Return to a Gold Standard or Introduction of a Commodity-Backed Currency (Including Cryptocurrency Options)

Economy
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Problem:

The current fiat currency system, in which the U.S. dollar is not backed by a physical commodity like gold or silver, has led to a range of economic challenges:

  1. Inflationary Pressures: Since the dollar is no longer backed by a tangible asset, it is subject to inflation and devaluationthrough excessive money printing. This has resulted in a gradual loss of purchasing power for American citizens over time.

  2. Currency Manipulation: Governments and central banks have the ability to manipulate the money supply, which can lead to unstable economic conditions, financial crises, and loss of confidence in the national currency.

  3. Lack of Tangible Backing: Unlike commodities like gold or cryptocurrency, which can be tied to something real and measurable, the current fiat system is largely abstract and disconnected from any physical asset, leading to economic uncertainty and market volatility.

  4. Potential for Loss of Trust in the Dollar: As the U.S. dollar continues to lose value due to inflationary policies, there is a growing risk that international actors may move away from the dollar as the world’s reserve currency. This could have devastating effects on the global financial system and the U.S. economy.

Solution:

This proposal advocates for a return to a gold standard or the introduction of a commodity-backed currency system (potentially with cryptocurrency as an alternative or complement). By tying the currency’s value to something tangible, we can create a more stable and predictable financial system and ensure that the value of the currency is no longer manipulated by abstract economic policies. This could involve one or a combination of the following:

  1. Return to a Gold Standard: The U.S. government would reinstate a gold standard, where the U.S. dollar is directly tied to a specific amount of gold, ensuring that the money supply is limited and the value of the currency is inherently stable.

  2. Commodity-Backed Currency (Including Cryptocurrencies): Alternatively, or in conjunction with gold, the U.S. could tie the dollar to other commodities like silver, oil, or even a basket of assets. The rise of cryptocurrencies also presents an opportunity to experiment with a digital currency that is backed by blockchain technology and an underlying commodity or asset.

Benefits:

  1. Stability and Predictability: By tying the dollar to a physical commodity, such as gold, the U.S. economy would become less susceptible to inflation and speculative bubbles. A commodity-backed currency would limit government spending and money printing, preventing the rampant inflation that often accompanies fiat systems.

  2. Protection of Purchasing Power: Under a gold standard or commodity-backed system, the purchasing power of the dollar would be more protected over time, as it would no longer be subject to devaluation through irresponsible monetary policies. The value of the currency would be tied to tangible assets, which tend to maintain their value better than fiat money.

  3. Restoration of Trust: Returning to a commodity-backed currency could restore confidence in the U.S. dollar both domestically and internationally. People would be more confident in holding the dollar, knowing it is backed by real, physical assets. This could strengthen the dollar’s position as the global reserve currency and restore international faith in U.S. financial markets.

  4. Reduced Risk of Currency Manipulation: With a commodity-backed system, the government and central banks would have less power to manipulate the money supply to suit short-term political or economic goals, thereby reducing the risk of hyperinflationand economic instability. The currency’s value would be based on the actual supply of commodities rather than political will.

  5. Opportunity for Cryptocurrencies: A blockchain-based cryptocurrency could provide a secure, transparent, and decentralized alternative to fiat currency, potentially allowing for greater financial sovereignty and security in the long run. Such systems could operate on a commodity-backed blockchain, providing an innovative way forward for digital currencies.

Challenges and Considerations:

  1. Implementation Complexity: Transitioning back to a gold standard, or introducing a commodity-backed system, would require careful planning and significant adjustments in the financial system. The U.S. government would need to buy up significant quantities of gold or other commodities to fully back the currency. This would likely take time and investment to make the transition.

  2. Potential for Limited Money Supply: One challenge of returning to a gold standard is that the money supply could become too rigid, potentially making it harder for the government to respond to economic crises. The ability to expand the money supply in times of recession could be restricted, though this is also seen as a positive safeguard against excessive government spending.

  3. Market Acceptance and Technological Barriers: For cryptocurrency-backed systems, there may be technological challengesin ensuring security, stability, and public acceptance. Additionally, cryptocurrencies can be volatile, so tying them to commoditieswould be necessary to ensure their stability.

  4. Global Coordination: A return to a gold standard, or the introduction of a commodity-backed currency system, would require coordination with global markets. There could be resistance from other countries to such a change, particularly those that have become accustomed to the current fiat-based global economy.

How This Would Work:

  1. Transition to a Gold Standard: The U.S. Treasury would need to accumulate gold reserves and establish a fixed price for gold that the dollar could be tied to. Over time, paper bills and coins would gradually be backed by gold reserves, creating a more stable system for currency production and management.

  2. Commodity-Backed Currency: The U.S. government could diversify the currency base to include silver, oil, or even a basket of assets that are valuable and relatively stable. A digital currency based on blockchain technology could be introduced as a hybrid system, allowing for modernized transactions while still being tied to real-world assets.

  3. Cryptocurrency: In the case of introducing a blockchain-backed digital currency, a national cryptocurrency could be created and integrated into the traditional banking system, offering a secure, decentralized alternative to fiat currency. This would require the establishment of blockchain systems to facilitate transactions and ensure transparency.

