Topic: Can One Sentence End the Financial Crisis? (Read 320 times)

It’s very unlikely that the golden standard will come back. The size and complexity of the U.S. economy would also make the conversion extremely difficult. Just to back the dollars now in circulation and on deposit—about $2.7 trillion—with the approximately 261 million ounces of gold held by the U.S. government, gold prices would have to rise as high as $10,000 an ounce, up from about $1,780, causing huge inflation. “It could do massive damage to the economy,” said John Makin, an economist at the American Enterprise Institute. So why the clamor for its return? Nostalgia, said economist Charles Wyplosz. “People long for a simpler age,” when the U.S. “was the dominant economy and there were no financial markets to speak of.” It’s like “getting back together with that old girlfriend,” said MarketWatch’s David Weidner. The current system may not be perfect, he says, but what people forget is that “the gold standard.

The gold-based money system does not directly solve the economic crisis but the gold-based monetary system eliminates massive bubbles and eases inflation. Then the fundamentals of the global economy become more solid. The financial and monetary sectors are closely attached to the real sector they symbolize so that the economy becomes stable

At this time what is more realistic is perhaps the portfolio-based architecture of a number of strong and stable gold-based currencies, such as USD, Euro, Yuan, and Yen, all of which must be gold-based. Because this will encourage other currencies to follow the gold-based in the long run.


The USD has become the world's foreign exchange, so that the US has complete freedom to conduct quantitative easing, which is essentially a robbery of the economic value of all USD holders, both people and countries, through the printing of banknotes. By using money that has an intrinsic or gold-based value, we can stop the robberies committed by the capitalists so that justice can be realized.

The function of the bank must change from margin oriented to service-oriented. Without us realizing, the creation of banking services with the interest system has created speculative actions. Previously money was only a transaction tool, not something as valuable as it is now happening.

Reverting back to the gold standard will never solve US' economic woes. It has to be more than that really, plus the fact that once they really proceed with such plan, gold bugs with tons of gold in their bunkers would become seemingly powerful.

Add this to the list of Trump stating preposterous things in order to 'make America great again' but continues to drag the US down with his administration and careless remarks on literally about anything. If you give the power to a man-child spending lots of time on Twitter rather than doing whatever job a president has to do, you will have these ill results the US is experiencing right now. Now you have this statement, without even thinking of the possible outcomes of such a move. Classic Trump for publicity since the election is also nearing once more.

Now going back to the gold standard, what I think would strengthen the US dollar is to not make it backed by gold but rather improve economic policies and trade relations, not with scaring off other countries by being the big man with the big guns!


That's how I actually see it as well. Him saying things about reverting back to US' roots is just to please people that he needs in order to help him vie for a re-election. No such thing as 'reverting to gold standard' will ever happen again, as most countries still find confidence in the US dollar amid the crises that are happening around--plus the fact that they have loads of the said currency in their stash, too.

What I'm afraid of is these steps which they are taking with the view of saving economy should not backfire and I think he says all these things in the view of the upcoming presidential elections. He is taking all the steps with the elections in mind another best example is forcing the researchers to find the antidote for the virus before the elections how bad thinking about elections in this hard times

Well, perhaps you are right but going back to the gold standard is possible but it may not be accepted or it will take time for other countries to go back to the gold standard. Currencies vary from each country and it will become another concern about how these countries would convert their currency into the gold standard base in USD. Instead of going back to a gold standard, --it will be better to have bitcoin as a global currency because it is decentralized and no capitalist would solely own it. Indeed, if we will go back to the gold standard there will be a lot of adjustments to do like doing transactions online.

It seems to me that this article is some clickbait fake news,or Trump is talking nonsense again.
USA can never return to the gold standard with their gigantic budget deficit and trading deficit.
They desperately need to print more money in order to keep their economy "above the water".
If they return the gold standard,the Federal reserve system will have to send all US gold reserves overseas in order to pay for the US debts.This simply ain't gonna happen.
The gold standard isn't a panacea to any financial crisis.This global crisis has nothing to do with finances and the global business cycle.

One sentence can never end the financial crisis it'll depend upon the country's economy weather the financial crisis are going to be seen If there's a drag within the whole world then nobody are going to be ready to trade with anyone then the crisis will take an extended time to beat. China the us the us many developed countries if one country features a problem, the opposite country helps it's reduced When the entire world crisis occurs together an economic recession occurs things is getting worse day by day.

We will never hear this sentence again, unfortunately

Financial Crisis will never end.
It is a vicious cycle that never ends. If it ends for a country then for another country is going to start. Having said that, financial crisis will always exists in countries around the world.

The transition to the gold standard could greatly help in providing currencies with liquidity, but then many central banks will have to moderate their ambitions very much, because gold mining is not a very quick business, and you cannot get huge quantities there in a couple of days.

