Since there is a finite amount of gold in the world, money would have a fixed and understandable value under the gold standard. The fiat money that this country has created is nothing more than just paper created by a shadow Federal Reserve owned and operated by a government that uses political favors to exist. We had many fewer problems when our money had real value associated with it.
Gold is raising in price every day due to the fact that it is solid and can be used as real money. We are nothing more than slaves to other countries without this happening, and our debt will continue to grow, with bonds decreasing in value day in and day out. The gold standard is the simple idea that every unit of currency is backed by a corresponding amount of gold. When this actually happens, over time money increases only in proportion with the amount of gold that is mined.
Since gold is rare, expensive to uncover, and durable, this keeps the supply of money relatively constant. It also means that over time prices will tend to naturally fall, rather than the inflation to which we are accustomed. New technology makes the gold standard feasible in new and complex ways which can expand upon the traditional model and make it even more efficient.
The Gold standard stops the US mint from printing more money than it can back up.
Will gold return with its shimmer?
So if there's a high demand for money and the money supply can't keep up. There's less growth and higher inflation as the cost of money has gone up. This is inflation, this is why we went off of it. Think about it. We have to be able to back up the dollar bill with Gold. Something whose price is set outside of monetary policy. If the price of Gold increases, the dollar appreciates. We can say goodbye to our growth in exports.
In Economics class, it's usually good if the American economy has a relatively depreciated price than it's trading partner. Why don't people think things through Returning to the Gold Standard is a bad idea. It is actually a good thing that the government can print money in depressed economic times because that means it has something it can do to stimulate the economy. There are retractionary things it can do in boom times to help revitalize the value of the dollar.
The problem with the economy is not the gold standard. Did you know they did debase the currency in history, when gold and silver were money. They ended up using only silver then they reduced the amount of silver in the coins. They did it in Roman times , they debase the coins in England. It is not the case anymore.
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People in charge in your country decide to do what they like even if it is bad for the economy. The real cause of the economic mess we are in is because there is a minority who live by their own rules which are different from the rules put apon everybody else. Your jobs have been sent to Asia.
Your wages have not folloed inflation. They replaced full time jobs by part time temporaty jobs. Your country is becoming a third world country before your own eyes. They did not get the women out of the kitchen into the work place, to emansipate them. They did it to have more workers and to reduce wages and tax more people.
The economic changes that happened over decades and the changes they are imposing on you are to shape our society in a way you cannot beegin to immagine. The gold standard is a distraction. It cannot fix anything. It is a matter of moral values. If a few opress the many, denying the workers sufficient living wages the society cannot work.
Money is a representation of your swet. You must preserve the value of the currency.
If you devalue the currency you are rubbing the people. The devaluation of currency is like telling you that your work is worth nothing. You could buy a nice car for 10 thousand dollar years ago, now the sane car cost 20 thousand dollars. What happened? It means that if you did put 10 thousand dollars aside to buy that car you can no longer aford it because someone has devalued your money by making the decision that you have to pay more and more to buy the same things.
In these conditions why would you save money that will be devalued so much. Today people who are luckey anough to have an ordinary pension plan do not make anough to retire. In many cases the employes paied their dues, but the employers did not contribute what they were suposed to. Some fouonds were totaly scraped. No, it is not a question of precious metal as backup of the currency. This explanation is simplistic and inacurate.
The big picture is called greed, and dishonesty, economic immorality. I hope this brings a bit of light to the situation. One cannot simply change the value of an industry.
Gold has given subdued return of per cent over past one year
This would take away from an industry that is established. If you take away that, there will be angry producers and massive layoffs. If you compare potatoes to gold you would note that Americans use a lot of potatoes. From these potatoes, 16 trillion of them are owed to someone else and the farmers have to keep track of them.
