gold, page-49274

First 49274 Last

Share
Profile

Follow
gozinsa

2,213 Posts.

129

23/03/19

12:16

Post #: 37861233
Share

Originally posted by Bullspike: ↑

A gold backed system would constrain the amount of debt issued by banks. This also relies on no bail out from mummy and daddy central bank.

Debt is not the problem. The amount of it is, and the fact central banks seek to control economic activity via money supply. These two issues are the fatal flaw.

In a gold backed system Bank A can only lend as much paper notes as they have gold. They also have to make sure they can redeem paper for gold as clients require. They can lend as they feel suitable for the economic climate. If they lend recklessly up to their maximum allowed by gold, to high risk clients, they will suffer defaults and go out of business. They have no more capacity to lend. If banks are constrained by free market consequences like this they would not lend recklessly. Also, the amount of debt remains healthily pegged to the production capacity vector of the economy which is the bigger issue.

Gold backed could easily exist with e-currency today with proper policy.

Read austrian economics, and the history of fiat systems and you'll be backing the truck up to the perth mint. Why gold? Humans have wanted it the last 5000 years for money. Modern money systems need to have tangible money, which is timeless and universal in it's value to roughly retain the production effort expended to obtain it. Consider economic collapse due social factors but the money still holds universal value. What we have now is economic busts and the money goes down with iy.

Sadly, no goverment will gracefully transition back to a gold backed system. They will be forced if history repeats, which it does.

Expand

This has been explained to him 30 times on this forum, the conversation never progresses. He goes away, then comes back with the same old tired arguments. He is not here to learn or debate in good will. Just like the most of the other trolls.
3 Upvote

0 Great analysis

Reply

Top Stories

HotCopper Highlights: Your most watched stocks for Week 47, 2024

MIN

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

GRL

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

BTH

Bigtincan's Board backs Investcorp offer: Why a NASDAQ listing could be game-changing

DUI

Panic, paranoia, and gangland politics: HotCopper users react to Dubber's missing $26M

SIG

Dale Gillham's weekly wrap: Sigma-Chemist Warehouse merger creates pharma powerhouse

LPE

Sales growth pushes Lovisa's fortunes (and shares) upwards

PYC

Scientific conference spotlights PYC's work on blindness disease treatment

WC8

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

Week 47 Wrap: HotCopper users' most watched; Brent lifts on Putin's scary letter; RFK dents CSL

There are more pages in this discussion • 120 more messages in this thread...

First 49274 Last

Add GOLD (COMEX) to my watchlist

gold, page-49274

Top Stories

HotCopper Highlights: Your most watched stocks for Week 47, 2024

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

Bigtincan's Board backs Investcorp offer: Why a NASDAQ listing could be game-changing

Panic, paranoia, and gangland politics: HotCopper users react to Dubber's missing $26M

Dale Gillham's weekly wrap: Sigma-Chemist Warehouse merger creates pharma powerhouse

Sales growth pushes Lovisa's fortunes (and shares) upwards

Scientific conference spotlights PYC's work on blindness disease treatment

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

Week 47 Wrap: HotCopper users' most watched; Brent lifts on Putin's scary letter; RFK dents CSL