There is a good chance that the US will be on a gold standard in 5 years

What happens when the gold standard results in an ultra strong dollar that kills off all US exports? And how do you transition to the gold standard when the price of gold is probably inflated by 4-500%? And what if the price of gold crashes after the conversion now that there is no longer a need to hold gold as a hedge against the dollar? More correctly, what happens if the price of gold goes through the roof as the US will need to buy all of it (not just the gold in circulation, but the gold in the ground) in order to get off of fiat currency? And why gold? Why not marshmallows, gummy bears, baseball cards or itunes credits?

Precious Roy wrote:

What happens when the gold standard results in an ultra strong dollar that kills off all US exports? And how do you transition to the gold standard when the price of gold is probably inflated by 4-500%? And what if the price of gold crashes after the conversion now that there is no longer a need to hold gold as a hedge against the dollar? More correctly, what happens if the price of gold goes through the roof as the US will need to buy all of it (not just the gold in circulation, but the gold in the ground) in order to get off of fiat currency? And why gold? Why not marshmallows, gummy bears, baseball cards or itunes credits?

Some people are reasonably intelligent, but fail to grasp the logic of the gold standard because they are too indoctrinated by an incorrect ideology. There is hope for these people to change their minds once they are forced to deal with the failure of the fiat money.

You, on the other hand, are simply stupid to the bone. That is genetic is cannot be fixed.

Austrian Economics wrote:

The dollar crisis that is now utterly imminent will expose the evils of fiat currency in dramatic fashion, providing great impetus for America to return to a gold standard. The recent surge in the popularity of Austrian economics is shedding light on both the magnitude and the true cause of our economic malaise, and these things can be grasped easily by any man of average intelligence provided that he has a rational mind. The events to come will totally discredit the socialist left and the Keynesian element that dominates academia, clearing the way for the truth and clarity found in Austrian economics to emerge and gain widespread acceptance. Thereafter, the intellectual stage will be set for a return the gold standard. Then we can finally return to a rational economy based on the principle of freedom.

You must have been listening to Steve Forbes. He's recently been predicting the US would go back to the gold standard within 5 years. I don't have a strong opinion on this, but generally speaking, big changes like that don't happen easily, so I'm inclined to think it will NOT happen within the next 5 years. I wouldn't bet on it though.

Flagpole wrote:

You must have been listening to Steve Forbes. He's recently been predicting the US would go back to the gold standard within 5 years. I don't have a strong opinion on this, but generally speaking, big changes like that don't happen easily, so I'm inclined to think it will NOT happen within the next 5 years. I wouldn't bet on it though.

You're right, I got that from Forbes. I also agree that five years might be a short time frame. It might take that long just for the dollar to collapse.

Good post.

No presidential candidate understands this except for Ron Paul.

Precious Roy wrote:

What happens when the gold standard results in an ultra strong dollar that kills off all US exports? And how do you transition to the gold standard when the price of gold is probably inflated by 4-500%? And what if the price of gold crashes after the conversion now that there is no longer a need to hold gold as a hedge against the dollar? More correctly, what happens if the price of gold goes through the roof as the US will need to buy all of it (not just the gold in circulation, but the gold in the ground) in order to get off of fiat currency? And why gold? Why not marshmallows, gummy bears, baseball cards or itunes credits?

No matter what happens, the country is doomed because it's filled with people like Roy.

How about the salt standard? The US is the biggest producer in the world and probably the biggest consumer.

TCB wrote:

I've given you one simple question and you have failed to answer it time and time again. Stop wasting your time coming up with insults and reasons why you are so much better than everyone else and start thinking of how an economy can grow with deflation. Saying people are too stupid to understand the gold standard just proves the statement in your subject line to be false. If you want people to believe in the gold standard, then you will have to come up with good answers to serious questions.

Deflation is properly understood to be a contraction of the money supply. I assume that you mistakenly use the term to mean a reduction in consumer prices. The reason that falling prices are desirable is that, when goods and services are cheaper, people can afford to buy more of them. When people can afford to buy more goods and services per unit of labor, they are able to enjoy a higher quality of life. Of course, improvements in a country's standard of living can only comes about as a consequence of increased production. We can't skip the work required to bring wealth into existence and just consume as much as we want using borrowed money the way you want us to do.

I don't think we are worth our weight in salt, unless perhaps, we are.

