Would going back to the gold standard work?

[polisciguy]

Explain your answer as well, please.

 

[Morrigi]

The only thing keeping the world from doing so is America. Nixon basically told everyone and their gold to collectively **** off and it's gotten worse from there. In fact, countries attempting to base their currencies and/or exports off of anything aside from the U.S. Dollar are having a growing pattern of their plans being....terminated. Especially in the Middle East.

So going back to the gold standard would work, but the U.S. would have to drastically change their policy and/or lose the military might to back its current one up.

 

[Surtr]

It would only fail again.

 

[Jango]

Is there even enough to compensate for the amount of currency floating around? And, would going back to the gold standard result in confiscation and/or forced buy backs?

 

[specklebang]

Not a chance. If you back your money with gold, you have to have the gold. If you back your money with some sort of imaginary interest in the economy, you can print what you need when you need it.

 

[Grand Mal]

Only if you want to pay all your debts in gold.

 

[Captain Adverse]

I put "maybe/other" because I support a "precious metal" standard. Gold would be the prime metal, but silver and platinum would have replacement values so we would never run out of gold to back our money.

Dollars would only be issued on the amount of gold we had in stock to back each one, which means it would always have intrinsic value and people would not lose faith in it. This also reduces inflation because a finite amount of cash in the economic system increases it's value, whereas an unlimited amount results in inflation.

Fiat cash only benefits investment banks, and corporate borrowers; keeping the wealthy happy and the common citizen less so. That's my two cents anyway. :twocents:

 

[Helix]

my guess is no.

part of me is enamored with the idea, but i think there's no putting that genie back into the bottle.

 

[Captain Adverse]

my guess is no.

part of me is enamored with the idea, but i think there's no putting that genie back into the bottle.

Awww come-on! Join us on the Light-side of the Force. You know you want to...avoid the Dark-side. :darthgunny

 

[earthworm]

NO
This is opinion based, as I have not all the necessary knowledge.
By rights, I should not have voted.....but...
I feel that the original decision, back in the previous century was good and necessary.
Simply stated, we did not begin to have that much gold....so we had to use a "faith based" paper standard.
Reverting will not work today..
What we need is a better people....

 

[specklebang]

This is opinion based, as I have not all the necessary knowledge.
By rights, I should not have voted.....but...
I feel that the original decision, back in the previous century was good and necessary.
Simply stated, we did not begin to have that much gold....so we had to use a "faith based" paper standard.
Reverting will not work today..
What we need is a better people....

...or stronger faith.

 

[babilfish]

Explain your answer as well, please.

Define "work".

 

[Gipper]

America would have to become fiscally responsible overnight. Good luck with that.

 

[Arbo]

Well, money based on NOTHING has certainly done wonders for our nation.... :roll:

What an utterly stupid idea... Just one of the many things the founders did not want the government in control of... and yet again we find ourselves in that bad spot.

 

[Ikari]

Explain your answer as well, please.

No, not in today's global economy. The market on gold would be too easily cornered and you would leave the value of your currency vulnerable to the whims and pit falls of the market. It's a great idea, when things were well more isolated it was likely the better way to go. But currency is a major part of sovereignty and therefore a sovereign State needs control of the value of the currency. As such in today's global economy, fiat currency is an unfortunate necessity. It does mean you'll need transparency and control of government, and of course any organization that prints and regulates the value of our dollar is directly controlled and owned by Congress.

That being said, I wouldn't be opposed to allowing a competing, metal backed currency. But the official currency of the US would need to be the fiat dollar.

 

[Sherman123]

I'm actually remarkably unconcerned about having a fiat currency.

 

[Redress]

Explain your answer as well, please.

Define "work". If you mean would it function as designed, sure. If you mean is it desirable in comparison to fiat currency, then clearly no. No only would it leave us vulnerable to people manipulating the supply of gold, it would also leave us with fewer options to react to economic effects on the country.

 

[Arbo]

No only would it leave us vulnerable to people manipulating the supply of gold,

As if 'people' and 'government' haven't been manipulating our fiat currency for decades? How hard has it been for them?

 

[Ikari]

As if 'people' and 'government' haven't been manipulating our fiat currency for decades? How hard has it been for them?

It's not. That's why you need a large amount of transparency with fiat currency. The problem is that the available population of people able to significantly influence the value of your currency increases drastically with a metal backed currency compared to that of fiat.

 

[Arbo]

It's not.

Sorry, but such a belief is ignorant of both history and current fed 'pumping' ...

 

[Ikari]

Sorry, but such a belief is ignorant of both history and current fed 'pumping' ...

It's not hard for the fed and Wells Fargo to mess with our fiat currency? I believe that you're the one who is quite ignorant on the matter.

 

[Mr.Nick]

It be difficult but it would work.... Obviously it would be an extremely slow transition, but it would certainly work without question.

 

[Arbo]

It's not hard for the fed and Wells Fargo to mess with our fiat currency? I believe that you're the one who is quite ignorant on the matter.

You were agreeing with me, I misread.

 

[Redress]

As if 'people' and 'government' haven't been manipulating our fiat currency for decades? How hard has it been for them?

Our government doing it for our benefit is not a bad thing. There is a significant difference in the level of vulnerability between a gold standard and a fiat currency. And of course you ignored an important part of what I wrote.

 

[Arbo]

Our government doing it for our benefit

You (and so many others here) need say no more. Thanks, it says all anyone needs to know.