What Will The Coming Gold Standard Look Like

Monetary Metals's picture

I gave a talk at FreedomFest last month. Unfortunately, the video was not recorded (not even the projector worked). However, the topic is so important that I recorded the talk back in my office, to put a video to put on the Internet. My talk covers 6 areas:

  1. Two pseudo gold standards
  2. What do people need from a monetary system?
  3. What is the role of the banker?
  4. Why does gold circulate or not circulate?
  5. A working definition of the gold standard
  6. How do we get from here to there?

The video can be found on YouTube here or watch it below. For those interested in additional reading material, see my articles on why the world needs an Unadulterated Gold Standard, how interest rates are set in a gold standard and the need to remove capital gains tax on gold (and why that isn’t cronyism).

© 2017 Monetary Metals

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bluskyes's picture

Gold doesn't need any fancy schemes to receive a man-made title of "standard' Gold is the standard, it always has been, always will be - otherwise nobody would talk about it, and no bank would  hold it. Like silver.

Bluntly Put's picture

There is no need for a gold standard for international trade. Say 2 nations want to trade, they negotiate a deal and codify the deal in software, encrypted blockchain.

They post gold collateral for the deal that is each participant is awarded so many coins that relate directly to a weight of gold.

As the trade is conducted, milestones are recorded, coins are awarded and the blockchain updated. At the end of the trade, whoever has more coins gets that much gold from their trading partner.

This is how trade happened before WW1 with gold bills of credit, essentially.

1.21 jigawatts's picture

So yeah, HOW DO YOU coax scared lemmings into exchanging their PMs for hard goods? 

All they have to do is ... actually do it.  But they need to be given permission first.

Yeah, like that game called "Chicken".

And in the event that does start happening (perhaps more will follow the first brave person's lead) sure, the price will start rising and thus most won't spend it on real goods.  PM holders would love some volatility, even a little teeny tiny bit.  If gold is "going to the moon" you simply won't want to spend it. 

Ya read story after story on houses and such being purchased with Bitcoin. 

When was the last time you read a story about "Million Dollar Home Purchased With Bullion"??? 

Have fun posting or looking for ads on Craigslist saying "will trade for gold." 

People will be like, "Ya mean that heavy, ancient stuff that Jews have been manipulating with paper since I was born?"

Oh and good luck waiting for Congress to declare ETFs illegal.  Cuz at the end of the day thats what PM bugs are really waiting for, whether they realize it or not. 

VWAndy's picture

 We must go thru a bartering phase to correctly reset all values first. Otherwise team fiat will simply trade as many fiats as it takes to get all the gold.

  Secondly Gold is barter! Dont know where this guy learned mental gymnastics but he is pretty good at it.

Maestro Maestro's picture

You made a crucial observation there. Thanks for sharing.

VWAndy's picture

 Thats one the goldbugs seem to have a hard time grasping. Fiat and a gold standard cannot coexist.

Farqued Up's picture

The banksters need global currency for the equivalent of a huge mass so that a torpedo strike can be isolated or act as a giant "heat sink". They can misbehave a lot more with less consequence. There's a bottom to every barrel and even aircraft carriers are sinkable.

Hubris, greed, stupidity with gangster Gov protection is recipe for collapse. I hope the Guillotines are dull and require multiple whacks and hacks.

Maestro Maestro's picture

A Viable Monetary System With Gold, Silver And Trust As Its Foundations

1) Gold and silver circulating as two independent forms of money without fixed, but (truly free) market-determined ratios to each other.  Plus;

2) Currency redeemable in gold and silver at non-fixed fluctuating rates, circulating alongside, and competing with, precious metal money.

3) A nonprofit national bank that issues gold- and silver-backed currency only, but NOT debt- or credit-generated money.

4) A private for-profit banking sector that can issue loans for productive enterprise or sensible purchases or even speculation purposes. NO reserve requirements and FRACTIONAL banking is permitted.  But; credit, scrip, funds or capital based on, or generated through, these loans are not legal tender nor payment in full for any good or service.  Any such loans must be repaid in gold-backed legal tender, or gold, or actual material items or valuable services or intellectual property, as specified in the contract between lender and borrower.  This ensures that the banker is only somebody trustworthy who is actually capable of providing a valuable service to the community by virtue of introducing business partners to each other and facilitating their business with liquidity or credit, in the form of loans that people have confidence in.  Essentially, the private banker's capital is his reputation and the trust that people place in him.

However, NO FDIC, i.e., NO arrangements or institutions that permit the socialization of losses and the privatization of profits. The National Bank does not guarantee private currency, scrip, funds, nor private loans.  You gamble, you may lose. The banker gambles, he can lose. The banker cheats, he faces justice.

