Purplestickeypunch
Active Member
We never should have been taken off the gold standard. People seem to completely flake out on this topic. I don't know why it is so hard to get that the dollar in your wallet is in fact worthless. There is nothing backing it. Nothing more than a bouncing check.
The paper dollar once was in essence a check written by the government that was redeemable for X amount of silver or gold.
You carried these to purchase things from various vendors. Well, you don't want to carry all this cash so you have a check book instead.
You write the amount of dollars you want the check to be worth and give it in place of dollars to the vendor.
The vendor then returns the check to the bank in exchange for X number of dollars.
The vendor can then turn in these dollars for either gold or silver. (gold and silver will always be recognized as having value no matter where you go in the world)
Remove the gold standard:
Now the dollar is backed by nothing more than a promise to pay you back in more dollars that aren't backed by anything. Are you starting to see the problem with not being on the gold standard? Each time the FED prints more money the "Value" of the dollar goes down. Countries around the globe are getting tired of using our dollar and it won't be long until they block it from being used in the market all together. This means that OIL which is currently valued in the US dollar (for every country that buys oil) will now be based on the Yuan or some other gold backed currency. Once this happens; no one will want our monopoly money. No one....
Think about it. If you and I brought a printer, paper, toner, generator, etc. to an island not owned by anyone. Then started printing our own money not backed by anything; who would take the currency serious? Would you expect the US to allow us to convert our money over to theirs? Or any other country for that matter? I don't....
