroduces sanity into our lives. All that's needed, is to cut the control the Swamp crazies have to do all this evil.
 

Make the Dollar Great Again by Making It a Weight of Gold and Silver.​

Jan 20, 2025 #money #currency #debt

Gold and Economic Freedom by Alan Greenspan:

Make the Dollar Great Again by Making It a Weight of Gold and
41:02

00:00 Introduction
05:00 How the dollar was defined in 1792
12:58 HW Brands's Andrew Jackson - Book Recommendation
18:17 A reading of Gold and Economic Freedom by Alan Greenspan
 
Trump won't do it.

Trump, like all people who live(d) off financialization (in Trump's case, borrowed money was the bedrock for all major development projects)...he's addicted to cheap money. How many times has he said, he wants lower (even negative) interest rates?

Gold backing won't do it. A gold standard will make money SCARCE.

It would make our economy sound, but only after a massive recession unfolds from the cutting-off of all that CTRL+P money

I don't think Trump has it in him to even understand what the world looks like on the other side of the equation, as a saver or investor looking for safe, solid returns.
 
254b5a090a54c3efc7812f2e60651bee.gif
 
Casey Jones said:
You don't hold it, you don't own it.

What's to keep the holders of the gold from "fractional-reserving" the "owners" gold?
Click to expand...

I was reading today about Utah's gold backed transactional currency and I thought about our exchange back in December.

The Utah House committee has unanimously passed House Bill 306 (HB306), which aims to establish a gold and silver-backed electronic payment system for state vendors. This innovative system ... would allow the state to make payments using physical gold or silver held in vault facilities within Utah.

Pioneering Financial Reform: Utah's Bold Move Towards Gold And Silver-Backed Transactions - USAGOLD

The Utah House committee has unanimously passed House Bill 306 (HB306), which aims to establish a gold and silver-backed electronic payment system for state
www.usagold.com www.usagold.com

If you apply the "If you don't hold it you don't own it" to gold backed digital currencies, you are going to reject initiatives like this one.
 
Peter89 said:
I was reading today about Utah's gold backed transactional currency and I thought about our exchange back in December.

The Utah House committee has unanimously passed House Bill 306 (HB306), which aims to establish a gold and silver-backed electronic payment system for state vendors. This innovative system ... would allow the state to make payments using physical gold or silver held in vault facilities within Utah.

Pioneering Financial Reform: Utah's Bold Move Towards Gold And Silver-Backed Transactions - USAGOLD

The Utah House committee has unanimously passed House Bill 306 (HB306), which aims to establish a gold and silver-backed electronic payment system for state
www.usagold.com www.usagold.com

If you apply the "If you don't hold it you don't own it" to gold backed digital currencies, you are going to reject initiatives like this one.
Click to expand...
It's a step in the right direction.

It's going to require a lot of oversight, however - and rotters may see it as a challenge, as they have with check-kiting, with accounting fraud, with every other half-fast attempt to provide accountability.

Gold is like Truth. Neither need any defenders. Truth stands alone; and gold, once proven, needs only a weight and a count.

Paper "backed" by gold "held in a vault" needs a lot more.
 
We could return to a gold standard but not for international trade. Only for transactions within the US. This would be deflationary for people living within the US and the dollar could still be used for international transactions.

In order to have a gold standard for international trade the price of gold would need to go to about 125-150k an OZ to cover the debt. We would also need to export more than we import or eventually our gold is all going overseas.

Of course transacting with gold and silver within the US is already possible but not widely accepted.
 
Peter89 said:
Hello Unca

The holder of a gold backed paper currency holds in his hands a piece of paper.
The bullion represented by that piece of paper sits in a vault.

The holder of a gold backed digital currency holds an account.
The bullion represented by his digital currencies sits in a vault.

The holder of the gold backed paper currency doesn't hold/touch the gold, because the bullion sits in a vault.
The holder of the gold backed digital currency doesn't hold/touch the gold, because the bullion sits in a vault.

As far as the holding and the touching are concerned, there is no difference between gold backed paper currencies and gold backed digital currencies.

If you reject gold backed digital currencies because "If you don't hold/touch it you don't own it" - like Casey does -, logic requires that for the same reason you reject gold backed paper currencies too.

Yes?
Click to expand...
The difference is that with the gold backed currency, physical gold is payable to the bearer of the gold backed currency, on demand.

That makes it (the gold) be in your hand, not just locked in a far away vault somewhere.


searcher said:
goldseek.com

Sound Money Would Check Government More Than DOGE Can

If the Trump administration succeeds in reining in government, restoring sound money is the best way to ensure the politicians who come next won’t screw it up.
goldseek.com goldseek.com
Click to expand...
Why can't we have both?
 
Joe King said:
The difference is that with the gold backed currency, physical gold is payable to the bearer of the gold backed currency, on demand.

That makes it (the gold) be in your hand, not just locked in a far away vault somewhere.
Click to expand...
If I get you right JK, you are addressing what they call redemption: the option for the currency holder of redeeming the bullion represented by his gold backed currency, i.e. exchanging his gold backed currency for the underlying bullion.

You are right in that the option for redemption is an important criterion in order to discriminate between different gold backed currencies.
I don't know whether these initiatives for gold backed "transactional currencies" promoted by several states allow redemption. I don't even know whether the gold backed US dollar allowed redemption.