Changing the value of a potato won't keep any farmer happy. We use a fiat currency because we NEED to be able to control the units of currency per population in a given region. An excess of liquid currency gives rise to inflation, a shortage deflation. We already know that population rises exponentially. We also know that wealth accumulates. Both of these factors will inevitably lead to shortages in the currency supply that cannot be remedied unless you have the ability to print more money.
This is why the gold standard was abolished in most of the world. Its not a conspiracy. The Gold Standard used to work, but it became unpopular for a reason. We live in a world that is constantly changing, and we should not keep judging by old standards. New situations call for new interpretations and standards. What was considered a Gold Standard years ago might not be such a good thing today, in a different situation. If we return to a Gold Standard during a recession, the public will hoard gold in an effort to provide personal economic security. Hoarding gold will only falsely increase the value of gold.
Returning to the Gold Standard is not a sound economic plan, due to lingering of the current recession. The Gold Standard made sense when we were operating by use of gold as a currency. Paper money was just a convenience that was represented by gold. Now that notion is very outdated, and would most likely be impossible to re-establish. The gold dinar and silver dirham came to gild the false ceiling of a utopian State  already overloaded with kitsch paraphernalia exalting the return of the King and cavalry charge, jihadi-warrior lyrics, baroque prophecies and apocalyptic battles.
The coinage put into circulation were partially inspired by 7 th century Omayyad models. The video explained the reasons behind the creation of a Sharia-compatible currency and how it would bring about the downfall of the West. Both the spiritual and physical bodies of the Khilafah must be cleansed of secular innovations and religious heresies which have been accumulated over time. The Islamic State currency, in the same way as its government, legal practices, language and beliefs, had to be halalized, that is to say protected from impurity  of speculation, virtual value , banking and usury, and stripped of anthropomorphic representations.
It would have been, for instance, clearly unacceptable to mint the 5 gold dinar with the effigy of Abu Bakr al-Baghdadi despite the fact that Omayyad coinage did depict the Caliph brandishing a sword in the period preceding the first properly Islamic dinars. Interestingly, the Islamic State monetary reform was not simply Jihadist eccentricity, nor was it the first attempt to resurrect a Sharia-compatible currency.
This return to the intrinsic value of money has precedents in 20 th century Islamist political and economic thinking. In the modern Islamist forges, the dinar is first and foremost a device to materialize a religious identity. Its economic relevance is quite secondary. In the Malaysian State of Kelatan, the Parti Islam Se-Malaysia officially introduced on August 12, , a Sharia-compatible currency based on three denominations 1, 2 and 8 of gold dinar 4. Apparently, this initiative has shown some success. And Allah multiplies [His reward] for whom He  wills.
The year is of the Hegira i. The same legend is found on all the coins. The central circle contains the denomination numerals 1 Dinar flanked on each side by indication of weight 4. Those numbers are equivalent to the weight, purity Why a higher purity? Our hypothesis, further developed in the third chapter, is that the Islamic State produced a first and quantitatively modest cycle of minting, circa June- October , including an unknown number of 21 carats dinars.
There is circumstantial evidence that this first cycle of production included, or was put into circulation at the same time as, a number of gold-plated dinars of substantially lower quality. This predictably tarnished the reputation of the new currency and triggered a second cycle of minting. The initial choice of 21 carats was probably not inspired by the standard of Omayyad coinage, but was due to its common usage in the Arab world.
Nostalgia has its limits, as the modern and clean aesthetic of the emblematic 5 gold dinar illustrates. Source: Twitter June Their ideology is a motley collection of millenarian and neo- fundamentalist ideas coddled together. Its Caliphate is a patchwork between modern statecraft and utopian fantasy, with propaganda outlets a hybrid between fashionable Vogue, entertainingly violent Counter Strike and a Salafi gazette. In the 7th century, the monetary reform initiated by Caliph Ibn Marwan followed a pragmatic policy of currency parity with its prestigious Byzantine and Sassanid neighbours, while the Islamic State coinage aims at materializing its revolutionary utopia regardless of its financial relevance.
