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Return to gold/silver standard
07-21-2012, 02:13 AM
Post: #1
Return to gold/silver standard
How would you explain how a new monetary system using gold and/or silver might be introduced? When nations have a monetary collapse the government usually devalues the currency and eventually prints/ uses a new fiat currency.
It seems easier for a country to get off a gold and silver standard rather than to go on it. How would a western nation return to gold and silver when governments have virtually no stockpiles, especially silver? Even if the U.S. was to nationalize all the mines that produced silver it would still only give each person about 1/10 of an ounce of silver based on yearly mine production. Silver Supply. Would we then have fractional reserve silver?

Could not government/ bankers simply say, we will not accept gold and silver as money (through law or force) leaving them to continue the control the money supply? This after all is what happens when a governement decides to go with fiat money.

Also, seeing how central banks are holding more and more gold, could not silver be continued to be sidelined and left as an industrial albeit expensive metal?
Thanks and keep up the good work!

Am I therefore become your enemy, because I tell you the truth?
Gal 4:16
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