Gold standard dropped by USA August 11, 1971, but some think that is what the USA needs
The 220 kg Gold brick displayed in Taiwan
On August 11, 1971, the USA dropped the connection between its dollar and gold.
Gold has increased in value much more than the official government inflation rates since the USA detached its dollar from any type of gold standard. The price of gold will fluctuate (for more current gold quotes, check out the Financial Information link,
Some have speculated that the USA should go back on a gold standard. Notice the following:
Gold-Backed or Bust: Judy Shelton’s Plan to Tame the Fed and Restore the Dollar
Judy Shelton has spent her career advocating for sound money.
Her latest book, Good as Gold: How to Unleash the Power of Sound Money, makes an up-to-date case for reinstituting a gold standard. Her intriguing conclusion is that the dollar can be reconnected to gold by simply issuing federal treasury bonds with gold-redeemability clauses. …
Although Dr. Shelton would prefer a system along the lines of a classical gold standard, she would probably be content with other monetary systems that dramatically reduced the discretion of policymakers. The real problem with our current monetary regime is not primarily technical. It is behavioral. Because public officials have strong incentives to inflate the currency, bail out various corporations, and underwrite extensive government borrowing, they do a poor job conserving the value of fiat currency or providing a predictable, stable system of interest rates, credit, liquidity, etc. …
Dr. Shelton points out that unstable money and exchange rates create costs to doing business. International firms must devote time, energy, and money to protect themselves from erratic fluctuations in currency exchange rates. Creating these “hedges” to protect their profitability from exchange-rate risk necessitates additional classes of assets and asset traders – contributing to greater “financialization” of the economy. While the services being offered create real value for corporations, they come at a price and would not be needed under more stable monetary arrangements. 11/16/24 https://activistpost.com/2024/11/gold-backed-or-bust-judy-sheltons-plan-to-tame-the-fed-and-restore-the-dollar.html
The idea that gold could be accumulated to back the US dollar is interesting but not realistic for several reasons.
The first is that politicians like the flexibility of increasing the money supply when they want to.
Although the Bible opposes “dross” money (Proverbs 25:4; Isaiah 1:22-25; Ezekiel 22:18-22), modern ‘experts’ have a different view. The wrong views on economics will lead to economic problems and ultimately the total crash of the dollar of the USA.
The second issue is that there is not enough gold to back the USA dollar, even at recent record high prices for gold.
Furthermore, like what happened in the past, is that governments and others would try to redeem their dollars for gold:
Redeeming dollars for gold is one reason that the USA dropped the gold standard.
Because the USA was starting to not have enough gold to back its dollar, way back in 1961, the Plain Truth reported:
Germany, Japan have the largest surpluses of GOLD and DOLLARS…Rich Uncle {Sam} has the greatest deficit in governmental history and a GREATER DEBT than all the REST OF THE WORLD COMBINED!…
Vast foreign aid programs drain the U.S. Treasury … American spending to supply services and to support our troops in foreign countries and military installations around the world amounts to…dollars flowing out of the frightened U.S. Treasury. All of these factors, combined with heavy taxes, gigantic public and private debt, and no gold backing for our own currency if foreign investors demanded gold for their dollars, adds up to the staggering revelation that the U.S., richest nation in the world, is bordering on bankruptcy! (Hill DJ. What the US Gold Crisis Means to You. Plain Truth. February 1961, p. 9).
France did finally cash in dollars and this caused a crisis in the USA. The US answer was to go off the gold standard completely in 1971. About the same time it made a deal with Saudi Arabia to price oil in dollars. So, while this prevented “foreigners” from being able to redeem US dollars for something from the USA treasury, instead it meant that dollars could be used to by oil. As other (mostly smaller) oil producers followed Saudi Arabia’s lead, this has served to support the US dollar for several decades. However, Saudi Arabia and others are now looking at not only pricing/selling in US dollars. One day in the future, the USA dollar will be worthless.
Now the third issue with a gold standard is that the price of gold would simply have to be too high or the redemption value of the USA dollar to gold too low for it to function.
I asked Meta AI, “If the US dollar was fully backed by gold, how much would each troy ounce of gold have to be worth?”
It responded with:
To calculate the value of one troy ounce of gold if the US dollar were fully backed by gold, we’ll use the following numbers:
Total US debt: $36 trillion (as you mentioned)
US gold reserves: approximately 8,133.5 tonnes (260 million troy ounces), as reported by the US TreasuryAssuming the entire US debt ($36 trillion) would be backed by the US gold reserves (260 million troy ounces), we can calculate the value of one troy ounce of gold:$36,000,000,000,000 ÷ 260,000,000 troy ounces = approximately $138,462 per troy ounce
So, if the US dollar were fully backed by gold, each troy ounce of gold would need to be worth around $138,462.
While the above way of calculating the amount can be debated, the reality is that gold is not now intrinsically worth anything like that in terms of its industrial or commercial value.
