Business & Finance Economics

The Unadulterated Gold Coin Standard

I have been pounding the table in favor of the Unadulterated Gold Standard for lo these many years...
is it time for a tighter focus, is it time to start pounding the table for the Unadulterated Gold "Coin" standard? The Unadulterated Gold Standard is different from the Classical Gold Standard as practiced in the nineteenth century in that it excludes 'Fiduciary media'...
that is, bank notes in circulation backed by loose promises vs.
bank notes backed by physical Gold in the vault, and by Gold Bills of Exchange that mature into Gold in less than 91 days in the portfolio.
Fiduciary media open the floodgates of manipulation; indeed, monetization of government debt is the classic example.
Treasury bonds on the asset side of the Central Bank's balance sheet match bank notes (Dollars, Euros, etc.
) on the liability side.
This process is unlimited; Governments can and do and have issued bonds to the sky...
and the CB's can and do and have created ('printed') Dollars to the sky.
So, is eliminating unlimited Fiat currency printing the main thrust of the Unadulterated Gold Standard...
and does it accomplish this aim? Well, the answer is a clear no...
And yes.
In fact, eliminating unlimited printing is treating a symptom, not curing the disease.
The disease of our monetary system lies in the concentration of power in a (very) few hands; a few hands that can be corrupt, can be misguided, can be coerced...
and can act contrary to the best interest of the real economy, and contrary to the best interest of the average wage earner.
These 'few hands' act in their own self-interest...
while ever pretending that they act 'for the common good'.
Let us remember the Golden Rule; he who has the Gold makes the rules.
If Gold lies in a (very) few hands, then rules are written by those hands.
If Gold lies in millions of hands throughout the land, then many diverse hands will write the rules.
It is vital to differentiate a 'Gold Bullion' standard, whether unadulterated or not, from a Gold Coin standard.
Bullion in the form of bars is mainly for the very rich; a Kilo bar of Gold today buys around $40,000 USD...
a figure much too big for every day trade.
A hundred ounce bar is valued at around $120,000.
Guess what a Comex 'good delivery' 400 Oz bar costs? On the other hand, the Gold Sovereign coin, the Gold Franc, the Gold Napoleon all weigh in at 7.
98 g, around 0.
2566 Troy oz...
at a current cost of about $400.
These coins in circulation were the heart of the Classical Gold standard.
A $400 coin is much more amenable to being held and circulated by the masses; especially if accompanied by Silver coins that evaluate at around $25; about 1/15 th value of the same mass of Gold.
Only the Unadulterated Gold Coin Standard ensures not only that money is honest, but most importantly ensures that this honest money stays in the hands of ordinary people, not in the hands of powerful (pseudo) elites.
One Sovereign coin represents one Sovereign vote.
A true democracy; where sovereign power lies in the hands of the people.
Let's start pounding the table for the Unadulterated Gold Coin Standard.
Rudy J.
Fritsch
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