This discussion about how to apply the "If you don't touch/hold it, you don't own it" to gold backed currencies started when I mentioned gold backed digital currencies.
There are gold backed digital currencies that allow redemption.

kinesisgold.org

Redeeming KAU and KAG - Kinesis Gold

Redeeming KAU and KAG means converting them back into their underlying physical bullion, thus bridging the gap between digital currency and physical bullion ownership
kinesisgold.org kinesisgold.org
 
Casey Jones said:
You don't hold it, you don't own it.

What's to keep the holders of the gold from "fractional-reserving" the "owners" gold?
Click to expand...
Audits CJ
Independent audits conducted regularly by a company specialized in auditing commodity inventories.
Something like this one
kinesisgold.org

Kinesis Audit: Bureau Veritas Independent Audit of Kinesis Gold & Silver Holdings

The Kinesis audit took place between October 21 and October 31, 2024 through Inspectorate International (Bureau Veritas).
kinesisgold.org kinesisgold.org

The reason for the existence of fractional reserve in the gold world is lack of audits (think about the gold ETF).
I repeat: not just any kind of audit but independent audits conducted regularly by a company specialized in auditing commodity inventories.


The Trump Admin has instructed the US Treasury with repatriating the US gold reserves held in London (this is the reason for the gold inventories moving from London to NY, not the tariff hoax).
They want to bring home the US gold and then audit it.

Of course they are too smart to let the audit to be conducted by a gov agency.
The audit of the US gold reserves will be conducted by one - maybe more than one - independent companies - probably under the supervision of the US Treasury.

I read that the last audit of the US gold reserves was in 1954. There was another one in the 70es but it was just a show.
I don't know whether, how, by whom and how often the US gold reserves were audited before 1950.
 
Peter89 said:
I don't know whether these initiatives for gold backed "transactional currencies" promoted by several states allow redemption.
Click to expand...
If not, they ain't really gold backed.

The point is, if the currency being used is redeemable in the gold backing the currency, it's virtually the same thing as the gold itself circulating.


Peter89 said:
This discussion about how to apply the "If you don't touch/hold it, you don't own it" to gold backed currencies started when I mentioned gold backed digital currencies.
There are gold backed digital currencies that allow redemption.
Click to expand...
As long as there is redemption, it's all good. Both physical and digital currency.
 
Peter89 said:
The Trump Admin has instructed the US Treasury with repatriating the US gold reserves held in London (this is the reason for the gold inventories moving from London to NY, not the tariff hoax).
They want to bring home the US gold and then audit it.

Of course they are too smart to let the audit to be conducted by a gov agency.
The audit of the US gold reserves will be conducted by one - maybe more than one - independent companies - probably under the supervision of the US Treasury.

I read that the last audit of the US gold reserves was in 1954. There was another one in the 70es but it was just a show.
I don't know whether, how, by whom and how often the US gold reserves were audited before 1950.
Click to expand...

So, nobody countered my prediction.
Makes sense then
😃
 
searcher said:
Link to paper Mario mentioned in the above vid:

Human Freedom Rests on Gold Redeemable Money
By HON. HOWARD BUFFETT, U. S. Congressman from Nebraska
Reprinted from The Commercial and Financial Chronicle, May 6, 1948

Click to expand...

Same paper mentioned again by Mario in today's vid.

Who's Loading Up on All the Physical Gold? Part 2.​

Feb 28, 2025 #dollar #preciousmetals #government

Annual Letter to Berkshire Hathaway shareholders (comment about paper money on page 7: https://www.berkshirehathaway.com/let...

Human Freedom Rests on Gold redeemable Money, Howard Buffett: https://www.fgmr.com/wp-content/uploa...


45:37

Who Is Loading Up on All the Physical Gold? Part 1.

"Human Freedom Rests on Gold Redeemable Money": Howard Buffett.
 
Man, I don't know if I'm just being extra stupid today but for some reason I can't make sense of the above chart.
I've tried everything including turning my head sideways and I'm just not getting it.
Can someone explain it as if they're talking to an eighth grader?
Thanks for indulging this old man.
 
Blue bars are the marked to market value of gold relative to federal debt. Currently, the value of US gold, marked to market, is just 2% of Federal debt.

White line is ratio of federal debt to GDP.

The chart starts circa 1940 and shows how we used to have gold equivalent to 40% of Federal debt (before WWII spending blew out the debt to GDP ratio).

The text in yellow is doing a simple "this is what our current holding of gold would need to be worth to be the equivalent value of X% of Federal debt.

Classically, a gold standard maintains at least 40% gold reserves.
 
pmbug said:
Blue bars are the marked to market value of gold relative to federal debt. Currently, the value of US gold, marked to market, is just 2% of Federal debt.

White line is ratio of federal debt to GDP.

The chart starts circa 1940 and shows how we used to have gold equivalent to 40% of Federal debt (before WWII spending blew out the debt to GDP ratio).

The text in yellow is doing a simple "this is what our current holding of gold would need to be worth to be the equivalent value of X% of Federal debt.

Classically, a gold standard maintains at least 40% gold reserves.
Click to expand...
…so there’s a chance?
 
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