In an earlier Post I showed that the gold standard is the standard of currency mandated by the constitution of the United States. My or your opinion of whether or not it should be has no standing.e4e, well then I'll be happy to relieve you of your burden whenever you find yourself carrying any of them...
e4e, I claimed that, "Requiring a gold standard inflates the value of gold by fiat" to which you replied:
Regardless of some inscrutable particulars, the law of supply and demand determines value, and if a government requires gold to back its currency, the government thereby significantly increases demand and limits the supply of gold as a commodity. So e4e I don't know how you could disagree that requiring a gold standard would inflate the value of gold. And that would happen by fiat, that is, by the word of a government official, or a constitution, requiring a gold standard.
-Bob Enyart, KGOV.com
p.s. Just read your post #132 e4e. Sure I'd love for you to clear up the confusion arising from Newman's post, but can you also address this claim of mine that a gold standard inflates the value of gold by fiat?
To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures is the exclusive obligation of the Congress of the United States should it decide to exercise that obligation. Even if they had decided not to article 5 of the constitution mandates that the state pay its bills with gold of silver. Necessarily gold and silver coin.
Article 1 Section 8-------To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures;
article 1 section 10-------make any Thing but gold and silver Coin a Tender in Payment of Debts;
It is unconstitutional for the congress of the United States to delegate that power according to The United States Supreme Court but sense when has a supreme Court decision stopped congress from doing any thing.
It is lawful for congress to enact a Central Bank but is it unlawful for that bank or for congress to permit that bank to coin money or regulate the value of that money.
The Coinage Act , passed by the United States Congress on April 2, 1792, established the United States Mint and regulated the coinage of the United States. This act established the dollar as the unit of money in the United States, declared it to be lawful tender, and created a decimal system for U.S. Currency.
The dollar was valued at
371 4/16 grain (24.1 g) pure or 416 grain (27.0 g) standard silver
There was no gold valued at a dollar only $20, $10, and $5 increments with specifications for each.
In 1859 a gold $1 coin was added making the ratio of silver to gold 15/1 and then 16/1.. The point being that what ever else is true. The dollar is a specific amount of gold or silver. For example in 1932 we are told that gold was 34 dollars an oz. But that is impossible. What ever the 34 something or other is it cannot be gold because the value of a dollar is a specific amount gold or silver.
I have in my possession a set of Walking Liberty Silver bullion coins. According to the 1985 coin act they are legal tender. To day thay are wort on the market over 30 Federal Reserve Notes each. At a minimum. The government tells me that they are worth just 1 dollar each if I use them as legal tender. The only law that establishes the value of a dollar is the 1792 coinage act as amended from time to time. The value is not what they are worth because FRN are not dollars. The gold and silver coins are not inflationary. The are the staple by which you can judge the worthlessness of the Federal Reserve Note. You see, it is impossible for the dollar to inflate. It is impossible for the gold or silver to change form. No monetary value has ever been placed on gold or silver dollars. Only the amounts prescribed by congress has changed.
If you have a silver dollar in your pocket I will give you a a Fed Reserve Note for it. If you have a $50 gold double eagle in your pocket I will give you 50 Federal Reserve notes for it. Fact is, unless you have picked up a silver dollar or a double eagle from some where I would venture to say you have never had a dollar in your pocket. There is no where in federal law where congress has defined a Federal Reserve note as a dollar. You are just like the rest of us. You never buy anything with a dollar.