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Before 1974, U.S. dollars were backed by gold. This meant that the federal government could not print more money than it could redeem for gold. Learn more: http://bit.ly/1HVAtKP. While this constrained the federal government, it also provided citizens with a relatively stable purchasing power for goods and services. Today’s paper currency has no intrinsic value. It is not based on the value of gold or anything else. Under a gold standard, inflation was really limited. With floating value, or fiat, currency, however, some countries have seen inflation reach extremely high levels—sometimes enough to lead to economic collapse. Gold standards have historically provided more stable currencies with lower inflation than fiat currency. Should the United States return to a gold standard?

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What is the Gold Standard? – Learn Liberty #buy #homes in the #USA #realestate

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  • I would take it a step further to say that we don't need the federal government at all. We also do not need federal income tax to fund the federal government. The feds would only lose 1.48 trillion without income taxes. This would require Washington to get smaller and be more fiscally responsible with their budget. Letting tax payers keep their money is better for the economy. Since most of the revenue is wasted in the government before the benefits even reaches citizens.

    Furthermore the average federal employee salary is $84,153 dollars per year. That is 50% more income than people who work in the private sector. Since federal employee salary's are funded by tax payer dollars should they be allowed to make more money than private sector workers? this hardly seems fair and balanced since they also receive far better benefits and compensations. The only way to fix our national debt is by decreasing the size of government and by cutting government spending. Normal people have to treat their credit card debt the same way. You can't pay off your personal debt by spending more money… so how come the feds are allowed to get away with it. If the federal government was treated like a regular business they would have gone bankrupt decades ago. In the private sector businesses have to be fiscally responsible and make as much profits as possible or they risk going under and people will lose their jobs and wages. But the federal government is not held up to the same standards.

  • I recently read an interesting proposal to use electricity-backed currency. Instead of redeeming your cash in gold you would redeem it in electricity to power your house. Gold has the problem that it has no intrinsic value, electricity does. There is also a strong correlation between electricity consumption and GDP, which indicates that the electric output follows the general economic output of the nation. If you think about it, bitcoin is kind of an electricity-backed currency, because to mine a bitcoin you have to plow through numerous GPU's and thousands kWh, the difference is that bitcoin is very wasteful in the same way mining gold is. A truly electricity-backed currency would solve all these issues.

  • Good Video but could be better on Pros and Cons.

    1. You can't really say Gold Standard is better at controlling inflation. During the gold standard era, there was hardly any major economic crisis. It was a very peaceful time, almost tranquil. There were few civil wars, and not so surprisingly during those times, countries actually abandoned gold standard as it was no good. After the gold currency was abandoned, we went through major geopolitical economic crazy crisis like WWI, Great Depression, WWII, Cold War, Riemann Crisis, and etc. And Holla we survived! So… can you really say that Gold Currency is better at keeping inflation low? I don't think so.

    2. Gold Standard was abandoned for a specific reason: it gave our government(Fed) power to increase money supply and rescue dying economy during economic downfalls called recessions. When people lose faith in economy, spend less, business don't do work, and unemployment increases, government intervention through monetary and fiscal policy can stimulate the economy in a positive way. Government intervention could significantly reduce the time it takes for the country's economy to recover (which could take very very long if economy was to recover on its own). If you don't believe me, have some research on why people suffered so much from Great Depression in 1930's. Basically, people believed in the power of market, government did not intervene, and as a consequence of their naivety, people were left with economic disaster that took forever to recover.

    3. Fiat Money will not become shit money, and it is not a complete illusion as Solo Rider puts it. U.S government is not Zimbabwe government. Of course when someone make shit loads of money from Forex trading, and that could look like "oh that guy is making money out of nothing." But not at all. Everything moves according to supply and demand, whether it is through government intervention or through private investment. It is betting on educated guess, and whoever is smarter in making those guesses makes money. People used to say earth is at the center of the universe. You say shit when you don't know shit.

  • Wouldn't a big rise in gdp cause big deflation?

  • Fiat currency is bullshit. Actually, it's theft. But I'd like a discussion of whether or not a gold standard would limit investment in new enterprises, because I don't know much about that.

  • No, the real question is which system provides more stable currency value AND more stable economic growth. You left out the main reason the US switched to a fiat system, which was the belief that the gold standard was limiting economic growth.

  • Does anyone know of a video explaining this same thing to kids? Ideally something with more cartoons like PragerU's videos? I want to show it to my young son, but talking adults don't hold his attention for long

  • What does it take to get back on the gold standard?
    Who stands to prophet by preventing the US from getting back on the gold standard?

  • 2:28
    THE FAT CATS KNEW THE GOLD HAD A NEW PURPOSE IN THE ELECTRONICS INDUSTRY!
    AND ROBBED THE PEOPLES!
    (-_+)
    golden rule
    GOD is GOOD

  • Why are these videos full alien loving illuminati believing, the elites are lizards conspiracy theorists?

  • the gold standard "shelton benjamin"

  • 100% of economists think this is a bad idea.

  • And our money has been less and less valuable since

  • OMFG! This video is as disingenuous as could be. It doesn't state how much gold/silver America has. This video is intended to misinform and reinforce someone's uninformed biases. For sure there is a valid argument to fairly criticize the Fed, but this fall short of being sound or valid.

