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Thread: Gold standard = fiat money in disguise

  1. #1

    Gold standard = fiat money in disguise

    http://the-moneychanger.com/articles...m_standard.php

    The always interesting, Money Changer

  2. #2
    stoneFree
    Guest
    Equating gold to fiat is hyperbole, but you never fail to entertain, Franklin, thank you. I will take gold, a gold standard, or a gold/silver standard over unbacked paper debt notes & electronic blips any day of the week. Yes, the gold & silver markets are a rigged game. The banksters control the Comex & LBMA exchanges via massive unbacked paper derivatives (naked shorts) while regulators look the other way. Every day every trade. But even in the face of that control, gold & silver have proven to be an excellent store of wealth, a preservation of purchasing power. While America was on a metal standard (prior to central banking), we witnessed stable prices (little inflation) and unprecedented prosperity:
    http://oregonstate.edu/cla/polisci/s...665-2005-1.pdf

    Furthermore, the banking cartel is collapsing, fiat is ending, legal tender laws will be repealed and we'll use whatever we want as money. The end game is upon us, and that controlled market will be ending soon and then true price discovery will begin. At that point you'll be quite pleased with what you've buried under the barn. I received this in email today:
    A subscriber sent me a link to the London Gold Exchange which closed their doors PERMANENTLY today. Here's the link:

    www.londongoldexchange.com

    At first I thought they might be related to the London Metal Exchange but they are not. Just similar names. Here's the description of the London Gold Exchange from Wikipedia:

    "London Gold Exchange is a digital currency exchanger founded in 2001. The London Gold Exchange is owned by LGE International LTD., an offshore company registered in Belize, with offices in London, England and Hong Kong. London Gold Exchange operate 2 franchises, one in the UK and one 'International' which covers everywhere other than the UK. The UK administration office in Central London, with staff based in locations around the UK. The International administration office is in Hong Kong, with staff also operating from mainland China. Technical staff also operate from locations in Australia."

    Yes. This was a DIGITAL gold exchange playing in the gold DERIVATIVE markets. From other articles the London Gold Exchange claimed to be the LARGEST e-gold exchange in the world.

    Hmmm...

    This surely can't be good news for their customers or the COUNTER PARTIES on the other end of these paper/electronic gold derivative transactions. The ripple effect of an implosion of gold and silver derivatives will set off the long awaited "Weapon of Mass Financial Destruction". I doubt this will be big enough to start the crash but it is definitely a sign of things to come.

    Then again, there is not much difference between an e-DIGITAL market and the COMEX market as both are just electronic derivatives of gold and silver. It's possible that September will be the largest volume month for COMEX silver in history... meaning north of 3,000,000 contracts traded representing over 15 Billion Ounces of SILVER! To add some context there's only about 30M ounces of physical silver available for delivery in the COMEX warehouses which represents a 500-1 ratio of paper trades against physical silver available for delivery in the month...and this is how the price is set for physical commodities in this age of paper Ponzi Schemes.

    I know it is difficult to ride out these slams but this IS the end game so...

    STAND STRONG!!!

    Obviously, it looks like we are going to have to EARN the future rewards on our physical gold and silver investment once again. So be it!

    We saw it coming long ago and IF you survive another few months with your METAL IN HAND then you will be one of the ONLY investors in the world to have preserved their wealth after the CRASH.

    Keep and eye out for the END of the THIRD quarter as there should be MANY surprises in OCTOBER.

    For those of you sweating this one just pop this in your mouth!

    Your Silver Pacifier
    http://www.roadtoroota.com/public/584.cfm

    May the Road you choose be the Right Road.

    Bix Weir
    Last edited by stoneFree; 09-26-11 at 07:39 PM.

  3. #3
    Bimetallism has its own problems mainly Gresham's Law during shortages.

    I do know that Europe was on a de facto silver standard for hundreds of years prior to the gold standard.
    I also know that the gold standard is not all its cracked up to be.

    A gold standard means gold as reserve currency. Reserve currency means the initial pool of assets to back whatever notes some institution may issue. There is nothing really stopping an institution from issuing more notes than reserves to back it.

  4. #4
    When the colonies were running out of gold and silver coin, they used colonial script backed by some agricultural products.
    This worked quite well for them.

    The Bank of England, through Parliament, put the brakes on the colonies usage of colonial script.

    Benjamin Franklin was of the opinion that THIS was the cause of the American Revolution.
    Last edited by shikamaru; 04-21-12 at 11:32 PM.

  5. #5
    Senior Member Michael Joseph's Avatar
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    Quote Originally Posted by shikamaru View Post
    It should be noted that the American colonists were restricted to the gold standard by the Lords of Trade and Foreign Plantations (a committee of the Privy Council).

    When the colonies were running out of gold and silver coin, they used colonial script backed by some agricultural products.
    This worked quite well for them.

    The Bank of England, through Parliament, put the brakes on the colonies usage of colonial script.

    Benjamin Franklin was of the opinion that THIS was the cause of the American Revolution.
    check this out...

    seems interesting in light of this
    The blessing is in the hand of the doer. Faith absent deeds is dead.

    https://www.lawfulmoneytrust.com

    ONE man or woman can make a difference!

  6. #6
    stoneFree
    Guest
    Nice $20 coin but only weighs 7.96 grams.

    With silver at $30 an ounce, calculating its silver value...

    (30 × .0321507466 × 7.96 × .9999) = $7.68 USD
    Last edited by stoneFree; 10-02-11 at 05:14 AM.

  7. #7
    Quote Originally Posted by stoneFree View Post
    Nice $20 coin but only weighs 7.96 grams.

    With silver at $30 an ounce, calculating its silver value...

    (30 × .0321507466 × 7.96 × .9999) = $7.68 USD
    Good catch!! I was about to spring for 3 of 'em ...

    At 7.96 grams is about less than a third of a troy ounce.

  8. #8
    Senior Member Michael Joseph's Avatar
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    apologies. Thanks stoneFree
    The blessing is in the hand of the doer. Faith absent deeds is dead.

    https://www.lawfulmoneytrust.com

    ONE man or woman can make a difference!

  9. #9
    Quote Originally Posted by Michael Joseph View Post
    apologies. Thanks stoneFree
    No need to apologize.

    Thanks to you I found a pretty silver coin embedded with an emerald and crystals sold by the Canadian Mint .

  10. #10
    Quote Originally Posted by stoneFree View Post
    Equating gold to fiat is hyperbole, but you never fail to entertain, Franklin, thank you. I will take gold, a gold standard, or a gold/silver standard over unbacked paper debt notes & electronic blips any day of the week.
    The article was written by someone else. Franklin presents it on his site.

    I have to say that I agree with the article that the gold standard is fiat money in disguise.

    The reason it is fiat is that the gold is exchanged for paper and vice versa instead of valuing gold in silver in a bimetallic standard.
    Silver is demonitized.

    A note or bill of credit represents the value of money.
    Money is gold, silver, and copper coin.

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