View Poll Results: Should/could the USA go back on the gold standard?

Voters
33. You may not vote on this poll
  • Yes, I think this is feasible and could solve a number of the economic issues.

    16 48.48%
  • I think it could solve some problems but it's not possible to switch.

    2 6.06%
  • It would be possible to switch but I don't think it would solve anything.

    3 9.09%
  • No, it's not possible to switch and there would be no point doing so.

    12 36.36%
Page 1 of 5 123 ... LastLast
Results 1 to 10 of 48

Thread: Should/could the USA go back on the gold standard?

  1. #1
    Advisor DGomez's Avatar
    Join Date
    Nov 2008
    Last Seen
    09-20-11 @ 10:12 PM
    Gender
    Lean
    Slightly Liberal
    Posts
    380

    Should/could the USA go back on the gold standard?

    Would this even be possible? Do you think it would solve our economic issues by forcing us to rethink the way we spend?
    Last edited by DGomez; 02-22-09 at 08:10 PM.

  2. #2
    Sage

    Join Date
    Dec 2005
    Location
    Goldsboro,PA
    Last Seen
    Yesterday @ 09:59 AM
    Gender
    Lean
    Progressive
    Posts
    5,420
    Blog Entries
    1

    Re: Should/could the USA go back on the gold standard?

    I do not think that any "metal standard" has much to do with this economic problem.
    For 30 to 40 years we have had trade imbalances and recently, huge...
    The money has left this country to be in China, Saudi-Arabia, and the two nations we defeated over 60 years ago....anyplace but the good old USA.
    Strange that I have not heard one word about this drain of our money...

  3. #3
    Pragmatist
    SouthernDemocrat's Avatar
    Join Date
    Jun 2005
    Location
    KC
    Last Seen
    Today @ 10:18 AM
    Gender
    Lean
    Moderate
    Posts
    13,933

    Re: Should/could the USA go back on the gold standard?

    The only reason why some libertarians argue for a gold standard is that they have some cult like belief that anything done in the public sector is bad, in this case the Federal Reserve is the Great Satan.

    Say we decide to go to a Gold Standard. Well, first the government has to reissue all currency in circulation. There would be a gold shortage in the treasury at first, so we would start out with far less currency than we have now. The government would then seek to remedy the situation by purchasing huge amounts of gold, which was result in a massive spike in gold prices.

    Then, how do we engage in any sort of trade with all the other developing and developed nations in the world that are not on a Gold Standard. Can't use the good old normal exchange rate, no, in our case the countries we trade with will redeem our currency for gold, thus reducing our nation's gold reserves, thus resulting in deflation. Which is one of the reasons why we had depressions about every 3 decades or so prior to switching from the Gold Standard. So basically, all we would get out of a Gold Standard is a much more volatile economy than we have under our current system where the value of our currency is not tied to a commodity, but rather its ultimately tied to the value of our economy in general. Don't believe me? Compare economic cycles in the United States prior to our moving away to the Gold Standard to afterwards. You will see a great moderation in economic cycles as we moved away from the Gold Standard.
    Last edited by SouthernDemocrat; 02-22-09 at 09:16 PM.
    "You're the only person that decides how far you'll go and what you're capable of." - Ben Saunders (Explorer and Endurance Athlete)

  4. #4
    Advisor DGomez's Avatar
    Join Date
    Nov 2008
    Last Seen
    09-20-11 @ 10:12 PM
    Gender
    Lean
    Slightly Liberal
    Posts
    380

    Re: Should/could the USA go back on the gold standard?

    Quote Originally Posted by SouthernDemocrat View Post
    Say we decide to go to a Gold Standard. Well, first the government has to reissue all currency in circulation. There would be a gold shortage in the treasury at first, so we would start out with far less currency than we have now. The government would then seek to remedy the situation by purchasing huge amounts of gold, which was result in a massive spike in gold prices.
    What's wrong with reissuing all currency?