   Nobody can tell what will happen, not just you and me! Oil price showed that there's no safe investment,
I wonder what investors in oil are doing now?!
   I don't think that returning to gold standard can help at this point! US is one of the strongest countries,
and they are capable for great things, but at this point we can't claim that they will do anything for sure.
As I read news Trump is saying one thing, but he still need approval from congress, will he get it?

The issues are climbing and nobody is doing anything about it. I see a time where it will get to and famine and hunger will take over because of recession. Many countries will go into recession and this will further make situation worse as gross domestic product will reduce too.

The financial crisis is already getting messier with the crashing of US oil to about $0.01. A stronger will is needed and this will take some time. I can't tell what is going to happen next.

This is Trump we are talking about and he would say anything to that would "make america great again" somehow yet he doesn't know how hard it is to go back to gold standard nowadays, it is way too over leveraged to go back to that now and we are talking about not even close numbers so in reality he talks the talk but he won't be able to walk the walk as he has done it a lot of times.

When April 2022 comes and he does nothing about it, dude will literally just say "I never said it" and with even proof with the video dude will be loved by many republicans just because they love an idiot like themselves and will be supported by many republicans who may not like him but prefer him over the "demlib" for some reason, even if it means country going worse, they rather go worse with a republican than get better with a democrat.

Right, they will print $10 trillion one day, and then return to the gold standard the next.

Trump has talked up the gold standard in the past to please conservatives but the notion is ridiculous at this point in time. It would only be done after a full US government default and currency reboot and even then, an outright gold standard is unlikely. I think a hybrid system of central bank reserve backing and free floating exchange is more likely. I don't think we'll see the Keynesians killed off that quickly.

No! That would again create dependency on a single asset which may be proved disastrous at a later stage. There is a good reason why US government abolished the gold standard. I believe the answer lies in the below article,

https://www.mentalfloss.com/article/12715/why-did-us-abandon-gold-standard

Even though it's an old article but it's good read with little dose of economical thesis. Every layman can understand why it has failed and why it's very unlikely to come back.  

Im not sure that we will see gold standart anywhere ever again

Yeah well, not going to happen. It's not like the US treasury has a lot of gold now. There's a lot of paper dollar money, but that's it 

The recurring global economic crisis is a logical consequence of the implementation of the global capitalist economic system throughout the world. The economic system of Capitalism is built on the basis of freedom, both freedom of ownership of property, freedom of management of property and freedom of consumption. This principle of freedom, is not feasible, because it violates all moral and spiritual values. Capitalism is now experiencing major symptoms of systemic failure, namely the sluggish economic growth, the widening of the gap and the growing number of poor people and the more frequent financial crises both locally and globally. In addition to the damage to the economic system Capitalism can also be seen from various patterns and systems to support freedom of ownership of property and its management, namely:

- Banking system with interest rates
- The development of non-real sectors in the economy that gave birth to capital market institutions
- Foreign debt is the foundation of development financing
- The use of a monetary system that is applied throughout the world that is not based on gold and silver
- Privatization of management of natural resources which are public property and needs.

The returns to the gold standard cannot end the economic recession because we know that large countries often carry out propaganda and manipulation. The right thing is to return to the physical currency system of gold and silver. With excellence

- The physical currency of gold and silver is a fair exchange for all parties, measured and stable. In the course of history, the application of gold and silver coins has proven to be a currency whose value is stable because it is supported by its intrinsic value.
- Every gold currency used in the world is determined by the gold standard. This will facilitate the flow of goods, money, and people so that the problem of scarcity of strong currencies (hard currency) and its dominance disappear. During this time the dollar is often used as a tool by the United States to play for the economy and monetary of a country. Even America, as a printer, can easily make other countries poor.

How can a financial crisis be avoided besides using money that has intrinsic value such as gold and silver:

Changing banks from margin-oriented institutions to service-oriented institutions so that banks do not dredge the assets of the people of all classes but only benefit the capitalists. The loss of the bank with the interest rate system will reduce speculation.

Money is only used as a medium of exchange in the economy. Therefore, when the non-real sector must be closed or stopped so that all money will move in the real sector so that the economy will spin optimally.

The capitalist economic system, with the concept of freedom of ownership, has resulted in a monopoly on goods and services that are supposed to belong together, resulting in an extraordinary gap. All goods needed by the community are many and each of them needs each other, categorized as public property. that is, public facilities, unlimited mining goods, natural resources whose formation prevents individual ownership must be managed by the state and not privatized.

Do you seriously believe that would happen though?

It is no less than the next best thing that could happen to the USD. That would bring back USD back to the good old days. It will certainly preserve it as the most valuable currency in the whole world.

Right now, it seems as if money does not represent anything of value at all. And every central bank can easily have it printed anytime they want and in any amount they wish.

Can 9 words end the financial crisis?

https://www.zerohedge.com/news/2020-04-20/can-one-sentence-end-financial-crisis