Should America Return To The Gold Standard ?

Should America return to the gold standard as the basis for the dollar? Is it even possible? It seems to me that our standard of living has been on a roller coaster since Nixon formerly removed us from the gold standard.
In my personal opinion, we should base our currency on gold an silver. But is it possible? What would be the effect on our economy and the world economy. I am very concerned about the state of the US economy, and I am very curious about the possible ramifications of returning to the gold standard?

Your best option is to learn how to be self sustaining by knowing how to hunt for food, preserve it, make your own clothing, shelter, hunting tools, purifying drinking water, and teaching others how to do the same.

That is far more valuable than gold or silver.

And it is far more likely that you and others will survive a total economic collapse by knowing what our ancestors knew how to do.

Barter and trade will be the key to survival.

Even if the system is changed to precious metals, those metals will also be worthless when the system relying on value has collapsed.

Gold wont feed you, nor will silver put heat into your tent or hut or put warm clothing on you.

Cheers!!!!

reply to post by kettlebellysmith

China is buying up all the gold. Also consider which other contries have cornered the market on gold. Those are the countries which will gain power if people attempt to use gold as a medium of exchange.

During the depression people turned to barter. Then as now the government was confiscating gold. With web based barter exchanges there is more opportunity to gain wealth through barter than there was in cave man days.

Answer: a resounding "YES"!!

Not just the USA, but the whole world is in desperate need of a new financial system, that isn't based on simply printing currency out of thin air

reply to post by kettlebellysmith


Once a fiat money system has collapsed, as ours looks as if it will, then I agree with Mr. Burns above...

However, to avoid such collapse, my personal opinion is that yes, an economy based on some item of extrinsic value (need not necessarily be gold) would be preferred.

An additional restriction I think would have to be that the issuing entity (usually a government) would under no circumstances be allowed to engage in deficit economics.

In other words, an issuing entity would not be allowed to print any notes in excess of the amount of gold (or whatever) was on hand, on the assumption that more would be coming along. Thus, while individuals in an economy could still incur debt, for houses and such, the economy as a whole would only be able to have as much money in circulation as the thing of value existed to back it up.

It's my opinion that massive and continuous deficit spending is one of the contributing factors to the present situation. Assuming the situation is even real, of course...

As to is it possible for the US to return to a real-value based system? Sadly, I think probably not without the initial collapse. It would be a painful process, and the various PTB, since they benefit from fiat systems, aren't likely to do so unless the alternatives are more painful.

Originally posted by Open_Minded Skeptic
Once a fiat money system has collapsed, as ours looks as if it will, then I agree with Mr. Burns above...

However, to avoid such collapse, my personal opinion is that yes, an economy based on some item of extrinsic value (need not necessarily be gold) would be preferred.

Yes, exactly, the question is, what, besides hemp, is common yet valuable enough that it could be used as a currency?

If making a transistion to precious metal based currency, as long as the value of those metals do not decrease and it can stop a collapse, I too agree with the change....(pocket full of it!)

Its always good tho to have a backup plan too, like barter and survival skills.

Cheers!!!!

Originally posted by MrdDstrbr
Yes, exactly, the question is, what, besides hemp, is common yet valuable enough that it could be used as a currency?

That's a good question, and I don't know the answer right off... there was once upon a time when black pepper was the same price as gold per weight...

I don't really have any problem with gold as the standard, but there might be some alternative that would work better... don't know...

Originally posted by Open_Minded Skeptic
I don't really have any problem with gold as the standard, but there might be some alternative that would work better... don't know...

Hehe, I certainly have never read of someone who thought up an alternative that would work!

reply to post by RFBurns


Actually, I am quite capable of doing all those things, though I'm not much of a tailor. I can tan skins, hunt, grow my own food etc. What I am asking is "Should our money be based on precious metals?"

It's possible but it won't happen. America would be considered the 4th poorest country if we did, simply because gold's value has dropped many margins since we broke the Gold Standard.

I often wondered why the U.S. Government collected everybody's gold (the universal currency prior to the dollar bill), and replaced it.

Then I read Zacharia Sitchen's work on the translation of the Sumerian Tablets. If he's right, and gold is used to feed the atmosphere of his supposed 12th planet, Nibiru, then it would make sense that America horded most of the worlds gold. Sounds like an offering to me.

Just my 2 cents.

The Gold Standard was overwritten to lower the value of Gold.

reply to post by Open_Minded Skeptic
Basing currency on salt, pepper, or anything else that is impermanent is not a good idea. (For exmple, the dollar being tied to the price of oil.) Think ethanol. Is it really a good idea to burn your food supply?

Originally posted by MrdDstrbr

Originally posted by Open_Minded Skeptic
I don't really have any problem with gold as the standard, but there might be some alternative that would work better... don't know...

Hehe, I certainly have never read of someone who thought up an alternative that would work!

Barter has always brought attempts at mass slavery down. Banksters, accountants, and tax collectors do not have the patience to deal with mass quantities of merchandise. In order for the barter exchanges not to take over the web will need to be destroyed. This won't happen because those in power want to know what the heck American citizens are doing and thinking right now. I am thinking nothing good or bad will last forever. This to will pass.

[edit on 2-10-2008 by eradown]

reply to post by kettlebellysmith


You are right, a short-lived item would be a poor choice... I wasn't really trying to suggest a specific alternative, my apologies for being unclear and somewhat off-topic from your original question...

Well from my perspective, the British Government should not have sold all of our gold when it was rock bottom. But hey, we can buy sub-prime nationalisations.

reply to post by Crabmeat
How can you say gold has dropped? The price of gold, when Nixon pulled us off, was $35.00 per ounce. Even accounting for inflation, the price has risen. And while I refer to it as the "gold standard" money would be tied to gold, silver, and possibly platnium. Something permanent, as opposed to disposable.

We've printed more dollars then we have in Gold. If you want to think about it that way then gold's value has risen, in terms of how much money you have to pay for it, but the U.S.' gold is the least expensive of the great powers in today's world.

We definitely need to base our monetary system on some combination of precious metals, perhaps a combination of gold, silver and platinum, as an example. The devil, of course, is always in the details. However, once the formula is worked out, it would prevent the FED (preferably-get rid of the FED, and go to a true US Banking authority) from just printing worthless paper, which continues to devalue as this worthless script is printed.

reply to post by kettlebellysmith
According to rumour, everyones prayers are about to be answered; the amero is backed by silver. It is sitting in Boulder waiting for the right moment. If Americans could just get over their attachment to that piece of paper, the constitution, we could all live in a one world utopia run by the UN.

reply to post by Open_Minded Skeptic
Are you proposing a cash only society(especially a cash only government?) If so, then you are falling in line with something I have beleived in for quite some time. When we build a road, a battleship, or anything else, we have the money to pay for it at the time, or it don't get done.
To those of you who say our infrastructure, our military and our government would suffer, I disagree. There was a time when a man would build a road across his property, and charge a toll for anyone who wanted to take the shortest route to his distination. Some cities and states do that now.
My question is, can we do this? and should we? Would we be any worse off than we are now, since it obvious our elected officials are obviously ignoring the will of the people. By being on some sort of fixed standard we could lessen the effects of recessions(depressions).