This monetary system represents the best compromise between individual freedom and societal justice, and a viable foundation for our civilization.

http://goldasmoney-art.blogspot.com

Hail Spode's picture

While I am with you as regards to hard money, I don't want all the rules being made in one place, and you cannot have central banking and a decentralized Republic. You have to pick one or the other. So, NO national bank. This is from Localism, a philosophy of government and what it says about money and banking... http://www.amazon.com/dp/B00B0GACAQ

Also makes the point that money can't be left to government. They will cheat. It has been going on at least since the Roman Empire started reducing the purity of silver in their denarius. The US did it repeatedly when we were on a gold standard. How can government be an honest referree making sure that the issuer of money is staying honest when THEY are the issuer? We have to take government away from being a party to the implied contract of an issuer of money makes to the users of money. Government currency should be banned.

Leverage should be limited. Not banned, not unregulated, but limited. Too long to explain here, but its in the book. Agree with privatizing FDIC. http://www.amazon.com/dp/B00B0GACAQ

bluskyes's picture

No need to limit anything, as long as full disclosure is in effect.

Hail Spode's picture

For investment banks maybe. Deposit banks? I can't agree. If we don't limit the size AND leverage of individual deposit banks then they will get so big that their going down will sink the economy and then politicians, being human beings who would rather can-kick than take the hit on their watch, will bail them out with taxpayer money. 

In boom times the stupid one is the one who does not leverage to the moon. They are losing money if they don't leverage to the max. In bust times the stupid ones are those who over-leverage. When boom turns to bust the genesis who "own" everything are insolvent idiots. You think they are going to turn over the keys to their Maseratis and sell shoes at the local mall or are they going to use the paper wealth and ownership they have to push the politicians to change the rules and rescue them? Hint: what actually happened?

 

Maestro Maestro's picture

'Government' is not made up of lizards from Mars. They are people like you and I. If the government doesn't work, it only means that people are no good. And if people are no good, then forget the rest.

Government ought to be a mechanism that galvanizes and applies the vitality of its citizenry towards the tasks of organizing national defense and codefied societal justice.

The rest will take care of itself if people just abstain from inflicting unprovoked and unnecessary suffering on each other.

(I proffered above what I think is the best economic system that's ever been envisaged thus far in human history. Your refusal to use government decreed and/or regulated money fully has its place in it. No government under this system will impose on you the kind of money you must use amongst your peers. And it's not even one page long.)

Hail Spode's picture

I am glad you put it out there, this is a subject which should be discussed more. The bad guys have thought this through, how to turn money into power and control. The good guys should do the same. To me, that is what we are doing .

But people are not any good, especially when given a lot of power for a long period of time. If people were good, we wouldn't need external government. And if men were capable of governing and staying good, government would not need any checks and balances. It is like that old Madison "if men were angels" quote from Federalist #51. Decentralization is the ultimate check and balance. What you propose is a viable first step. I don't think that things will stay like that though. Do you realize that in the early 1900s many state banks had bank notes which competed with Federal reserve bank notes? Over time the feds taxes them and legislated them out of existence. Moving to what you propose is a mid-point. It is either going to devolve back into something much like we have now or move further away from centralization into something more like I am talking about.

The Dark Knight of Political Philosophies.... http://localismaphilosophyofgovernment.blogspot.com/2016/03/the-dark-kni...

Maestro Maestro's picture

That is exactly what we are doing, friend. Thanks for sharing your thoughts with us.

grizfish's picture

"With Gold, Silver And Trust As Its Foundations"

How can you realistically list TRUST with metals of value in a world where avarice reigns supreme?

Please show me where a non-profit bank has ever been in existence?  If you find one, please show how it remained a viable institution.

What the hell is that mish-mosh of incoherent wishful dreaming in your item 4?

Hogwash!

Maestro Maestro's picture

If trust cannot be part of the package then all we have left is the Wild West. Trust is a necessary ingredient of civilization, I think. Otherwise how could you even place a gold or silver coin in somebody's palm before receiving the item you were trading it for? If you don't trust your trading partner, how could you even feel comfortable letting him know you have gold on you?

Re #4. I loath fiat and paper currencies and I would never deal in them, if it were up to me. But, unlike you, there are lots of folk out there who think their freedom and liberty is being impinged upon if fiat paper currencies or tokens as some referred to them, were outlawed. #4 partially addresses and satisfies their itch to play Russian roulette with their money. Let the children play outside lest they break my wife's porcelain vase. Gotta give "youth" their breathing space.

LawsofPhysics's picture

good luck with #4.  THIS is the fundamental problem. LET BAD MANAGEMENT AND BAD OWNERSHIP FAIL!!!!!!!!!!!!!!!!!!!!!!!!!!!!!  NO "TOO BIG TO FAIL BULLSHIT!!!!!!!!!!!!!!

 

AND GOOD FUCKING LUCK WITH THAT IT WILL REQUIRE BLOOD.