    How much gold would America need to maintain an efficient economic system?

    How much does the US currently have?

    Where would we get more to grow the economy?

    What is or would be the rate of growth in a reimagined gold standard?

    How does a gold standard work if only one country uses it?

    Who establishes the value of gold if one country suddenly began using it and no other country did?

    What would a gold standard in these modern times do to an innovative and tech hungry society like the US if more gold can't be acquired quickly enough to meet the demand.

    How would a gold standard work in a global economy where a single product, say an iPhone, has its pieces manufactured in several different sovereign nations?

    If gold is finite, would nation states be forced to go to war to pillage more gold?

  • People here saying that "governments abandoned the gold standard for a reason." Well yeah guys they wanted the ability to spend money they didn't fucking have. Now they sell you poverty in the form of paper. They promise you wealth and hand you debt. A debt they never plan to repay. Much better system; truly.

  • I like this video but it deliberately blames and demonize Nixon as going off the gold stand because he was an evil man. The reason why he went off of it is because American was losing gold and had it continued the dollar would have become effectively useless. Leading the country to bankruptcy and the end of the dollar as the worlds reveres currency. Which ultimately would have been the end of American.

    Obviously the lost of gold was because of America's overspending militarily and socially in an effort to fight the soviets and fund the great society. Another reason was America businesses were losing to emerging world economics like Asia and Europe. Combined this with the OPEC oil embargo and history shows the country was circling the drain.

    Also the video doesn't really address the reason why FDR went off the gold standard the way it explains why Nixon went off and it probably were for many of the same reasons I listed above. Today many economists argue about the causes of the Great Depression and the gold standard but if it was so great why did the country vote to leave it democracies aren't run alone.

  • This is why we have invented cashgold – Notes with 0.1g -5g of 999.9 gold actually in them! In the 60's 5% of the population owned gold… now it is less than 0.01%… We are going to reverse this in the coming months and years. 🙂

  • This is purposely misleading. There are 10.5 Trillion dollars in circulation The US Treasury has 147 million ozs of gold. That's $71,000 an ounce . A $100 coin would weigh .0014 ounces. How much would grandma's earrings be worth?
    He also fails to mention central governments can simply devalue there currency by changing its value in relation to gold.
    Of course, a gold standard also stifles economies.

  • This guy is totally inaccurate. There never was a gold "standard". The US dollar was always and still is a one oz silver coin. The Bretton Woods agreement after WW2 was a contract between US and other countries that the US would redeem the Federal Reserve Note. As the speaker correctly points out, it was illegal for US citizens to own gold so how could it be "the standard"? The dollar STILL was a one oz silver coin. They still mint them.

  • GREAT GREAT GREAT PRESENTATION. I COMMEND YOU SIRS!~

  • "Don't you see how irrational it is to have a currency backed by nothing? Yes, we obviously need to base our value on a shiny rock that can become worthless in a microsecond because it's only uses are genetic embedding, or making special semiconductors.."

  • since US off the gold standard,
    US economy more strong, even the world prefer to buy usd and use usd, rather than gold.
    which is literally just a rotten paper and junk, but could beat gold. amazing

  • A gold standard is not freedom, it is a government imposed rule. This always leads to other problems and dropping the gold standard. This should not be interpreted as being against gold, but the market should decide what it wants to use as money.

  • Nonsense 'facts', world inflation rates were not more stable under the gold standard or silver standard, any level of fact check will show otherwise; http://www.economicshelp.org/wp-content/uploads/blog-uploads/2011/02/inflation-1800-2011.png , any problem of inflation now is due to governments running budget deficets. You don't need gold to back or express the value of economies, we have buildings, roads, machines, houses which have genuine utility value, gold serves no use or utility in fact you have to pay to extract it then pay to guard it forever – it has negative utility value.

  • That's how the elite control this society. All this money is completely worthless. It's backed by nothing. Complete illusion.

  • without question gold is more stable and less prone to negative inflation than what we have now (I say negative because inflation itself is not necessarily a bad thing when it is equal to demand for goods and services, which explains why some like a fractional reserve system although….)

    The problem with gold standard is the same problem with our current monetary system – it relies on government intervention and regulation. I'm pretty sure one of the main kickoffs for leaving the gold standard in the US was upon the arrival of new gold from Europe the currency did not inflate even though this new gold represented new productivity – what ensues is there's not enough money to circulate this productivity and both Europe and US fall back before the productivity line of the new gold…..All a failure of central bodies and authorities – trusted to run it all

    Right now you can redeem your money for gold – it's called buying gold. The problem is taxation, being taxed on anything is perverse and taxing on gold is criminal. But the smart will purchase gold with their money to hold value and liquidate it when necessary.

    A gold standard is moving away from liberty not towards it. We do not require some national currency or centralised body – multiple competing currencies, especially crypto currencies gives all the benefits of fiat and gold while (in the case of bitcoin) throwing off the negatives. Let there still be a dollar just let that dollar compete with everything else – and keep the governments dirty little fingers off of my gold – don't forget that all a gold standard really is is the government price fixing gold, how does price fixing ever work out – also currency itself is a commodity should we judge the price of milk by the price of eggs and does it really provide any stability? I guess for those that partake in both milk and eggs on a regular basis.

  • Btw do you know where I can find graphs supporting the gold standard stability, I need it for a school project.

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