Should we return back to the Gold Standard?

"A History of Fiat Money in the United States"

http://www.kwaves.com/fiat.htm

In most cases, a fiat monetary system comes into existence as a result of excessive public debt. When the government is unable to repay all its debt in gold or silver, the temptation to remove physical backing rather than to default becomes irresistible. This was the case in 18th century France during the Law scheme, as well as in the 70s in the US, when Nixon removed the last link between the dollar and gold which is still in effect today.

Hyper-inflation is the terminal stage of any fiat currency. In hyper-inflation, money looses most of its value practically overnight. Hyper-inflation is often the result of increasing regular inflation to the point where all confidence in money is lost. In a fiat monetary system, the value of money is based on confidence, and once that confidence is gone, money irreversibly becomes worthless, regardless of its scarcity. Gold has replaced every fiat currency for the past 3000 years.

The United States has so far avoided hyper-inflation by shifting between a fiat and gold standard over the past 200 years.

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The arguement against it is that there is too much money to be backed my precious metals. That in itself is the problem though. The money supply has gotten way out of hand. It needs to be decreased. What Ron Paul suggests is legalizing gold and silver as legal tender, alongside the fed, allowing a weening down over a period of time.

Good question. Did you know there is not enough gold in the world to back American dollar?

the present customary is consistent with no longer something, so returning to the wonderful could make the forex properly worth greater desirable than it is contemporary fee, (i.e. say, now it is properly worth .25 cents on the dollar, decrease than gold it may upward push to a hundred cents) definite, we could have much less money to spend yet they could purchase greater. have self belief it or no longer, I undergo in suggestions while a dollar grew to become into properly worth exceptionally much a dollar. one ought to spend $10.00 and purchase nutrients for each week, for 4 people. A loaf of bread value 10 cents and a fowl grew to become into 29 cents. are you able to think of a meal for 4 people costing decrease than 0.5 a dollar? The superb grew to become into dropped so the Federal Reserve economic business enterprise ought to create greater forex and Congress ought to spend greater, yet all it did grew to become into enhance costs and cut back the cost of the dollar. Returning to the wonderful could help the persons via giving them greater spending power consistent with dollar, regardless of much less money.

http://www.visualizingeconomics.com/2008/05/27/us-...

Shows a visual history of US money since 1774. The gold standard finally produced so much economic misery it was abandoned for domestic use in 1933. The system we have now is not trouble free, but it is better than it was.

" do not crucify mankind on a cross of gold"

It might be impossible to do, considering the amount of debt the country now carries.

And where exactly would you get all that gold from?

It's still "voodoo economics" no matter what you're reason is...

I don't care what Ron Paul says...

Republicans need to learn that you can't just go changing the numbers when you don't like what they are telling you...

We're broke... deal with it.