Just read this thread. A few thoughts.
Firstly GATA's Powell has been going on and on about gold's manipulation. Defending his views and debating several opposers. To me it's a stupid debate. Whenver large amounts of money are involved there is ALWAYS corruption in several forms including manipulation, where possible. If we want to play the game we just have to deal with this. Complaining doesn't help. Ask GATA or Butler.
Slange, "
A fully gold backed currency is deflationary" Depends on the price of gold. But I agree, a FULLY backed currency won't happen..
Marri, your inflationary points. (Gold from $2,400 in 1980 to $364 by 2001). What currency? Gold hit US$800 in 1980 and dropped to $256 in 2000. Stayed in the $200s most of 2001. The A$ was ROUGHLY on par with the US$ in 1980 but dropped to below US50c by 2000. So in A$ we're talking $800+ in 1980 and $500+ in 2001. Okay that still shows it falling against an inflationary environment. But that's because you picked extremes. If you go back to 1971 when this all started US$Gold was $42/oz. it simply rose too fast thru to 1980. Now adjust $42 in 1971 to $1300 now and compare with real inflation. You can check it. I'm not bothered because such measures have been manipulated too much to make it meaningful IMO.
But let's test some real figures. Most western countries were using some silver in silver coins thru to the 60s. Australian coins, for example, had 92.5% silver till 1945 and then 50% silver till decimal currency. Silver gold ratio was about 40:1 For simplicity, because we used silver coins every day, I'll use silver. You can adjust to gold, if you wish.
A gallon of petrol was 2/6p (25c) in the mid 60s. The 50% silver coins. The 2/- weight was 11.3g and the 5d weighed nearly 3g. total 14g nearly half an oz. Therefore contained 1/4 oz. of silver. Current silver price is A$22. Thus $5.50/ gallon or about $1.25 per litre. Not quite there but with variance and extra gov't taxes, more or less filled the bill. A bottle of beer was about the same.
Of course these examples are too few, but serves as a sample. Reason was it's impossible to do it all practically is now shown. In 1966 a new Holden cost about $2000. In the same year land was being developed in Riverton (suburb of Perth about 10ks out). A quarter acre also cost about $2000 at that time. You can put your own values now.
One other point. Way out there. I really don't know anything about cryptos. To me they're foolish. But concede they may become the currency of the future. (Hope not, hate tech). But an idea put out there for those who know more about these things than I do.
We know China and others, are accumulating large quantities of gold. Stick with China here. Reasons. Take on US hegemony? Make theirs new reserve or Joint reserve? Slowly weaken or completely destroy Anglos? Remember Opium Wars, China's PMs lent/taken/stolen/given to the US for protection during Japanese invasion. Others?
Well the US knows China is accumulating. Are they worried? Yes, or should be. Can they stop this? Probably not. Too late. What can they do about it? Well one thing I've been thinking. Supposedly they let China buy all this gold etc. In return China can then sell down their USTreasuries, feeling safe with their gold and buy more, In the meantime US accumulate Cryptos, and then somehow still have enough influence to persuade (big stick) the world that universal cryptos will be the next reserve and gold is useless. Just a ponder.
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