US to Gold Standard

More importantly think about how this could be used to drop our debt... set the gold standard a one ounce = $100,000.00... the dollar wouldn't buy as much but we could get rid of several trillion dollars in debt in a hurry....

 

Kinda hard to fight endless wars on the gold standard.

 

Here's a short article arguing:
The federal government should default on its debt
The federal government should default on its debt
Guy says the feds should:
The Treasury would peg the dollar to gold, oil Opens a New Window. , natural gas or silver -- or perhaps a basket of those commodities. By choosing a weak valuation, for instance, $10,000 per ounce of gold, compared to the current market price of roughly $1,290 per ounce, much of the debt could be paid down thanks to a much weaker dollar.

 

This MIGHT HURT !!
Start at 26M
sloth

 

start at 13 min
eyes

 

Paper money vs gold.

Paper money in Venezuela

now seen as worthless.....

 

Must not get cold there. Weimar Germany, they used paper cash for fuel at the end.....cheaper than coal.

 

10000 reichmarks for a loaf of bread. Yep, it happened. This looks worse.

 

This stack of 14,600,000 bolivars, or about $2.22 U.S., would buy this chicken at a mini-market in Catia, a low-income neighborhood of Caracas on Aug. 16.

 

The cost of the paper and printing the fiat costs more than 2.50 usd ..
Wow , were almost there.
S

 

The history of ALL paper fiat is the same.....they don't last. Imagine the number of folks today slaving away to fund their 401k/etc thinking it will be something 30-40 years down the road. Staring at an impossible amount of national debt to repay, the only solution is inflation.....and on a much higher scale than the current 2-5%.

Let's say inflation JUST doubles to 10% year average in that period...it means the value of your savings gets cut in half every 7 years. You're mid 30's, plan to retire in 30 years with million bucks....except the value is cut in half 4 times........how long will $62,500 in today's purchasing power last you over the course of your retirement years ?

 

A year later this bill is still on teh books sitting in sub committee. Our gubermint at work

 

This bill was introduced in 2018 and still languished in subcommittee

 

There is a bit of info on here i cant confirm about the conversion of SDR from the SWIFT system but the rest of this is fairly close to accurate.

 

Nov 8, 2016 - On 8 November 2016, the Government of India announced the demonetisation of all ₹500 and ₹1,000 banknotes of the Mahatma Gandhi Series. It also announced the issuance of new ₹500 and ₹2,000 banknotes in exchange for the demonetised banknotes.

This was to stop 'corruption' fueled by payment of cash bribes (insert massive laughter here)

How did that work out?
Not so well - India’s central bank just proved demonetisation was for nothing

Could this happen i the USofA?
I'm going out on a limb ( a little bit) and say it is inevitable. Once real inflation kicks in, the FedGov will have no choice.

I remember my dad had a saying about the Great Depression - a grown man could not carry $5 worth of grocerys.
I was a teenager before I really understood what he meant.

I don't know what the new dollar will look like (I'm holding out for the 'chocolate' dollar) and I have no idea if this 'new' dollar will be exchanged at 100 to 1, 1000 to one or 10,1000 to one. I can guarantee anything you have in the bank will be converted for you. You know, as a courtesy .

And my wife wonders why we are now getting unsolicited offers to buy our house about 2x a month now... Anyone with real $$$ is looking to tie it up in hard goods/real estate.

Yup, this is going to be a very interesting winter. As in Chinese curse interesting...

 

Hahaha nope not today.

 

5 facts about the national debt
This piece is from July - 2019, well before the multi-trillion $ dump for "COVID relief"

Money quotes
The federal government’s total debt stands at $22.023 trillion as of the end of June,

The nation’s debt is now bigger than its gross domestic product,

26.5% of the debt (about $5.83 trillion) is owed to another arm of the federal government itself as of the end of June. Who is this debt owed to? Social (in)Security - they have been looting the Treasury your entire lifetime.

Net interest payments on the debt are "estimated" to total $393.5 billion this fiscal year, or 8.7% of all federal outlays.

interest rates on federal debt have begun rising again.

Fun fact
Though many may believe that “China owns our debt,” mainland China only held about 5% of the total debt as of May, or about $1.11 trillion. Hong Kong, a “special administrative region” of China, held another $204 billion. China was the top foreign holder of Treasury securities, ahead of Japan, which held roughly $1.1 trillion.