Discussion of the gold standard on Fox news?


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That's weird, seems Ron Paul was talking about this just months ago before our economy completely tanked.


Actually he's been talking about it since Nixon left office, because he's the one that removed the last link between the dollar and Gold. So Ron Paul has actually been talking about it for decades, and now it's here. What a kooky bastard, right?


Update 2:

Been There Before - I agree. But if you watch this video, and read the link I posted in the first edit, it will all come together for you. I promise.

Update 3:

Andrew Jackson vetoed renewal of The Second Bank of the United States, which was just The Federal Reserve with a different name. Here's an exerpt from his bank renewal veto message.

Update 4:

It is to be regretted that the rich and powerful too often bend the acts of government to their selfish purposes. Distinctions in society will always exist under every just government. Equality of talents, of education, or of wealth can not be produced by human institutions. In the full enjoyment of the gifts of Heaven and the fruits of superior industry, economy, and virtue, every man is equally entitled to protection by law; but when the laws undertake to add to these natural and just advantages artificial distinctions, to grant titles, gratuities, and exclusive privileges, to make the rich richer and the potent more powerful, the humble members of society the farmers, mechanics, and laborers who have neither the time nor the means of securing like favors to themselves, have a right to complain of the injustice of their Government. There are no necessary evils in government. Its evils exist only in its abuses.

Update 5:

If it would confine itself to equal protection, and, as Heaven does its rains, shower its favors alike on the high and the low, the rich and the poor, it would be an unqualified blessing. In the act before me there seems to be a wide and unnecessary departure from these just principles.


We should abolish the Federal Reserve.

Update 6:

b_plenge: Or reduce the money supply back to reasonable levels, so it isn't inflated into oblivion. That's the reason fiat monetary systems start; debt grows too big to be backed by gold, this the backing gets removed as it's easier than defaulting.

Update 7:

*thus, sorry

Update 8:

b_plenge, agreed. You are correct on everything that you say. But was Ron Paul suggests is making gold and silver legalized tender ALONGSIDE the Fed over a period of time, allowing for a "weening down", so to speak.

Update 9:

lol I don't expect a miraculous amount of people to write him in and win him the office. I'm merrily trying to point out that he was right and make people aware of his message.

6 Answers

  • 1 decade ago
    Favorite Answer

    The highest estimate I could find of gold mined to date in the history of the world is 160,000 tons:

    160,000 tons x 2,240 lbs/ton = 35,8400,000 lbs

    35,8400,000 lbs x 16 ozs/lb = 5,734,400,000 ozs

    Gold closed at $849.50/Ounce on Friday so ...

    5,734,400,000 ozs x $849.50/oz = $4,871,372,800,000

    Or nearly $4.9 trillion dollars mined in the history of man kind.

    The M1 money supply as of April 2008 was roughly 900 billion. The US would need a gold reserve of nearly 20% of all the gold ever mined in the history of the human race to back it with gold and that's assuming gold does not go down in value.

    The problem becomes availability, about half the gold mined goes for industrial use. So that needed 20% ends up being the lions share of all the gold in the world that is in bullion form. It would be impossible to purchase that much without artificially inflating the gold price only to have it deflate when the buying stopped. Much like the Hunt brothers did to the silver market in the 70s.


    Clarification: The 900 billion figure mentioned for the M1 money supply was only the portion of the M1 that actually is currency, not the entire M1 money supply, with was $1.7 trillion

    [Added in response to questioner]

    A reduced money supply would be ideal, anything smaller should be easier to manage. Right now though as banks hoard capial to deal with their own losses reducing the money supply would spur even a tighter credit market and more businesses will fail because of it.

    This problem didn't start overnight and it won't be solved overnight. My main concern is it will prove to be another situation like the great depression where historians agree nearly everything that was done to ease the impact prolonged the problem.


    Now that's a different spin, a mixed silver and gold standard. Silver being more accessable, still intrinsicly valuable and in lower demand since it's number one user the photographic industry has been switching to digital products could well be used to back up currency. I for one wouldn't mind seeing the return of silver certificates. I agreed with a lot of Ron Paul's fiscal policies unfortunately I'm also realistic enough to know he didn't have much chance without the backing of a major party.

    I also noticed something I didn't account for in my original answer. Between Fort Knox and the Federal Reserve depository the US already has nearly $17.5 billion in gold at current prices, so that $900 billion figure would be a little lower.

