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  1. #1
    bigt10 is offline Member
    Join Date
    Dec 2007
    Back The Way you Came

    China / GOld back monetary system

    Now this is cool its bound to happen and our fed will be screwed. China and other countires with piling amounts of US dollars that keep losing their value are thinking of a gold backed currency to stop the inflation and their money depreciating.

    Back to ron paul certain people have warned of these bad practices for a long long long time. There is a reason why the consitittuion says we should only coin money that is gold and silver and not create it.

    Printing money will always get abused by special interests and the governments and they always use it for their own interests.

    In the end it always will fall down, the currency will crash, we will be poor and only 1 more thing to do is gold.

    What china wants is optimal and actually The Peoples freind ron paul was trying to create a bill that allows gold and silver to compete with the dollar.

    ""If you were China and seeing this happen to your National Treasury, would you sit there and do nothing or look for a solution?

    The answer is obvious.

    China is worried about its pile of about $1.6-trillion in foreign reserves, built up during years of U.S. trade deficits, which loses value as the greenback depreciates.

    The excerpts from the above Reuters article shows that China seems to be interested in a gold backed system. If this were to occur, we need to take a serious look at what it means for the price and demand of gold.

    I will give you one simple equation, which you can then apply to any nation, or the economy at large. If the USA were to go to a gold backed standard, that means each dollar in circulation would then have to be redeemable in gold. The current measure of USD in circulation based on private firm analysis is above $14 Trillion USD. The US Treasury claims it has 261,498,899.316 ounces of gold according to its website. If we were to divide the number of USD in circulation by the amount of gold claimed to be on hand in the US Treasury, it would make the price of gold $53,537.00 per ounce.

    You can perform this calculation on any nations currency, if you know the amount of currency in circulation and the country’s claimed national reserves in gold.

    The bottom line is, if the world heads to any form of gold backed currency system, or any world government chooses to make its own currency backed in gold, then two things would happen:

    1. That country will be the best runner up for the next world reserve currency
    2. The valuation on gold will skyrocket beyond the angels

  2. #2
    FallenWyvern's Avatar
    FallenWyvern is offline Senior Member
    Join Date
    Jan 2008
    So put your money where your mouth is and buy some gold.

  3. #3
    Panzerfaust's Avatar
    Panzerfaust is offline Ron Paul Nuthugger
    Join Date
    Aug 2004
    People are to programmed to accept this fiat currency we have today. Basically you get the "It's to late to turn back" approach.
    ***No source checks!!!***

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