It does look like a sort of numismatic Salafism, the dinar must abide by a catalogue of taboos and prescriptions while benefiting from a luxurious and clean design worthy of an Apple product. Alas, Salafists are not hipsters. The 5 dinar is allegedly composed of It is possible that a different version of the coin was produced by the end of Based on a design close to the 1 dinar featured above, with the same margin of diameter difference between the 1 dirham 2 cm and the 5 dirham 3. Dirhams The Islamic State had initially published three prototypes of silver dirhams, with a facial value of 10, 5 and 1, respectively.
The 1 dirham was supposed to contain 2 gr. The Islamic State had announced in the future minting of a 10 dirham 20 gr. We have not been able to obtain a specimen or even find a photograph of the 10 dirham. Our assumption is that this coin was not part of the second and more prolific cycle of minting. It is however possible that this prototype was minted in small quantities in before the Islamic State changed the engraving more about that later. The 2 dirham 6 gr. He writes that this was undoubtedly minted by coin dies made for the Near and Middle East, with a smooth cut, a reduced diameter of It is close to the coin of 2 Euro cents 19 mm for 3 gr.
Also, it is magnetic and therefore not made of pure copper. He explained they were mostly distributed by the organisation among its members in the form of wages, and commonly used to pay the dower mahr to the bride in the event of a marriage. In February , more than one year after the Caliphate announced its intention to retire the fiat currency to the benefit of gold and silver, activists based in Raqqa reported that the  Islamic State tax collectors accepted only USD for payment of fees and charges. If these testimonies are true, it clearly shows that the monetary reform was not as successful as the Caliph and its retinue expected.
The new currency was gradually introduced via change offices, where the inhabitants were supposed to trade their impious money for Sharia-compatible coins if they were to be able to pay their bills or legally sell their goods. Dinars and dirhams had no option but to coexist with US dollars and Syrian pounds. Businesses were required to list prices only in gold or silver coins, meanwhile they still accepted payment with USD or  SYP. The narrator explains that despite the bombing campaign, the Islamic State had imposed the strict obligation to use the new currency for all transactions contracts, goods and services, salaries, etc.
According to interviews collected by Religioscope, the Islamic State had established several  minting workshops. We know from the Turkish press that in a clandestine workshop was set up in Sahinbey, halfway between Gaziantep and the Syrian border. We also have evidence indicating that a striking factory was established in in Mosul, Iraq, and later was moved or replaced, possibly in Mayadin, Syria.
Our interviews also revealed that at least two sets of minting equipment were used, one of them possibly imported from Italy. In the pictures published by the Turkish press following the police raid on the Sahinbey workshop in October , one can identify the obverse and reverse coin dies that were used to mint the 1 and 5 gold dinars. We compared several collections of coins i. It is worth noting, however, that only the set illustrated in this article went through a spectrometric analysis.
In September , the online weekly Niqash conducted a few interviews with gold traders based in Mosul who denounced the famous gold dinars as gold-platted frauds. Jambu inspected in March had their alleged metallic degree of purity. Jambu concluded at the time that if genuine gold and silver coins were indeed minted by the group in , they were probably limited to a few specimens for propaganda  purposes, the rest being possibly made of lower grade alloys.
Either in order to preserve resources or to catch up on production delays after an announcement amid great fanfare at the end of suggesting even Caliphates must experience bureaucratic inertia , it is not impossible that the group felt compelled to produce a first set of coins of lower quality. There are, however, good reasons to doubt that.
The Syrian sources from Raqqa with whom Religioscope conducted interviews in the spring of explained that a substantial number of their countrymen had hoarded dinars and dirhams before quickly selling or melting them as soon as the followers of the Caliph had retreated. It is likely they also melted these down to avoid being accused as sympathizers or members of the Islamic State by the new occupying forces.
Also, in early , Jenan Moussa, reporter with the Dubai-based Al Aan satellite channel,  published a description and a few pictures of dirhams on her Twitter feed.