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  • 3 years ago

    that's humorous that the liberals experience Fox information is rubbish and the conservatives experience that's the information they might believe. liberals experience that CNN is the information they might believe whilst conservatives experience that's rubbish. WHY IS THAT ? Someones incorrect. understand enable's think of roughly it a minute? i think of that's because of the fact the CNN basically pushes one ingredient of the tale and liberals experience that there's no opposition to they time table. They somewhat think of that they are top and close out something different that's like speaking top over you while your speaking. Like all of them do.. I in basic terms have been given to thumbs down from 2 liberals. that's sort of humorous.

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  • Anonymous
    1 decade ago

    We could yet see a return to the gold standard by the world's central banks. The main cause? The economic policies of the Bush White House - but this requires a bit of explanation.

    Jewelry and industrial applications absorb 85% of new gold supplies. Although production has fallen a bit and industrial demand has increased, this alone cannot explain surging prices, because bringing new deposits on line would cost less than $700

    an ounce. The big new players in the gold market are exchange-traded funds. These store bullion for investors who have lost confidence in the US dollar, and may be a precursor to a new gold standard.

    In 1944, the International Monetary Fund established a system of fixed currency-exchange rates. The US dollar was fixed to gold and other currencies set to the dollar. This system ultimately failed because rising production costs pushed the industrial price of gold above its monetary value, and fixed exchange rates proved unsustainable. Productivity and competitiveness advanced more rapidly in Japan and Germany than in the United Kingdom, France and the United States, and trade imbalances caused crises for the pound, franc and dollar.

    When the pound and franc became overvalued, those were devalued against the dollar, yen and mark. When the dollar became overvalued, US president Richard Nixon ended its convertibility into gold in 1972, and the system of fixed exchange rates was abandoned by the end of 1973. Subsequently, the price of gold rose from $100 an ounce to a peak of $700 in October 1980.

    Over the next two decades, central banks demonetarized gold. They increasingly backed their currencies with US dollars, and to a lesser extent German marks (then euros) and Japanese yen. Many sold off significant portions of their gold. The price of gold fluctuated but trended to lows of $255 in July 1999 and $258 an ounce in April 2001.

    Two things made this possible. In the United States, Federal Reserve chairman Paul Volcker whipped inflation and presidents Jimmy Carter and Ronald Reagan put the US economy on the path of deregulation. These steps unleashed mighty waves of productivity and innovation, created the US prosperity of the past 15 years, and made the dollar a better and more stable store of value than gold.

    In recent years, though, record budget deficits, dysfunctional energy and environmental policies, and a dollar overvalued against the Chinese yuan and other Asian currencies have created huge US trade deficits. Dollars and dollar-denominated securities have flooded into international capital markets. These now total $5 trillion, increase $700 billion each year, and erode confidence in the dollar.

    To keep the yuan from rising against the dollar, China purchases more than $200 billion in foreign securities every year. A few central banks are buying gold again, and some economists are counseling the People's Bank of China, the country's central bank, to diversify its reserves from dollars into gold.

    A significant revaluation of the dollar against the yuan seems inevitable, and it will cause a wholesale adjustment for the dollar against other Asian currencies. With so much of what the world consumes now coming from China and other Asian economies, the dollar will be worth a lot less to gold miners in South Africa or Russia, and Asian currencies would be worth more. The Chinese yuan or South Korean won price of gold would not rise, and might fall, but the US dollar price of gold would increase, a lot.

    International investors with wealth to park are foolish to put it in dollars; however, the currencies with the best prospects are backed by governments with poor track records for controlling inflation or honoring commitments to foreign investors. Could you tell your mother her money would be safe in Korean or Chinese bonds?

    If private investors continue to doubt the dollar and bet on gold, central banks will be forced into gold. Investors won't trust currencies back by dollars, and central banks would be just as foolish as private investors to trust won- or yuan-denominated bonds.

    What brought the US to this pass? The root causes, as mentioned, are high government deficits and bad policies on energy and the environment, which have added to the country's trade deficit by exacerbating its dependence on foreign oil. And on all these matters, the buck stops (to put it ironically) with the administration of President George W Bush. The decision last week not to cite China as a currency violator, which again showed the US president's refusal to address the root causes of the trade deficit, will not improve matters.

    Unless the United States gets its economic house in order, gold will become money again, and national currencies will only be money if backed by gold.

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  • 1 decade ago

    Peter is right. The Fed has ran out of tools to defend the dollar.

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  • 1 decade ago

    Nobody listened. Nobody listened to McCain a couple of years ago when he did the same thing. BUT they listened to Barney Frank tell Congress that there was nothing wrong with Fannie Mae and Freddie Mac.

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  • Anonymous
    1 decade ago

    Fox news is something I watch when I need a good laugh. That's about all they're good for.

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