Trump to put nut on fed reserve board

Thanks for the correction. I didn’t realize that the numbers I was looking at valued gold at other than market value.

I’m confused about why you’re only considering money in circulation here? In the future gold standard, are dollar bills redeemable for gold but money in bank accounts isn’t? Won’t that cause the run on banks to end all runs on banks? How do you even have a functional banking system if a printed dollar bill is worth gold but a bank deposit isn’t?

I’m willing to accept I’m totally wrong about all this stuff, but the above doesn’t make sense to me.

Also, mea culpa here. That value was in someone else’s post later, and my brain remembered the number and the gist of Whack-a-Mole’s comment about becoming “colossally wealthy” and my own math about what the price of gold would be if you went with Money Supply / gold reserves and conflated them all.

I was trying to be conservative. In reality, you are correct and we would probably have to map it to M1 or M2, which simply changes my $7803 number by a factor of 2.5(ish) or 9(ish), making those gold holders even more wealthy, but doesn’t change the validity of the argument he was making.

It appears to me that we’re now in agreement on what the gold standard actually means and what would happen to the price of gold if we chose to do so. If so, we can go back to pointing out what a wingnut Judy Shelton is.

Here’s my take on her as an economist:

Judy Shelton: “Interest rates are too low and over stimulative.”

Trump: “I think we should lower interest rates”

Judy Shelton: “As I was saying, we should lower interest rates to stimulate the economy, and we should kill the Fed and move Ft. Knox into Mar-a-Lago”

I’m not sure the definition of “gold standard” is the interesting topic, but I don’t know that anyone else is interested in the disagreement either. :slight_smile:

how do silver certificate bank notes fit into this?