Is The Canadian Dollar Backed By Gold?
I get a lot of questions both from Canadian and American twitter users asking if the Canadian dollar is backed by gold. Many people are scared with the current state of the United States economy and they are looking for a safe haven and they ask if the Canadian Dollar is backed by Gold. I guess their reason for asking this question is if the United States dollar Crashes they can then switch to Canadian dollars and then I guess cash their money into gold. I’m not entirely sure but I think it’s something to that effect.
Furthermore more than ever more and more people are becoming aware that the United States Dollar is not backed Gold. Although this alarms people the truth is that had the gold standard not been removed from the United States, many of us would not enjoy many of the things we enjoy today. If money was still backed by Gold we would have to find or dig for gold in order for the government to print more money. This would inevitably lead to deflation especially in the United States a country that grows so rapidly, and would most likely destroy the system we currently have in place
The reason why many people speak highly of the gold standard is because it rewards “Savers” & not Investors. If we as a civilized world return to the gold standard whoever already has the gold has all the power and if those people decide to be stingy with their money the rest of us don’t stand a chance.
So Is The Canadian Dollar Backed By Gold???
The answer is obviously NO. There is no such thing a Fiat currency being backed by gold.
What is a fiat currency?
Fiat simply means any money declared by a government to be legal tender. Legal tender for Canadians basically means the CAD* If you have some Canadian money with you just look at it. there’s an example below.
The portion next to the red line clearly states “This Note Is Legal Tender”. Now allot of you have been frightened by conspiracy theorists who are both trying to make a name for themselves and trying to make a fast buck. Although there is some truth to what some of them are saying the real truth is most of what they are doing and saying is pure speculation. We all know there is corruption in Government but for most of us we just want to make sure we can live our lives without worrying about losing everything.
It’s 2010 as I am writing this post and our world is going through a change. The people are demanding a better world and wheels are now in motion. Now honestly the money system as we know it today might crash but having a gold standard is not what’s going to make it better. If you look back in history The Gold or Silver Standard has always been the main contributor the failure of many nations. Having a Gold standard actually causes more wars because more gold needs to be found in order to expand the economy.
Plus unlike silver (at the moment anyway) Gold is not a consumed precious metal. I predict as the decline of silver becomes more apparent that gold might be used similarly to how silver is used today but that’s getting away from the point here. For many of you who are like me and grew up poor you should actually be thankful the Gold Standard was removed. Had it not been removed us poor folks would have never stood a chance.
In our current markets when times get tough our governments can print more money. Had the gold standard been there our governments would have to dig for gold. I will use another example that some of you are more familiar with. In many poorer nations Farmers are the rich people. Not the doctors or dentists the farmers. Why because they have the land they have the food. We all need to eat right? What this means for the poorer people of those countries is that the poorer classes don’t stand a chance. This means if you we’re born poor in these places don’t expect anything to change, this means unless you can marry into a rich family your best chance to be rich is to get into the government which is one of the reasons why so many 3rd world nations have such corrupted governments.
In the western World as well as in Europe they’ve made it where everyone has a chance at wealth. When the demand is there Money is Printed or loaned. The smart Investor will get money and find a way to make it more money. This is called capitalism and this is one of the reasons why the gold standard was removed. So again to answer the question is The Canadian Dollar backed By Gold the answer is NO and in my opinion be thankful that it’s not.
For those of you want to opt out of the Canadian dollar and would prefer to use Gold and silver consider reading the Where To Buy Gold Coins Online post
By removing the gold and silver standard the only people who have benefited have been the banks, not us the tax payer. They have been given the printing press, no accountability and inflated the money supply and reduced our purchasing power. How in the world do you find a non-backed money system good! I’m sure you believe “War is Peace” also.
what planet on you on AuAg? Yes ok good point about the banks – well on a Gold standard the companies that sell the gold and silver will replace the banks and then you have a whole new problem so I guess it safe to say to say you believe “War is Peace” also. You conspiracy theorists know nothing about progression or wealth for that matter.
Say what you want about expanding the economy and printing money when we need more, the fact is The Federal Reserve is printing money irresponsibly and the only people benefiting are banks and corporations on the inside. The amount of devaluation of the dollar has been 93% over the past hundred years. With gas over 3 dollars a gallon, do you think the gas is somehow better or worth more than it was when it was at 1 dollar a gallon? No. It’s the same gas, it’s the value and purchasing power of the money that has failed, is failing now. Money can still be backed by gold, the percentage would have to be figured out, obviously, but just being able to tie the hands of the criminals in charge of our money would be worth the slightly slower, but far more stable growth. Your argument neglects to point out that over half of the nation’s gold was confiscated in 1933, and the price promptly inflated for profit, and the amount of gold backing the currency became less and less over the years until it was abolished in 1971. During that time, overseas banks that were paid in gold with redeemable dollars, started redeeming them and subsequently drained our gold reserves leaving us pretty bone dry on gold. The Fed currently has around 500 billion in hard assets, yet is 65 trillion in debt. With accruing interest, repayment is impossible. So your “awesome, wealth building” fiat currency is on self-destruct mode, and nothing can stop it! The “wealth” this fiat dollar has created is false, fake, not real. Unless you purchase a hard commodity, such as gold, and hold it. Hence the argument, “paper is not wealth”.
