All the Gold ever extracted is 160,000 tons (in 2009) , The American Debt = 14 Trillion Dollars = 1.8 All the Gold ever extracted in Human History !!! The monetary mass in the US is increasing by 15% a year ! Total gold divided by people in the world gives each of us 23 grams
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Wednesday, March 23, 2011

Should the US restore the Gold Standard

The gold standard is what kept politicians in line, and kept out dollar strong. Arbitrarily printing money is weakening it - $4.7 trillion to $8.2 from 2001-2008 says everything. a dollar as good as gold could solve a lot of our trouble , the dollar's been devalued on purpose to prop up our real asset prices and stimulate exports and foreign investment in the US. It's all about increasing liquidity when there's a danger of liquidity drying up.Like any tangible commodity, the value of gold is arbitrary and susceptible to manipulation by the market. Altering the fraction in such a way would cause the value of Gold to rise exponentially at first, as I pointed out in a previous post, and then crash upon its value becoming inflated, resulting in an economic collapse. No, if such a transition would occur, it could be a gradual process only after the economy hits rock bottom and U.S. Treasuries begin to move into gold and other tangibles.

Gold was chosen, once upon a time, for its properties. Diamonds are not so practical as gold in that you can break up into any number of denominations without changing its mass/volume ratio. Can't do that with diamonds or Rubys. Silver has been used; in fact you could use it as another denomination as nickel and copper have been. Ever heard of nickels dimes and pennys?
You also have to remember that we had the gold standard in 1929 and the first four years of a depression. Nixon was forced to give it up because other countries would exchange their dollars for USD and buy gold. Result was gold was cheap to them. Therefore, the country was being depleted of gold. We have to be careful on what we do. But definitely END THE FED. Remember it is not the stock market that causes a depression. Rather it is the contraction of the money supplyortheammountof *principal.

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