    There wouldn't be a gold shortage. You only get to print as much cash as you have gold for. Thus, it would increase the value of the dollar. You have to view the spending proportionally. So instead of paying $20 for everything, we would go back to paying $0.25.

    Quote Originally Posted by SouthernDemocrat View Post
    Then, how do we engage in any sort of trade with all the other developing and developed nations in the world that are not on a Gold Standard. Can't use the good old normal exchange rate, no, in our case the countries we trade with will redeem our currency for gold, thus reducing our nation's gold reserves, thus resulting in deflation.
    Why does it matter if they're on the gold standard or not? Gold is universally valued. It just means that the dollar is actually backed by something other than a show of good faith.

    Going on the gold standard does not necessarily mean that you are able to redeem your dollar for gold at any given point. Just like how with banks you can't just waltz in and say you want to withdraw $1,000,000 in cash. All it means is that you COULD redeem it for gold. Your dollar is backed by gold.

    Quote Originally Posted by SouthernDemocrat View Post
    Which is one of the reasons why we had depressions about every 3 decades or so prior to switching from the Gold Standard. So basically, all we would get out of a Gold Standard is a much more volatile economy than we have under our current system where the value of our currency is not tied to a commodity, but rather its ultimately tied to the value of our economy in general. Don't believe me? Compare economic cycles in the United States prior to our moving away to the Gold Standard to afterwards. You will see a great moderation in economic cycles as we moved away from the Gold Standard.
    You mean the time before your money in the bank was insured and other post depression safe guards were put in place?

  5. #5
    Advisor DGomez's Avatar
    Join Date
    Nov 2008
    Last Seen
    09-20-11 @ 10:12 PM
    Gender
    Lean
    Slightly Liberal
    Posts
    380

    Re: Should/could the USA go back on the gold standard?

    Quote Originally Posted by earthworm View Post
    I do not think that any "metal standard" has much to do with this economic problem.
    For 30 to 40 years we have had trade imbalances and recently, huge...
    The money has left this country to be in China, Saudi-Arabia, and the two nations we defeated over 60 years ago....anyplace but the good old USA.
    Strange that I have not heard one word about this drain of our money...
    Right now western nations operate on a debit system. Because we can all basically go to negative infinity, there is absolutely no way to put a cap on all these "trillion dollar" bailout things. I mean, what's a trillion dollars when all it is is a number you punch in the computer? Look! I'll generate it right now: 1,000,000,000,000.

    If all the stupid "budget" junk was thrown out the window and in came down to "we literally can't spend more than X amount of dollars," government spending would have to drastically change. As in, do we really need to be funding all those missile silos that are collecting dust?

  6. #6
    Hi
    Harry Guerrilla's Avatar
    Join Date
    Dec 2008
    Location
    Not affiliated with other libertarians.
    Last Seen
    Yesterday @ 12:25 PM
    Gender
    Lean
    Libertarian
    Posts
    26,258

    Re: Should/could the USA go back on the gold standard?

    Quote Originally Posted by SouthernDemocrat View Post
    The only reason why some libertarians argue for a gold standard is that they have some cult like belief that anything done in the public sector is bad, in this case the Federal Reserve is the Great Satan.
    The Federal Reserve system is supposed to be public/private.

    It is not a cult like belief but there are problems with the Federal Reserve.

    Quote Originally Posted by SouthernDemocrat View Post
    Say we decide to go to a Gold Standard. Well, first the government has to reissue all currency in circulation. There would be a gold shortage in the treasury at first, so we would start out with far less currency than we have now. The government would then seek to remedy the situation by purchasing huge amounts of gold, which was result in a massive spike in gold prices.
    I personally don't think we should go to a gold standard but there is really no need to print new currency.

    The old can be reassessed to be inline with whatever the system allows.

