With gold high and the dollar low, does it make sense to use gold to back the dollar to improve the economy?
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Discuss
Javier Huizar on March 14, 2008, 5:02 AM
Can’t happen. Google gold reserves value held by countries central bank. US has same amount as France… Scarry!!! Economy too big in dollar value, there isn’t enough gold. after WW2 US had 80% of worlds gold reserves, reconstruction of europe gave us opportunity to create a DOLLAR standard. Instead of gold. During Nixon era London Central bank wanted the gold for 4 billion worth of dollars, literal run on the US central bank would have occured. Nixon prevented that by removing backing of us currency from gold to “faith” Our currency exploded, markets, capitalizations etc… Eventually all fiat currencies devalue to nothing, it’s happened to mexico, brazil, france, germany, china, russia, etc, etc, etc…. In relative terms if US currency has lost 80% of it’s RELATIVE value to eruo since it’s early 2000 creation, then inflation has been that much not what is reported. High inflation makes old debt cheap in relative terms, refinance and create new debt. commodities that are sold in dollar like oil get paid less in relative terms as dollar continues to devalue. Do the math for oil to keep it’s price in relative terms to what it has lost because it’s sold in dollars it has to hit 140 bucks a barrel in relative terms. I could keep going, but instead, everybody do your homework. After the world gets sick of this volatility then global electronic currency is next logical evolution. Us government in meantime should start mining gold and increase it’s reserves, play it’s hand in that end. Also earth’s land grabs for resources is over, next logical evolution is space. Resouoces are there. Everybody I’ll leave you with an idea that money is nothing more than a tool to maintain civility and continue progress. Want to be happy then lose any and all EMOTIONAL attachment to physical material posessions. In the end they don’t matter, health youth and happinness are worth much more, can’t buy any of them with all the money in the world. Don’t say i didn’t tell, if only you would have listened. LOL. JH
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