Thank you for your comment but what makes you think Gold is any more valuable than fiat currency? The world wasn’t at peace when dollars we’re back by Gold in fact slavery and war was the name of the game when dollars we’re backed by Gold. I understand what you people are saying in regards to printing money but what you don’t seem to understand is that under a Gold standard especially in times of nuclear weapons is a very dangerous thing. Example if a few Rich people from Saudi Arabia decide to take their “Gold” out of American banks and the world is under a Gold Standard America goes down Europe goes down Canada goes down which ultimately leads to war.
In order for a Country to have power it must be able to control its money supply. If dollars are back by Gold – GOLD is the money supply and he who has the gold rules. Things don’t work like that with fiat money – LAWS are the money supply and the country with best laws enjoy the best standard of living if you don’t believe me read about Switzerland and learn why the average Swizz citizen makes over $400,000 per year. Switzerland’s government has the closest thing to a direct democracy in the world their people are active in politics which means – they the people control where their fiat money goes. The problem Canada, America and other countries are facing is that most of the people are not involved in politics instead they go down to wall street and pitch tents hoping someone will listen to them. If you have a problem with your government get involved in politics otherwise stop the complaining.
People who think Gold will solve this problem have not studied history. Gold standards throughout history in every nation dating back to the Roman empire have always failed.
My goodness, a simple one line question requires the reader to wade through an entire paragraph to convey a simple NO ? ….scary!
@kathy Are you colour blind?
Steve,
All I have to say is educate yourself. Spent a couple of your fiat dollars and buy the book “The Creature from Jekyll Island” by G. Edward Griffen which is in it’s 5th edition.
Then tell me whether you really can stick to your statement that fiat money is good and learn just how the Roman Gov’t. failed.
@Bill Thank you for your comment. I’ve read the book that’s and that’s only one persons point of view. The problem with you people is you think Money is the problem, Money is not the problem education about money is the problem. A country must control it’s money supply, If fiat money is backed by Gold all countries will fall because of Rich money speculators. There’s no such thing as a perfect monetary system which is why under a colonial system of government a country must control it’s money supply. With a Gold back monetary system Gold and the markets will control the money supply meaning in this day and age the people with all the Oil and resources will rule, you people are looking at things from an individual perspective and not a global one. Deflation is what a country fears most not Inflation. The funny thing about the way you people think is the fact that you can still buy Gold and silver bullion coins? If you have a problem with fiat Monetary system just continue to buy Gold and silver? If Gold and silver backed money worked we would have never had a great depression!
For those of you interested in this topic type “the creature from jekyll island mp3” in Google or visit Amazon and type “the creature from jekyll island” It’s a very nice book and it will open most of your eyes to what Ron Paul is rambling about. However my position on this topic is Fiat Money with a democratic government makes a lot more sense than a Democratic government with Gold back money supply.
Money speculators through out history have always destroyed governments and great countries this goes back to the Roman empire. Before getting sold on the idea of a gold backed money supply read about “money speculators” first. Add this to the fact there are rich Arab terrorists and Countries that wish to destroy America, Canada Europe and other developed nations and you’ll understand my stance on the federal reserve and fiat money.
Yes I would love a world with people who are peaceful and will “share the wealth” but this not the worlds current REALITY. The reality is that they’re ruthless people in the world that if given the opportunity will take the wealth of countries and people and HOARD it. Gold backed money allows rich people to HOARD money.
If Rich people are allowed to HOARD money they can also prevent whole governments from functioning properly. If you read and learn about the whole story behind the great depression you would know this. “MONEY SPECULATORS” Read and educate yourself on it without bias.
“the creature from jekyll island” is a book created from a person with a singular point of view. Monet means different things to different people which is why with currently have an elastic monetary system. Do you have a computer right now? Do you have electricity? Do you have access to food? Do you have shelter? Do you have the ability to purchase Gold or Silver bullion coins? If you answered yes In my opinion you shouldn’t be complaining about Canada’s fiat money!
What will happen when/if the dollar collapses?
@Anonymous ~ In the event that happens it would be a good idea to have Guns, Oil, transportation, food, and silver or gold BULLION coins which can be bought at bullion dealers locally or online.