A total of 165,000 tonnes of gold have been mined in human history, as of 2009.[1] This is roughly equivalent to 5.3 billion troy ounces or, in terms of volume, about 8,500 m³, or a cube20.4 m on a side. The world consumption of new gold produced is about 50% in jewelry, 40% in investments, and 10% in industry Wikipedia
The world population is the population of humans on the planet Earth. An automatically updated daily calculation by the United States Census Bureau[1] estimates the current figure to be 6,889,500,000.Wikipedia
How would the world return to a gold standard when the amount of gold ounces mined in human history is less than the ever growing amount of people on earth..
Hardly anyone here would advocate a state-administered gold standard… Most would advocate the abolition of legal tender and the adoption of natural market currencies, whatever they might be. A digital currency could be based off a whole basket of sound commodities.
Besides, you can hammer gold into very, very, very small measurable quantities with modern technology.
It’s a bit of a stereotype to assume that the Austrian school are all neo-luddites with a hard on for gold coins. Sound money backed by something other than criminality is the goal.
So you’re saying that currency would function like a commodity based ETF. The underwriter or country would be required to hold a basket of commodities including gold to back their paper
“Countries” are bad. Get rid of Government paper. Bank currency with a commodity back stop. I get it. What I’m searching for is a working solution. A well thought solution detailing how to resurrect a working financial system after the present one implodes.
A return to the gold standard? Nope. The numbers don’t work. I don’t care how flat you hammer it.
Private banks issuing currency based on their commodity holdings? Ok. How will the banks acquire these commodities. Buy them with fiat money ,cash in their T notes? Nope. The system imploded no one wants that crap any more. What’s left on the balance sheet? A bunch of mortgages on postage stamp pieces of property the only real commodity are scrap steel and copper pipes and wire.
Possibly Mining companies and large Agri business would print currency based on their holdings and proven reserves.
Would communities that are commodity rich have an unfair advantage over communities that are only rich in manufacturing and technology. ( I use the word communities so I don’t have to defend myself for being a friggin statist.) .
The devil is in the details. Even a crumbling structure that offers shelter is preferable to standing amidst the rubble and cursing the rain.Every one can point out the flaws in the system. What we need is more builders and less demolition men. Sorry about the use of the word “we” what I meant was a bunch of individuals with a common purpose.
Money can only emerge in the market. You cannot plan it. This is fundamental Austrian insight
So lets all sit on our hands and wait for the coming disaster. Something better will emerge from the dust and rubble. Yep good plan Lib. I’m still waiting for something to emerge on the site of the World Trade Center.
“We” is your problem. “We” don’t have to do anything and “we” don’t need a standard. Eliminate coercion (legal tender laws, capital gains taxes, etc.) and simply observe what voluntarily gets exchanged in a free market. Paper, digital bits, services, promises, GLD shares, land, bullion, labor, time-shares, food, GOOG shares, shells, condos… It’s all good.
Gold would function with silver and other commodities as money. I think liberty student was making the point that money spontaneously emerges from voluntary exchanges, not social decrees and mandates.
Currency is the common denominator for all these exchanges. The free market shuts down without a trusted store of value. Not a solution. Show me the money.
Currency is the common denominator for all these exchanges. The free market shuts down without a trusted store of value. Not a solution. Show me the money.
This is incorrect. The market shuts down without a trusted medium of exchange, which is ample reason to believe that one will emerge in the market. In any case, it’s not as if we currently have to start from scratch. I think that there are past prices which people can rely on to see value in money, whether it is gold or competing paper currencies (with gold reserves). Regarding how money comes into existence, I would suggest looking up Mises’ regression theorem.
“We” is not my problem. “We” is all our problem or possibly our solution. If I own property with commodity potential or proven resource. I need you to build my tractor mine my metals or refine my oil. We will all need a trusted form of currency to make our exchanges. If we can find a working solution to fiat money now, we will be better prepared construct a better system of trade in the future. With or without government the farmer, the miner and the heavy equipment builder will have to have a central plan. Corn doesn’t just emerge, it requires cultivation. Only weeds emerge.
No one will take you seriously until you provide a working solution to fiat money. I like Ron Paul. The problem is he comes off like another problem voicer and not a problem solver. If we can come up with a viable solution that works in the 21st century we will be better prepared for the future after fiat money is extinct. Gold and silver were used as a store of value because they don’t deteriorate over time. Is our future store of value going to be based on these scarce resources or a basket including platinum palladium rare earth elements moon rocks and perishables?
Criticism is valuable whether it be constructive or destructive.I’ll start a working plan and you can shoot holes in it or add to it. This is going to take me some time and probably a new thread. Just one thing, if you’re gonna take a pot shot offer a real solution. Bullets and band aides only!
I’m applying for resources from the Mises community because I firmly believe that Austrian economics offer the only honest solution.
If I wanted a load of bull shit I’d call my Congressman. He’d probably tell me to load up on Muni Bonds. Don’t worry be happy
Sorry Neilso. I couldn’t finish watching all that. I’ve heard it all a million times before in better english. Just more people telling you the problem with out offering a viable solution. It’s fun to be able to say “I told you so”, but there isn’t much profit in it.
The solution is freedom. Barter leads automatically to a common medium of exchange. No plan required.
Any forced plan is going to limit my freedom to trade with people the way I think is best. Don’t use force against peaceful people. It’s hurtful and destructive and that’s not nice!