Maestro Maestro's picture

Well, if they can't behave at all, then we're headed for another millennium of dark ages. Maybe not even that, as there are a lot of people out there with access to the button(s) who think they can survive a nuclear war and repopulate the world with their chosenite dicks via the agency and otherwise the ovaries of the young and beautiful bimbos they stashed away in obsolete nuke silos.

ReturnOfDaMac's picture

The farce is STRONG with this one!!  Truly delusional, or perhaps a rock peddler pushing his book...

Bay of Pigs's picture

Keith Weiner has never been someone to take seriously.

LawsofPhysics's picture

Coming gold standard?  LMFAO!!!! Coming, when?  After the master's of the universe trim the human population back down to one billion?

 

I want some of what this fucknut is smoking!!!

gdpetti's picture

what he's smoking is the usual state sponsored mental conditioning that limits what your mind allows in for consideration... he simply doesn't see the big picture. The PMs are the last game in town, which is why they are so heavily manipulated when things aren't going well, and when this starts, it increases into a parabolic curve, same as all of nature. He means well, most do-gooders do, but they fail to realize WTF is going on, thus focus on their small picture, which is but one small piece of the larger picture, the whole mosaic.... same in information theory... same in the entire cosmos.... keep pulling that thread of Ariadne and get the F out of that Maze, Matrix or Trap of the Mind... the one the oligarchy running the govt has put you in.

LawsofPhysics's picture

Correct. Big difference between all things paper and PHYSICAL.

Don't overthink this folks...

"Full Faith and Credit"

 

 

FYI- I do business all over the world and partake in several oligarchies. What the fuck makes you think you are so special?  been this way for thousand of years!!!!

jpot34's picture

Cryptos will also be a go to asset. I've got all 3 to cover my arse!

gmak's picture

You can't have a gold standard so long as paper gold can be created out of  thin air with nothing behind it.

East Indian's picture

1. Money should be created only by expending some (preferably defined) amount of energy. Anything that can be created in infinite or near infinite quantities without much effort cannot serve as money.

 

2. It should hold the value over time 

BigJim's picture

Anything that has a zero bid-ask spread can function as money.

People will keep accepting fiat until they don't, and that may be a long time yet.

OldPost's picture

Every failed experiment in Fiat...has wound up as a new Gold Standard...

Weirdly's picture

The bankers who create money have the power.  They will not give up power and no one will take power from them.  A gold standard is a pipe dream.

PGR88's picture

No one in the world wants a gold standard.  Certainly not the American Empire.  Even the Americans' strategic opponents like China and Russia need a centrally-planned, fiat, printed currency to keep their regimes afloat. The ECB, China Central Bank, hell even Obama's new Libya are all joining the centrall banking club.   We have just entered an era of globalist central-banker, manipulated, fiat currency - not leaving it.

There are absolutely ZERO trends supporting a gold standard anywhere in the world at this moment.

rlouis's picture

Venezuela looks like a good example.

JRev's picture

It's easy to re-price gold (and therefore, debt and the international balance sheet) when you own the lion's share of it. No skin off their backs. 

kev the bev's picture

I don`t think so. These shennanigans can only play out for a certain amount of time.

People will revert to hard assets as currency printing continues and they will exchange currency for anything that has intrinsic value.

Bankers have no control over what people exchange their currency for unless of course they make gold illegal. That will then push the gold price up even further.

Not long now.

BigJim's picture

People have been saying "not long now!" since 1973.

If the globalists get their way, PMs will languish forever.

Only "invest" in gold if you think they'll fail within a reasonably short timespan. Otherwise your capital will be better deployed elsewhere.

Aussiekiwi's picture

Unfortunately we will all be long dead before that day comes.

Printing to infinity and beyond!!!!

 

 

DownWithYogaPants's picture

What will the role of the banker be?  Psychopaths always find a way.  

Jim Willie on the gold trade note:

Jim Willies Explanation of Recent Events – Qatar and Saudi – Sheist Dollar – Gold Trade Note

JRev's picture

First it was the "100% gold backed yuan," now it's the "gold trade note." I remember when China would "never join the SDR basket," per the Golden Jackoff, too. Even Bill Holter and his ridiculous cowboy hat are now admitting they have no fucking clue what will take the dollar's place in global trade, except to say that gold will play a role of some sort. 

http://statelesshomesteading.com/dr-bricslove-or-how-alt-media-learned-t...

Oh, and Jim Willie is obviously on a lot of blow. *sniffle sniffle* every fucking interview. You'd need a lot of blow to think "The Voice" (in your head) is a super-secret contact and that Saudis are forcing the US Navy to pay for oil in silver coins. 

Bay of Pigs's picture

You're right. Nobody knows what is going to happen.

Willie went off the rails years ago, no pun intended. He used to write some pretty good stuff.

lasvegaspersona's picture

Jim Willie will be released from the assylum soon. For now I wouldn't quote the man. He seems delusional at best.