Anyway, it is not practical for the US to have its dollar fully convertible to gold.
When I asked Meta AI about the price of a tulip bulb during ‘Tulip Mania’ in the Netherlands, it responded with:
During the height of “Tulip Mania” in the Netherlands (1634-1637), some rare tulip bulbs were sold for exorbitant prices, equivalent to:
If the US dollar was fully backed by gold, the gold price would also be ridiculously high, like tulips of old.
That said, when the US dollar one day collapses, gold is prophesied to still have value for a few more years.
Once the US dollar does fully collapse, I maintain that somehow, Europe will have at least an implied gold backing of its currency (for details see Gold to be used to back European currency?).
Anyway, the US does not intend to go to a point where its dollar is truly backed by gold.
And yes, its dollar will collapse.
The old Worldwide Church of God published the following in the old Good News magazine:
Good News, Oct-Nov 1979Of course, since gold is regarded as a disaster hedge by many investors, prudence might dictate that perhaps a small fraction of your liquid assets be in gold: (Caulkins J. WHEN MONEY FAILS. Good News, October-November 1979)
While gold will help some for a time, gold will not save humanity, only Jesus can do that, but it may be prudent for people to consider the signs of the times.
For additional information, check out the following articles:
The Plain Truth About Gold in Prophecy. How Should a Christian View Gold? What do economists and the Bible teach about gold? Gold and silver may drop in value. Inflation/deflation? What do Christians need to know about gold? Two videos of related interest are Beast Prophecies and European Gold and Germany, Gold, and the US Dollar.
24 items to prophetically watch in 2024 Much is happening. Dr. Thiel points to 24 items to watch (cf. Mark 13:37) in this article. Here is a link to a related video: 24 Items to Prophetically Watch in 2024. Here is a link to related video in the Spanish language titled 24 Cosas a tener en cuenta en 2024: https://youtu.be/6f7oqEhjhbg
Who is the King of the West? Why is there no Final End-Time King of the West in Bible Prophecy? Is the United States the King of the West? Here is a version in the Spanish language: ¿Quién es el Rey del Occidente? ¿Por qué no hay un Rey del Occidente en la profecía del tiempo del fin? A related sermon is also available: The Bible, the USA, and the King of the West.
Who is the King of the North? Is there one? Do biblical and Roman Catholic prophecies for the Great Monarch point to the same leader? Should he be followed? Who will be the King of the North discussed in Daniel 11? Is a nuclear attack prophesied to happen to the English-speaking peoples of the United States, Great Britain, Canada, Australia, and New Zealand? When do the 1335 days, 1290 days, and 1260 days (the time, times, and half a time) of Daniel 12 begin? When does the Bible show that economic collapse will affect the United States? In the Spanish language check out ¿Quién es el Rey del Norte? Here are links to two related videos: The King of the North is Alive: What to Look Out For and The Future King of the North.
The Great Monarch: Biblical and Catholic Prophecies Is the ‘Great Monarch’ of Catholic prophecies endorsed or condemned by the Bible? Two sermons of related interest are also available: Great Monarch: Messiah or False Christ? and Great Monarch in 50+ Beast Prophecies.
The End of US Dollar Dominance Is the USA losing its economic status? What about the petro-gold-yuan? A related video is also available: US Dollar being challenged by Gold-Petro-Yuan.
Physical Preparation Scriptures for Christians. We all know the Bible prophecies famines. Should we do something? Here is a version in the Spanish language Escrituras sobre Preparación física para los Cristianos. Here is a link to a related sermon: Physical preparedness for Christians.
Europa, the Beast, and Revelation Where did Europe get its name? What might Europe have to do with the Book of Revelation? What about “the Beast”? Is an emerging European power “the daughter of Babylon”? What is ahead for Europe? Here is are links to related videos: European history and the Bible, Europe In Prophecy, The End of European Babylon, and Can You Prove that the Beast to Come is European? Here is a link to a related sermon in the Spanish language: El Fin de la Babilonia Europea.
Lost Tribes and Prophecies: What will happen to Australia, the British Isles, Canada, Europe, New Zealand and the United States of America? Where did those people come from? Can you totally rely on DNA? Do you really know what will happen to Europe and the English-speaking peoples? What about the peoples of Africa, Asia, South America, and the islands? This free online book provides scriptural, scientific, historical references, and commentary to address those matters. Here are links to related sermons: Lost tribes, the Bible, and DNA; Lost tribes, prophecies, and identifications; 11 Tribes, 144,000, and Multitudes; Israel, Jeremiah, Tea Tephi, and British Royalty; Gentile European Beast; Royal Succession, Samaria, and Prophecies; Asia, Islands, Latin America, Africa, and Armageddon; When Will the End of the Age Come?; Rise of the Prophesied King of the North; Christian Persecution from the Beast; WWIII and the Coming New World Order; and Woes, WWIV, and the Good News of the Kingdom of God.
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