Monetary standards

[Bono]

Fiat, since there is not longer enough precious metal to back the amount of money needed to keep the economy going.

There is, you just have to value the dollar low enough. I think one ounce of gold should have to equivalent to about $4000 in order to take in acount all Federal Reserve Liabilities.

[Bono]

There is, you just have to value the dollar low enough. I think one ounce of gold should have to equivalent to about $4000 in order to take in acount all Federal Reserve Liabilities.

Murray Rothbard wrote an interesting article, "The Case for a Genuine Gold Dollar." He calculated that, in 1981, one ounce of gold would have to be defined as equal to $676 in order to cover Federal Reserve liabilities. I don't know how much the definition has changed since then, however.

Yea but that value is for what the liabilities were in 1981. Someone in a forum I know just calculated that for current(well a year ago's) values, and the dollar would have to be worth 0.00025 ounces of gold.

[Bono]

What is your point? We had inflation or deflation based on the discovery of gold.

Why do you support giving other countries purchasing power in our economy in exchange for nothing? It is completely within the scope of the Federal Reserve's power to maintain 'price stability.'

What's so wrong with that? What would "other countires" want to buy to begin with, and still what tbney bought would benefit the US economy.

[Bono]

Fiat, since there is not longer enough precious metal to back the amount of money needed to keep the economy going.

There is, you just have to value the dollar low enough. I think one ounce of gold should have to equivalent to about $4000 in order to take in acount all Federal Reserve Liabilities.

Yeah, but in order to make a silver or gold piece the right size compared to value and still keep enough coinage in circulation to meet the needs of the econmy,the dollar would have to be the size of a dime or nickle at most.  Given the way that people loose pocket change, I doubt that going back to that standard would be too practical.

Correction, in order to make a silve peice hat would work, it would have to be that small.  A gold $50 piece would be, again, only about the sze of a dime, if that.  I don't even think that.

Or it coudl just be redeemable.

[Bono]

What is your point? We had inflation or deflation based on the discovery of gold.

Why do you support giving other countries purchasing power in our economy in exchange for nothing? It is completely within the scope of the Federal Reserve's power to maintain 'price stability.'

What's so wrong with that? What would "other countires" want to buy to begin with, and still what tbney bought would benefit the US economy.

No, it would just have an inflationary effect.

Temporary, plus you still haven't told me waht "other countries" could possibly want to buy. Not to mention the market will take that into account.