Will a GOVERNMENT Gold Standard force Fiscal Responsibility? No! But I would like to See a PRIVATE Sector Gold Standard, thanks to Bitcoin… – April 23, 2022,

The past gives us a glimpse into the future and the past is filled with GOVERNMENT gold standard FAILURES. When you start talking about a GOVERNMENT gold standard you have to take into account human nature, democracy, and authoritarian governments, which could also include monarchal governments, with Republics for the people.

If it’s one thing everyone should know is that the government will always find a reason why it MUST debase the currency, if I live in a democracy, TAXATION is accepted by most citizens, price and wage controls are accepted by the citizens and if any branch of the government has control over the money supply, the government Gold Standard WILL fail.

 

In fact, the gold standard might fail faster in Democracy than it would under an authoritarian regime. After a properly constructed Republic based on Liberties and Freedoms is formed, what good is Democracy? The market is a Democracy, political democracy is merely a redistribution of resources. Being that Gold is a scarce resource, once the government granted power by the majority is allowed to redistribute resources, the GOVERNMENT gold standard is the first casualty.

The mere fact that Bernie Sanders still has popularity in the United States should be the first sign that a Government gold standard should be OUT of the question. A private sector gold standard, on the other hand, would work. I honestly find Bitcoin WORTHLESS, I like blockchain technology, and being that I’ve trademarked things I like Non-fungible tokens (NFTs), but Bitcoin in my view is worthless, especially if Gold could be put on a Blockchain.

What makes this modern system work is fractional reserve banking, which can easily work with Gold. What makes fractional reserve banking rather silly with Bitcoin is that it’s purely a confidence play. Fractional reserve banking with a Private Sector gold standard would work because banks and other private entities would be very stringent with their lending and one of the things you have understand with a private sector money supply is that wage and other price controls WOULD NOT APPLY, meaning that it would make the lender’s job easier regarding the viability of a business plan.

In the modern market, a lot of businesses go bust because of Government changes to the rules and regulations in the marketplace. Now, why is it so easy for the government to change the rules? Well, first and foremost the government controls the money supply, the government would control the money supply even under a Government gold standard. Under my concept of a private sector gold standard, the gold would be all over the world, and countries to have the privilege to hoard private money would have to have favorable laws on private ownership.

Again I’m looking at Private sector gold in the manner laid out to us via Bitcoin. Under my gold standard, my gold wouldn’t be hoarded in Fort Knox, my gold which could also be in the form of a paper note would be determined by the private sector entities which would be obliged to have their gold holdings scattered all over the world, to avoid confiscatory governments.

As a Canadian, I can tell you that the Canadian government does not want to allow Private health Care to have a presence in Canada, why? Because the market will abandon public/universal health care altogether, and by the market, I also include health care workers themselves. I bring this up because most governments aren’t going to want a private sector gold standard, but as we saw with El Salvador there will be countries that say let’s give it a try.

Unlike Bitcoin, Gold already has a hoard of people ready to build the infrastructure, in fact, a private sector Gold Standard would be the best thing to ever happen to the blockchain, because the private sector is all about lowering costs and the blockchain would help private sector banks save on costs tremendously.

Knowing all of this, you’d have to see my point as to why I don’t want a GOVERNMENT gold standard. a Government gold standard will give the government all the more right to steal from you. a government gold standard doesn’t even guarantee that you can withdraw your gold from the government. If you can’t take your gold holdings from the government are you under a gold standard? No!

Furthermore let’s say if you go to withdraw your gold the government puts you on some government terrorist list, claiming that by taking out your gold you’re creating a threat to national security. Count me out of that one, I’m not that naive! We’ve all seen governments create good people into criminals before, and we’ve also seen how the media can spin things. The government will eventually deny you your gold and there will be NOTHING you can do about it, you’ll be able to do less than nothing if you live in a gold-standard country that denies you the right to own a firearm.

If a private-sector note-issuing bank with gold holdings denied you access to your gold, that company could soon find itself BANKRUPT. Now, similar to cryptocurrencies, once gold is allowed to be used as legal tender you will soon find THOUSANDS of companies that want to issue their own notes, eventually this would be consolidated into a top 10-20, similar to what we see with fiat currencies that have Reserved currency status, and from there the Private Sector gold standard would take off.

a Government gold standard will never take off, from the moment of its inception the government is going to want to have special drawing rights and full control for whatever reason they deem fit. So for me, until we start talking about a PRIVATE SECTOR gold standard I’m not interested. I’ve said it before I’ll say it again, under these current conditions based on the low financial IQ in the world, I prefer a fiat monetary system. Let the idiots in charge destroy the money they create, keep my gold out of it.

Interesting times ahead!