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1. Sir, whatever story you intended to link at Zero Hedge, has no linky.

2. I like the idea of currency backed by gold and silver. Since I am 75 YO I grew up in a system that was backed by gold and silver. But it is a system that can only work in a population the size of the worlds pre 1900’s population. There simply is not enough gold and silver to back the worlds currencies.

   1. There is more than enough gold and silver in the world for ANY size population. The problem is that banking cartels are controlling the value of g & s and keeping them artificially low. If they were allowed to reflect their true value their prices would act more like cryptocurrencies, fluctuating with demand.

   2. There is enough gold and silver. Gold would range between $8k and about $12k per troy ounce, silver would range between $400 and $800 per troy ounce. The traditional 16/1 ratio of silver to gold is likely to organically reassert itself. Fiat currency would be easily traded for physical gold and silver, it would just take a lot of fiat to buy not a lot of metal. Those of us who currently hold precious metals would become very rich when converted to fiat currency. Oh, and it wouldn’t be just gold and silver, it would be a whole basket of precious metals, to include platinum, palladium, rhodium, iridium and maybe some I haven’t even considered.

3. It would seem to be great for gold to be $8,000 to $12,000 per ounce.

   But what would a gallon of gas cost? Or how much would a good 4×4 truck cost in the new metric of $12,000 US dollars to one ounce of gold?

   I would imagine it would shock people

   1. We’re talking purchasing power. That 4×4 is not going to cost much more than it does today, if any. The purchasing power of gold will skyrocket vs the purchasing power of fiat currency. The purchasing power of fiat is decreasing by about 3 to 6% per year anyway and that’s the plan coming from the FED. Going to precious metals backed currency, redeemable in precious metals should help to hold inflation in check. In point of fact, over time, the purchasing power of fiat should start going up as the economy stabilizes. This would also encourage the FED to start cutting back on the inventory of fiat currency that is currently in the economy. As the amount of fiat currency in the economy goes down, the purchasing power of the fiat currency in circulation will go up.

      This is starting to sound like a primer on Austrian economics. I’ve been studying this for a little while. You’ll find the Austrian economists are all for a precious metals backed economy. So am I. It all depends on how much fiat currency the government leaves in the system on what the value of gold and silver, etc. in fiat will be.

      The reason a new F-150 will cost $45K+ today is because there is too much money in the system and the morons in DC and the States keep artificially tinkering with the minimum wage. As with the value of gold, etc. the value of labor should be set in the free market, not by politicians and bureaucrats and the almighty FED.

4. The real reason that Nixon took the US off gold was that other countries were short circuiting our gold. In other words the US was honoring exchange of US dollars for gold back then. Many countries [France being the largest demander] were building up cash reserves to the tune of 100s-of-millions of dollars then taking shipment of gold right into their coffers. Nixon did the right move at the time–to stop the transfer of gold overseas from our treasury and the destruction of US dollars once gold was transferred.

   What really should of happened was that the US dollar was backed by gold- but you MFer countries can’t exchange it. It’s our gold and our printed dollars. Every dollar printed is backed by gold but that doesn’t mean you countries can take our gold in exchange.

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