Gold Standard

[Nebulous's iconNebulous]

http://www.debate.org/gold-standard/

In the gold standard system, the standard economic unit is a predetermined weight of gold. There are several types of gold standard systems, but none are currently used by any country as the basis for a monetary system. Some countries do, however, hold significant reserves of gold, so the gold standard could potentially arise.

Arguments in Favor of the Gold Standard Debate

First, gold is an appealing metal to use. Gold is shiny, beautiful and rare. Gold is used for fine jewelry and artwork and is definitely associated with wealth. If gold is the standard, people are drawn to the beauty of the metal and it gives a certain appeal to the financial state. Another advantage of the gold standard is that it helps to restrict inflation. Gold is available in limited quantities, so this limitation helps prevent abuse of inflation. If citizens notice that inflation is happening, they can simply exchange paper money for gold from the government at a fixed rate.

Another benefit is that the money grows at a steady pace, helping to keep prices stable. If gold becomes overvalued, then production of gold increases which helps to bring down the value. Additionally, if gold is undervalued, then production decreases and the values move upwards. Gold was a financial item for thousands of years. There is an incredible history of gold used in economic situations, so the gold standard has the backing of history throughout the ages.

Arguments Against the Gold Standard Debate

While the advantages in the gold standard debate are great, there are also a number of disadvantages. First, it is incredibly hard to transition to a different monetary system. The biggest problem is, of course, that the Federal Reserve is not in possession of enough gold to back all of the paper money in circulation. While this is a problem, this disadvantage is definitely not an ultimately unsolvable issue. Next, while gold has a certain appeal as a highly valued object, it is not connected to the standard of living that is desired. The disconnect between value and standards of living might not cause issues, but the disconnect could also wreak havoc. For example, even if gold is mass-produced, it does not mean that standard of living increases for all involved.

Gold mining is absolutely necessary in order to utilize the gold standard. Unfortunately, this mining consumes a significant amount of resources. The resources dedicated to mining gold are often of much better use in other ways. The fact that gold costs money to mine can cause difficulties with the economy.

Thoughts?

 

[WHO IS SERAFIN]

I would like to see a gold and silver standard. Silver used up to a certain amount and then gold used at the higher amounts.

Gold and silver has value it would have kept our government from printing trillions in worthless dollars and sky rocketing debt. To only spend within there means. The gold standard limits governments power.

 

[DrLeftover]

But.

Why Gold?
It is essentially useless except as decoration, unless you need a tooth filled, but that hardly accounts for its value on the open market.

from 2012:

... ...
Gold itself has little practical, here and now, real world, true, value. Somebody just said that a modest sized lump of gold could buy a lot of ham sandwiches, and maybe the car to bring them home in. That is the cash value of the gold, a worth assigned by the market. By itself, as a golden nugget, you're talking about a paperweight. If you did some hammering and polishing, the gold can go from a nugget to a set of earrings and a necklace, but still, it has no value other than looking nice hanging from a pretty woman's ear. As far as practicality, the hammer has more inborn value than the earrings. But most people who claim to be civilized would say that the gold is worth a lot more than the hammer that made them.

... ...

Some will answer that Gold is 'pretty', or 'shiny', or that it can be polished to a high luster. They point to the fact that it does not rust, tarnish, or corrode. Others remark on its scarcity, and the fact that in most cases it can only be gotten with a great deal of effort. Unless it is that you have Rumplestiltskin on staff who can spin straw into it. But failing that, start building a smelter.
Well, yes, that is all true, except the bit about the spinning, but still. Some of those very facts are also reasons not to value the metal. It is basically useless for weapons or tools. In fact, until the advent of the computer age, there was no practical reason to use gold in large industrial applications. For instance, gold shrugs off most liquid acids and alkalis, but nobody made gallon jugs of pure gold to put hydrochloric acid in, instead, high grade glass, with almost no impurities in it, was used until low organic component plastic was developed, or even Teflon.
Even now where a highly conductive solder is needed that will not corrode in an application where it could not be hermetically sealed, its low melting point might be a disadvantage. In short, there is probably a better option given the innate cost in using gold in large quantity unless you're building a spacecraft where your plastic coating might peel off the circuit board during launch. In that case it is worth using gold.

http://themediadesk.com/files8/gold.htm

 

[Webster]

Returning to the godl standard? A bad idea, for the reasons below....
Excerpt..

Paul Krugman was writing a bit last week about the enduring appeal of economically harmful hard money policies and whether there was some way you could tie to this to the class interests of the super-wealthy. I'm skeptical, largely because as you move into the further reaches of crankery you find plenty of hard-right monetary views that clearly make no sense.

For example, the new issue of The Weekly Standard has a piece urging the GOP to "Go Bold With Gold" as in the gold standard. This idea pops up in right-of-center circles constantly, but it's a pure figment of ideological thinking totally devoid of upside to anyone at all. Here are 7 reasons it's a bad idea:

1) A gold standard wouldn't stabilize inflation
2) A gold standard wouldn't stabilize exchange rates
3) There's no inflation problem to cure
4) There's nothing stopping you from writing gold contracts
5) Gold recessions could last for years
6) The gold standard wouldn't eliminate political money
7) Gold-backed money reduces the supply of gold(Vox)

 

[WHO IS SERAFIN]

But.

Why Gold?
It is essentially useless except as decoration, unless you need a tooth filled, but that hardly accounts for its value on the open market.

from 2012:

... ...
Gold itself has little practical, here and now, real world, true, value. Somebody just said that a modest sized lump of gold could buy a lot of ham sandwiches, and maybe the car to bring them home in. That is the cash value of the gold, a worth assigned by the market. By itself, as a golden nugget, you're talking about a paperweight. If you did some hammering and polishing, the gold can go from a nugget to a set of earrings and a necklace, but still, it has no value other than looking nice hanging from a pretty woman's ear. As far as practicality, the hammer has more inborn value than the earrings. But most people who claim to be civilized would say that the gold is worth a lot more than the hammer that made them.

... ...

Some will answer that Gold is 'pretty', or 'shiny', or that it can be polished to a high luster. They point to the fact that it does not rust, tarnish, or corrode. Others remark on its scarcity, and the fact that in most cases it can only be gotten with a great deal of effort. Unless it is that you have Rumplestiltskin on staff who can spin straw into it. But failing that, start building a smelter.
Well, yes, that is all true, except the bit about the spinning, but still. Some of those very facts are also reasons not to value the metal. It is basically useless for weapons or tools. In fact, until the advent of the computer age, there was no practical reason to use gold in large industrial applications. For instance, gold shrugs off most liquid acids and alkalis, but nobody made gallon jugs of pure gold to put hydrochloric acid in, instead, high grade glass, with almost no impurities in it, was used until low organic component plastic was developed, or even Teflon.
Even now where a highly conductive solder is needed that will not corrode in an application where it could not be hermetically sealed, its low melting point might be a disadvantage. In short, there is probably a better option given the innate cost in using gold in large quantity unless you're building a spacecraft where your plastic coating might peel off the circuit board during launch. In that case it is worth using gold.

http://themediadesk.com/files8/gold.htm

Whats this guy talking about? Gold and silvers is used in.....

plasma t.v.s

computers

tablets

cell phones

solar panels

nuclear energy for such things as control rods

silver is fantastic for soldering.

chemical production.

photography and x-rays

used in medicine to kill bacteria

used in engines.

water purification

injections to treat several ailments

used in aerospace

glass making

uses for these medals just keeps increasing make them the best investment you can make in modern society.