Conclusion:

A gold standard or commodity-backed currency system could bring long-term stability, reduce inflation, and restore public trust in the U.S. dollar. By anchoring currency to tangible assets, such a system would limit government manipulation and create a more secure and resilient financial framework. Additionally, embracing cryptocurrencies or other digital currency technologies could modernize the U.S. monetary system while ensuring it remains tied to real-world commodities, preserving stability and confidence in the currency.

4 Likes
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This policy proposal is absolutely in line with our Constitution, defining fixed weight and measures of precious metals. It also incorporates additoinal national assets to be used for prodiding stability to our currency. It is well articulated and I think is an excellent proposal.

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This will happen slowly but its a blue whale and we have more pressing matters to deal with that will trickle down to ending the Federal Reserve as we know it.

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I realize that ending the Federal Reserve is not as simple as pulling the power cord, but I disagree with you that we have more pressing matters and few resources to take action immediately (unless of course you have some inside scoop as to future monitary policy which you are not sharing in this forum). The Federal Reserve has been stealing our wealth and purchasing power at 3%/yr. for over 100 years. The game needs to stop immediately – it is VERY pressing, and immediate initial solutions can certainly be found to begin its future irrelavence.

For instance, we can replace every board member on the Federal Reserve with loyalists of the Treasury, identify every way that the Federal Reserve has made itself “indispensable” in every sector of our monitary system and assign a team to identify at least 20% of those connections and find a way to replace them with connections that are beholden to the American People and not to the 12 Goliath banks that currently dictate policy and action at the Federal Reserve.

These are simply high-level suggestions off the cuff. I think we should start our “trickling down” right now, instead of waiting. Its not like we dont have enough warm bodies to come up with an attack plan, dont you agree? I am not a monitary policy expert, but I am familiar with constructing large corporate finance-related computer systems over the past 25 years, and if our IT teams waited for things to ‘trickle down’ to us, we would have never built one of the largest communications companies on the planet. We need that “blue whale” to become a “blue minnow” ASAP, and waiting for this to trickle is not condusive to making that happen in a timely fashion, and within the window of the next four year administration. The sooner that we make the Federal Reserve largely irrelavent, the faster we can begin the final ‘slash and burn’ stage. We don’t need to “know it differently” – we need it forever removed from our shores. Just my two cents. :sunglasses:

1 Like
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I believe that we have to much money to be backed by the gold standard but maybe we could back it by the silver standard?

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Our “money” is not really what it might seem – it is simply ‘debt’. It is fiat currency and merely an IOU to the private Federal Reserve (Which in turn is really nothing more than a rich boy’s club run by a handful of wealthy banking families). That said, we absolutely need to dump this currency and get back on the gold/silver standard.

Because the Federal Reserve Note (our “money”) is technically “worthless”, since it is backed by nothing but mere faith and promises, everything else which is based on it (like derivatives) is also worthless. When everyone finds this out, there will be a natural flight out of the dollar and into hard assets that DO have tangible value (from houses, to paintings, to diamonds, and yes…back to GOLD and SILVER, which our Founding Fathers specifically defined as “U.S. money” down to specific weights and measures.

If all of these fiat dollars (80% of which is held outside the U.S.) was allowed to collapse to its true value, and in the process, liquid wealth was allowed to flow into tangible assets during the expectant bank runs, gold and silver would skyrocket to their true values (currently the U.S. govt is suppress the prices to make you think that these precious metals are not worth anything, relative to a false but “seemingly strong and powerful dollar”). This suppression scheme will end when the U.S. runs out of its gravy train of secret oil taxes levied on oil sold in the middle east, funding secret accounts held by the “Plunge Protection Team”, which is being used to NAKED SHORT SELL (Illegally done) gold and silver derivatives and artificially hold down the market spot prices.

Here is where the rub comes in…the rest of the world is dropping the “Petro Dollar” via oil sales in the middle east and starting to use their own currencies (and eventually the BRICS unit). All of those offshore dollars are racing back to our shores and this same Plunge Protection Team that is sucking up all the Treasuries coming back, is becoming overwhelmed. We are in a failing PONZI scheme – much like a store front that shows off beautiful Christmas window dressings to lure customers, while the back of the store is quietly experiencing a devistating but thoroughly concealed 4-alarm fire. The “unFederal” Federal Reserve of private banking families that has taken our monitary system hostage for their own enrichment (in an illegal 1913 dead-of-night congressional scheme called ‘The Federal Reserve Act’), needs to be abolished ASAP (while also minimizing adverse impacts to our current economy, and public and private wealth).

When this crapstorm hits a fever pitch (it is right around the corner now), the ENTIRE WORLD will be on a gold standard, and those who have not converted their wealth to tangible assets, but hold worthless dollars in dollar-denominated accounts, might loose their life savings. I know this went a little long, but I thought I might help a few people here get prepared for what is coming, before the painful reversion back to our former gold standard occurs. It WILL happen – we have no choice. It is how you intend to survive it, that should matter most to you at this time. Hope this helps! God Bless America. :us:

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We may have disagreed on a seperate thread but you’re right on here.