Randy Oldman wrote:

How about the salt standard? The US is the biggest producer in the world and probably the biggest consumer.

How about human fat. You know we own that market plus it's proably just as good as shiny rocks that you dig out of the ground.

The salt standard makes much more sense than the gold standard. If the Dow went to 500 the salt would be very useful. i.e. we will all have to live off the land if that ever happened.

Gold, and the price of gold have less to do with actual value than it does speculative 'hedges'.

Pegging the currency to gold, is academically stupid and irresponsible, but I suppose that is what one would expect from an Austrian Economist.

If the price of gold was $25/oz people would not be calling for a gold standard.

Steve Forbes is a talking head and his family has never had any success with their politically driven economic policies.

Steve's grandfather B.C. Forbes tried to run on the flat tax many many years ago and failed. So in the end, while people are reading, no one is really listening.

If by good chance you mean like .0001% then you might be correct. Gold bugs have been predicating a shift back to the gold standard for 40+ years now. Any one of average intelligence and a rational mind can figure out that we are not going back to the gold standard in 5 years. Only a delusional idiot from the facist right would think that it is going to happen.

Austrian Economics wrote:

The dollar crisis that is now utterly imminent will expose the evils of fiat currency in dramatic fashion, providing great impetus for America to return to a gold standard. The recent surge in the popularity of Austrian economics is shedding light on both the magnitude and the true cause of our economic malaise, and these things can be grasped easily by any man of average intelligence provided that he has a rational mind. The events to come will totally discredit the socialist left and the Keynesian element that dominates academia, clearing the way for the truth and clarity found in Austrian economics to emerge and gain widespread acceptance. Thereafter, the intellectual stage will be set for a return the gold standard. Then we can finally return to a rational economy based on the principle of freedom.

Bearded Beast wrote:

So in the end, while people are reading, no one is really listening.

What you really mean is that you are not listening. Austrian economics is rapidly gaining popularity despite your personal refusal to listen.

Austrian Economics wrote:

The dollar crisis that is now utterly imminent will expose the evils of fiat currency in dramatic fashion, providing great impetus for America to return to a gold standard. The recent surge in the popularity of Austrian economics is shedding light on both the magnitude and the true cause of our economic malaise, and these things can be grasped easily by any man of average intelligence provided that he has a rational mind. The events to come will totally discredit the socialist left and the Keynesian element that dominates academia, clearing the way for the truth and clarity found in Austrian economics to emerge and gain widespread acceptance. Thereafter, the intellectual stage will be set for a return the gold standard. Then we can finally return to a rational economy based on the principle of freedom.

You should be pushing a tin foil standard. With the amount you have tied up in hats you'll be an important man.

Randy Oldman wrote:

How about the salt standard? The US is the biggest producer in the world and probably the biggest consumer.

Salt? Gold? Bunch of fools. Tulips are coming back my friend, they are the commodity of the past AND the future.

sadfsadds wrote:

If by good chance you mean like .0001% then you might be correct. Gold bugs have been predicating a shift back to the gold standard for 40+ years now. Any one of average intelligence and a rational mind can figure out that we are not going back to the gold standard in 5 years. Only a delusional idiot from the facist right would think that it is going to happen.

You just use the word "fascist" indiscriminately and apply it to anyone who disagrees with you. Austrian economics is the polar opposite of fascism; the socialist left is fascism's close cousin.

I am convinced that you and Lyndon Larouche are the same person.

I like the potable water standard. People are going to be killing themselves to get to our precious water and bodily fluids. I gar-on-tee it.

weighted wrote:

I don't think we are worth our weight in salt, unless perhaps, we are.

TCB wrote:

I got a little bit off track here. Inflation benefits the borrower and the borrower is the one who needs to be benefited so that they have plenty of incentives to create and search for new innovations that will add more value to the economy. The risk is proportionally lower for the borrower, so people have the incentive to borrow and innovate.

There is a terrible logical discrepancy with Austrian economics, even when you assume that each party will act rationally. People become wealthier by not investing, but lack of investment means that everyone becomes poorer.

Your comments are so bizzare that it's difficult to respond to them. The incentive to invest is the anticipation of PROFIT, not the fear of inflation. Inflation only leads to asset bubbles, such as those seen in stocks, real estate and US debt. One of the world's foremost proponents of Austrian economics, Peter Schiff, is also one of the world's most successful investors. That kinda poses a problem for your argument that Austrian economics is somehow adverse to investment.