X-Post: Greenspan supports Gold Standard on Fox Business

[ahnuld]

guys stop trolling boro

[DcifrThs]

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guys stop trolling boro

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i take him seriously. and i suck at the interwebz as demonstrated time and time again.

Barron

[ArturiusX]

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guys stop trolling boro

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As soon as he stops trolling Greenspan.

[CrushinFelt]

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guys stop trolling boro

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As soon as he stops trolling Greenspan.

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lol

[kimchi]

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Back to business. Borodog, any idea how much gold would be required to hold if they were to revert back to the last used rate taking inflation into account? Like how many tons that would require? Is there enough gold on earth?


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Not as much as you think since if this were to happen the price of gold would probably become insanely high.

I think a more plausable address of the fiat currency problem would be for people to hold gold on deposit and use a bank card (gold card?) to make a purchase in 'gold grammes' instead of fiat currency. Most countries have made their own bank's printed money legal tender however, so this might just be an option if both trading parties were to agree on gold grammes as suitable for payment. A steady increase in the use of this method might eventually replace the use of the current batch of fiat currencies.

Some companies such as GoldMoney are already working on this, and it would obviously be easier (and cheaper) settle payments overseas.

Gold will become the new global currency of the NWO [img]/images/graemlins/smile.gif[/img]

[Borodog]

In the other thread I said I think gold = DOW = 8000 is not implausible.

Gold reached $800/oz at the end of the 70s. Even accepting government inflation numbers, inflation adjusted that's like $2500/oz now. We've got another 200% rise in gold to hit that historical mark. And given that I think inflation has been systematically under measured for getting close to 20 years now, that could be maybe more like $3-$4k.

Gold was basically remonetizing at the end of 1979/beginning of 1980, until gold dumping by central banks and the IMF broke the price of gold. I doubt if CB & IMF hold enough gold to do that again. They've been periodically dumping gold for 40+ years (first began in the early 70s, actually).

In fact the fraction of the world gold stock in private hands is at least 82%, and may be as high as 91%. It was less than 50% as of 1966.

If central banks and the IMF attempt to dump gold again, I'm buying more, not less.

Some back of the envelope calculations show that M2/US fraction of the gold stock is roughly $5k-$6k per oz. However, I just assumed that the US holds 1/4 of the world gold stock, since I don't know the actual fraction.

In reality of course, since gold would become so valuable under such a scenario, silver would almost certainly also remonetize for small purchases, and that would have a significant effect.

[ahnuld]

just for the record I gave salazar a one day ban because of his trolling of Borodog + his lack of respect for this forum which was made apparent to me by the PM I just received.

"2) When you use this forum, you are expected to be civil, courteous and respectful of other members."