Alternative to a gold standard

When looking at the factors greatly affecting the global economy the issue of currency and it's lack of inherent value is high on the list. Many arguments are made of how the US dollar being a fiat currency with only the abstract value of the US GDP tied to it is loosing faith from the public. As the fed continues to print meaningless dollars at will it is having a devastating affect not only on the US but the world.

Many claim that if the dollar were attached to a tangible gold standard were bills could once again be in theory exchanged for an amount of gold. This could have a dramatic fix on the current situation. The opposing and valid argument to the gold standard is that it ties the monetary system down, not allowing the liquied required in society to fund all the needed projects and sustain the economy. In short there's not enough gold required for the needs of the US dollar.

My idea is this. What if dollars could be tied to other tangible resources in the nation, such as other precious metals, minerals, and even lumber. The idea is that dollars could be printed as needed and tied to resources still in the ground, as at least a theoretical collateral for the currency notes. I believe this could have a 2 fold affect. First the obvious is that it would bring back a tangible value in the dollar, but second it's a system that promotes the value not always seen to the conservation of our natural resources. It would promote I believe a more sustainable economy that would recognize the inherent value of our mountains, forests and natural deposits.
When certain resources tied to a particular output of bank notes was needed to utilized by industry the fed or government could by back those notes from the public economy and then make those resource sectors availible.

I am aware that this not a perfect plan but in truth it's something that just came to me one day and I think it makes a lot of sence. I'm very interested to hear the responses to this idea.

reply to post by Theorytripper


It would be easier to barter those commodities as is than have the dollar rely on their production and storage and its value be determined by the harvest that season, you know what I mean? You could go the communistic route and attach the value of the dollar to the value of the labor to produce the product. At least you would have a fairly stable dollar in that case. But it would take a lot of work to make a lot of money.

Good idea what you say... But lets face it ! The end of an empire is soon ! The USA is heading towards the final days of the superpower. They have all come and gone - Empires... And the USA is no different ! Nobody can stay on top because its in human nature to screw it up !! Prepare to live in a third world country i say. There are plenty of new kids on the block and the dollar is not even needed anymore in the world.

reply to post by asperetty


I don't see the dollars value relying on static commodities or harvests. I still, see it managed by a central bank. It's just that it can be tied to a tangible asset, giving it more security.

As for your second point in a sence we do currently have the dollar represent labour as it is tied to a nations GDP which in theory includes it's labour force.

You see my point is that if there were enough gold then a gold standard could help to fix the issues I'm taking about, issues of at least a theoretical faith in what the dollar in your hand represents. The central bank would still manage the value of it's currency as it does by putting money into the economy or buying it back out. It would just have to be real money with real tangible value. Like batch of dollars tied to say a uranium deposit. It's not that I could really cash that buck in for a piece of mineral, but at least the dollar is tied to something real.

I think this would force not only the central bank but the nation as a whole to manage it's economy in a more sustainable realistic way.

very good thinking...i say.
but they won't allow anything but devastation...or i guess they would have done that with silver and more...so that's why we don;t see it now, they can't have anything but downfall for the agenda of madness and evil written of long ago in that book.....

The Standard Is... Wait For It... LABOR

Ithaca has done this for decades: HOURS.

What a concept. WORK as MONEY.

reply to post by Chakotay


I think heard of this while ago, cool idea on a local level.

reply to post by Theorytripper



US dollar has already been tied to global oil transactions. It's called Petrodollar. It enjoyed fairytale story until Saddam Hussein stood up against the beast.

Together with the fact that Iraq had switched its oil currency trade to euros — rather than U.S. dollars — the Bush administration’s unreported aim was to prevent further OPEC momentum in favor of the euro as an alternative oil transaction currency standard.

So Iraq was invaded, oil trading restored to US dollar, Iraqi citizens being treated worse than animals by US/allies soldiers.

There you have it. US$13.85 trillion debt is unsustainable. It doesn't matter if US dollar tied to another commodity. It doesn't matter if US prints more money in future. The point is US dollar is garbage and it should have collapsed.

Euro crisis is being expedited because those criminal bankers and media do not want US to go down first.

reply to post by wisdomnotemotion


I believe the petro-dollar concept is a bit confusing on this subject. My understanding is that when the term is used it simply applies to the idea that oil is traded internationally with a US dollar value to create some global comformity in the market. Not that a dollar actually represents an amount of oil it can be exchanged for like with the gold standard.

I notice as well that the few replies this thread has received seem to focus on the idea that everything is going to crumble in the near future so what is the point of even looking at this idea. I disagree with this prospective. It is true that the global economy is very frgile right now, much because of it's manipulation by government and corporate influence. However, regardless of what happens in the near future if there are people who need to exchange goods and services in this world we will need some kind of currency for the convenience of exchange.

It is always possible that the whole system will completely collapse, but not likely. As bad as things are right now there have been much worse situations in history. Also, as much as there is manipulation perhaps with sinister objectives, I personally do not believe any one organization is powerful enough to manipulate a total social destruction. Governments and other groups may try and even come close, but unless we are talking a dramatic destruction of life and property such as a nuclear attack, society will re-establish and move forward in the long run.

reply to post by Theorytripper

much because of it's manipulation by government and corporate influence.

As pointed out above, unless we can have an affect on those that operate / control the financial system we will always be controlled through it, gold standard or not. The current system operates fine its the operators and the application that are the problem.

Edit to Add: This proposal by Dennis Kusinich in Dec '10 abolishes the fed and fractional reserve banking but i can't see a mention of gold standard. A pdf is available for download.

H.R. 6550: HR 6550: National Emergency Defense Act

Currently dollar is actually backed by oil.
Thats why most of the oil exporting countries are pegged with dollar.
And this is the main reason why US didn't like Kyoto protocol.
For instance, if you get free energy one day and find something substitutable to oil,
dollar will loose it's value as world reserve currency.
You made sense of making dollar backed by resource.
One resource that will be precious will be clean air.
So if dollar is backed by clean environment that will be good to the world and also to US.
In order to do that, Emission Trading Sheme has to grow as a major financial tool.
Well, it's little complcated matter but it will make sense.
Anyway, people have to change and culture have to change dramatically before it's too late.
Instead of figuring out how to provoke war in the mid east in order to fullfill bible prophecy,
US leaders should pay full attention on economy and the environment.
If not, well, US should be bankrupt and destroyed to save the world.

reply to post by mirine


Still not sure about the oil thing. It's not like the gold standard, you can't trade your dollar in for a given amount of oil. As I metioned earlier my understanding is that because the US dollar is the currency to peg to, it's therefor applied to the global oil market, thus the petro dollar.

As for the idea of air, and an overall value for a sustained environment, I completely agree. Another good resource like air would be fresh water, which will have the value of oil in the not to distant future. It is said the next wars will be over water, like oil is today.

The whole point is that if value is given to the preservation of our planet, then the economic paradigm can shift to a new way of seeing what wealth really means.