What Is a Gold Standard?

What Is a Gold Standard?


Before 1974, U.S. dollars were backed by gold. This meant that the federal government could not print more money than it could redeem for gold. While this constrained the federal government, it also provided citizens with a relatively stable purchasing power for goods and services. Today's paper currency has no intrinsic value. It is not based on the value of gold or anything else. Under a gold standard, inflation was really limited. With floating value, or fiat, currency, however, some countries have seen inflation reach extremely high levels—sometimes enough to lead to economic collapse. Gold standards have historically provided more stable currencies with lower inflation than fiat currency. Should the United States return to a gold standard?

Return to the Gold Standard ?

The Gold Standard has returned to mainstream U.S. politics for the first time in 30 years, with a “gold commission” set to become part of official Republican party policy. Talk of a gold standard is back in focus in politics for the first time in three decades. The U.S. Republican Party will call next week for a commission to examine the possibility of returning the American currency to the gold standard .Rep. Ron Paul, (R-TX), weighs in.

Peter Schiff : our economy grew more on a Gold Standard than since we left it

Peter Schiff : the idea that there is not enough Gold in the world is ludicrous it does not matter how much gold there is , is prices are just going to adjust to the level of gold that exists , money needs to be scarce that's what makes it valuable if it was plentiful if there was all the gold that we needed then it will have no value what makes it rare and valuable is that it's scarce . And if you look at it historically the gold supply increases by one or two percent a year that's it that predictable pretty consistent and it works great , we had the industrial revolution on a gold standard , people always well our economy cannot grow on a gold standard , our economy grew more on a gold standard than since we left it , if you look at the standard of living of the average American from let's say 1800 to 1900 and compare the way the average American lived and the way he lived at the end of that century and then compare that to the changes that are made since we've been on a fiat standard : it 's a much bigger difference , the standard of living rolled out faster and imagine how much wealthy your society will be how much less we would be all working how much prosperity and leisure we would all enjoy if we had continued on the gold standard for the twentieth century , instead we went off it and we sacrificed a lot of economic growth in the process .....- Peter Schiff in a recent Interview

3 Ways a Gold Standard Can Work

Steve Forbes is championing a return to a gold standard in five years time. together with Peter Schiff and Ron Paul , If Ron Paul become President in 2013. He will use Gold Standard for US dollar to make it valuable again.Paper money like Dollar, Yen, Euro, and rest currency are worthless. They are not valuable. Gold, Silver, Diamond, Ruby, Sapphire, Emerald, and other GEMS are worth a lot. If you go back in time like in Middle Age and you bring a currency from your country. You want to buy food and you give them your currency. You know what they going do they are going laugh at you. They say paper are worth nothing. Paper money is not just a mere userfriendly substitute for gold, like it is portrait to be and taught in schools; this is a dirty lie. Paper money is a means for power institutions (states, banks,..) to steal your valuables or fruit of your labor by imposing a fantasy trade item of which the value they manipulate as they wish. They can do this because violence is inherent in this system and all of humanity is oppressed by these institutions. Yes the world has changed; now we all are slaves