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View Full Version : [Video] Jim Rickards / Jim Grant on Fed Policy, U.S. Economy, Gold Standard [Bloomberg]




ctiger2
11-11-2011, 10:27 AM
http://www.bloomberg.com/video/79944740/

Mogambo Guru
11-11-2011, 11:48 AM
Awesome, thanks for posting.

Travlyr
11-11-2011, 12:09 PM
What an excellent interview. While I'm not sure that I agree with Jim Rickards on who ought to be in control, I plan to read his new book, "Currency Wars: The Making of the Next Global Crisis." Jim Grant - "Jim treats this (gold standard) so well in his book."

hazek
11-11-2011, 01:45 PM
My head wants to explode when I hear the question: "So what should the price of gold be?"

Do we have 1 person or a small group of people answering this question for anything else? Would she ask that about meat? How about bread? How about oil? Fking ignorance pisses me off!

ctiger2
11-11-2011, 02:20 PM
KingWorldNews tweet: Jim Rickards - The US Won't Give Germany its Gold http://t.co/j7bRcLe8

Steven Douglas
11-11-2011, 02:27 PM
My head wants to explode when I hear the question: "So what should the price of gold be?"

Do we have 1 person or a small group of people answering this question for anything else? Would she ask that about meat? How about bread? How about oil? Fking ignorance pisses me off!


Ah, feels good not to be the only one. Here is one possible answer:

"What should the price of gold be? Well, since gold is a price, how about we start with "one ounce"? Then you can relate that to whatever else your goofy little mind wants to equate it to."

I am constantly surprised at how many otherwise intelligent people don't seem to understand that monetary gold or silver, including the legal definition of a dollar, is just a unit of measurement relative to other units of measurement, no different than ounces or quarts. I wish they would outlaw the naming of currencies, which only opens the door to redefining basic units of measurement ("As of today a quart is equal to a pint!"), and just stick with a known metric. No strange name. Just a friggin' 10 gram silver coin - WITHOUT A NAME. Not "bullion". Money. Want to mix it with a base metal? Fine. It's a 10 gram silver coin with base metal added. Simple as that. What is the "price"? You tell me. How much bread are you offering in exchange for one of these bad boys?

Oh, and gold coins? Denominated the same way. Separate currency altogether, freely competing with silver, or platinum, or copper or whatever. All denominated by specific mass, no one value pegged to anything else.

ctiger2
11-11-2011, 02:45 PM
Oh, and gold coins? Denominated the same way. Separate currency altogether, freely competing with silver, or platinum, or copper or whatever. All denominated by specific mass, no one value pegged to anything else.

Bingo, all silver/gold coins should NOT have monetary values stamped on them. Only weights. 1oz = XX unit of currency etc.

jclay2
11-11-2011, 03:11 PM
Bingo, all silver/gold coins should NOT have monetary values stamped on them. Only weights. 1oz = XX unit of currency etc.

The real question should then be, how much utility can one ounce of gold be exchanged for whether that be services/food/oil/commodities/etc.

Steven Douglas
11-11-2011, 03:39 PM
The real question should then be, how much utility can one ounce of gold be exchanged for whether that be services/food/oil/commodities/etc.

That is determined by the market itself. There is no committee (nor should there ever be) that can establish the value of gold relative to other goods or services. It just happens that we use fiat dollars as a baseline medium for calculating relative values, but that really doesn't mean a thing. You could bypass that, and look at the "price" of gold per ounce, and divide that by the "price" of anything else per whatever unit.

So, for example, at today's "prices":

1 oz. gold = $1,788.9
1 loaf of Steven Douglas' Wonderful Bread = $3.19 per 1 lb. loaf

Therefore, 1 oz. gold = 560.78 loaves/lbs. of bread

You don't need fiat dollars or even gold as the medium. Bread can be priced directly in gold, silver, fiat dollars, bread, or anything else.

The thing to remember about gold is that it is just another medium of exchange having its own relative value, just like anything else. Under a gold-backed monetary system, it would be a common medium by which everything would be priced directly.

Now, even if Congress decided to stay with the term dollars, and revalued dollars in gold, it would only affect the divisibility, not the actual value of gold. It would have nothing to do with the current Fed fiat currency value. Everyone would adjust their own prices accordingly, knowing that 1 dollar = X amount of gold.

hazek
11-11-2011, 07:18 PM
I wish they would outlaw the naming of currencies, which only opens the door to redefining basic units of measurement ("As of today a quart is equal to a pint!"), and just stick with a known metric. No strange name. Just a friggin' 10 gram silver coin - WITHOUT A NAME. Not "bullion". Money. Want to mix it with a base metal? Fine. It's a 10 gram silver coin with base metal added. Simple as that. What is the "price"? You tell me. How much bread are you offering in exchange for one of these bad boys?

Oh how I couldn't agree more..

For example a dollar, was originally:

On the 15th of January, 1520, the Bohemian Count Hieronymus Schlick (Czech: Jeroným Šlik z Passounu) began minting coins known as Joachimsthaler, named for Joachimsthal (modern Jáchymov in the Czech Republic), where the silver was mined.[1] (In German, thal or tal refers to a valley or dale.) "Joachimsthaler" was later shortened in common usage to taler or thaler (same pronunciation) and this shortened word eventually found its way into other languages: Czech tolar, Danish and Norwegian (rigs)daler, Swedish (riks)daler, Dutch (rijks)daalder, Ethiopian ታላሪ ("talari"), Italian tallero, Flemish daelder, Persian Dare, as well as into English as dollar.[1]

Meaning a silver coin i.e. silver. Dollars weren't even a currency, they were SILVER FKING COINS.


The coins minted at Joachimsthal soon lent their name to other coins of similar size and weight from other places. One such example, the Dutch lion dollar, circulated throughout the Middle East and was imitated in several German and Italian cities. Carried by Dutch traders, this coin was also popular in the Dutch East Indies as well as in the Dutch New Netherland Colony (New York), and circulated throughout the Thirteen Colonies during the 17th and early 18th centuries. Some well-worn examples circulating in the Colonies were known as "dog dollars".[2] By the mid-18th century, the lion dollar had been replaced by Spanish dollar, the famous "piece of eight," which were distributed widely in the Spanish colonies in the New World and in the Philippines.[3] Pieces of eight (so-called because they were worth eight "reals") became known as "Spanish dollars" in the English-speaking world because of their similarity in size, weight and composition to the earlier thaler coins.

The bold part is why the name dollar, SIZE, WEIGHT and COMPOSITION i.e. a certain amount of silver shaped in a certain way.

Where ever in the U.S. Constitution you read the word Dollar, that's what that word means. Not currency, not paper, it means silver coins of certain weight and composition. Last I checked that's still a matter of fact today.