    Quote Originally Posted by SouthernDemocrat View Post
    Then, how do we engage in any sort of trade with all the other developing and developed nations in the world that are not on a Gold Standard. Can't use the good old normal exchange rate, no, in our case the countries we trade with will redeem our currency for gold, thus reducing our nation's gold reserves, thus resulting in deflation. Which is one of the reasons why we had depressions about every 3 decades or so prior to switching from the Gold Standard. So basically, all we would get out of a Gold Standard is a much more volatile economy than we have under our current system where the value of our currency is not tied to a commodity, but rather its ultimately tied to the value of our economy in general. Don't believe me? Compare economic cycles in the United States prior to our moving away to the Gold Standard to afterwards. You will see a great moderation in economic cycles as we moved away from the Gold Standard.
    Your partially incorrect and should check it out.

    These websites cover the basics of those years.

    Economic
    Depressions of the United States


    The History Box | Panics, Depressions and Economic****** Crisis Prior to 1930
    I was discovering that life just simply isn't fair and bask in the unsung glory of knowing that each obstacle overcome along the way only adds to the satisfaction in the end. Nothing great, after all, was ever accomplished by anyone sulking in his or her misery.
    —Adam Shepard

  7. #7
    Hi
    Harry Guerrilla's Avatar
    Join Date
    Dec 2008
    Location
    Not affiliated with other libertarians.
    Last Seen
    Yesterday @ 12:25 PM
    Gender
    Lean
    Libertarian
    Posts
    26,258

    Re: Should/could the USA go back on the gold standard?

    Quote Originally Posted by DGomez View Post
    Would this even be possible? Do you think it would solve our economic issues by forcing us to rethink the way we spend?
    No, we shouldn't go to a gold standard. We should either use a free banking model or a multi commodity model.

    I may even support a fiat/multi commodity combo. We need to have a tangible value to our currency though.
    I was discovering that life just simply isn't fair and bask in the unsung glory of knowing that each obstacle overcome along the way only adds to the satisfaction in the end. Nothing great, after all, was ever accomplished by anyone sulking in his or her misery.
    —Adam Shepard

  8. #8
    Advisor DGomez's Avatar
    Join Date
    Nov 2008
    Last Seen
    09-20-11 @ 10:12 PM
    Gender
    Lean
    Slightly Liberal
    Posts
    380

    Re: Should/could the USA go back on the gold standard?

    Quote Originally Posted by Harry Guerrilla View Post
    We need to have a tangible value to our currency though.
    Agreed. The system we have now is doomed for failure. I clearly remember arguing with my 8th grade teacher during social studies years ago about how our dollar is worthless. There has to be a limit or we'll just keep doing what we're doing now. So long as other countries are ok with our expenses, who cares if we blow another 20 trillion?

  9. #9
    Count Smackula
    rathi's Avatar
    Join Date
    Oct 2006
    Location
    California
    Last Seen
    10-31-15 @ 08:29 PM
    Gender
    Lean
    Independent
    Posts
    7,890

    Re: Should/could the USA go back on the gold standard?

    The gold standard is a worse way of valuing money than simply printing money. Our government may be irresponsible and stupid, but tying money to the value of a commodity is risky and dangerous. The prices can fluctuate too wildly and there is no human input. Our current system, imperfect as it is, is still a more stable and safe way of handling a currency.

  10. #10
    Advisor DGomez's Avatar
    Join Date
    Nov 2008
    Last Seen
    09-20-11 @ 10:12 PM
    Gender
    Lean
    Slightly Liberal
    Posts
    380

    Re: Should/could the USA go back on the gold standard?

    Quote Originally Posted by rathi View Post
    The gold standard is a worse way of valuing money than simply printing money. Our government may be irresponsible and stupid, but tying money to the value of a commodity is risky and dangerous. The prices can fluctuate too wildly and there is no human input. Our current system, imperfect as it is, is still a more stable and safe way of handling a currency.
    Good plan. Let's just print more money whenever we need it. That wouldn't cause any inflation whatsoever.

Page 1 of 5 123 ... LastLast

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •