SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Pastimes : Book Nook
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Ilaine who wrote (63)3/25/2001 8:16:53 PM
From: Don Lloyd  Read Replies (1) of 443
 
CB -

Let's round off world gold reserves to 1 billion and let's round off the price to $260. Let's assume that there is only one currency in the world so we don't have to worry about foreign exchange. If we decreed that tomorrow every dollar must be backed 100% by gold then tomorrow there would only be $260 billion dollars in the world. If we decided that fractional reserves were ok then there could be as much as $2,600 billion dollars in the world. That's not enough dollars.
If gold has intrinsic value, its intrinsic value is $260 an ounce. That's what it sells for in the free market. Inflating the value of gold to match the world's market cap would be a scam.

There are at least 3 things in this post that I want to respond to, and another two of your posts as well, but I will restrict myself to the one thing that keeps us at cross purposes all by itself.

...Let's assume that there is only one currency in the world so we don't have to worry about foreign exchange....

No, let's assume that there are no currencies in the world at all. All that exists is actual gold, to start. Dollars do not exist.

For the moment, don't worry about the history of how this might have come about, or how we get there from here. Money IS gold. OK?

Regards, Don
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News