How the Hell does a "Mixed Gold Standard" Work?

How can a country have a Central Bank like the ((FED)) printing money and have the money exchangeable for gold? It makes no sense. From my understanding the more money the FED prints the less you can exchange the gold for. That's how I was told it was but that seems like a huge rip off. From 1913 - 1971 we had this system and I still don't fully understand it. It just seems like the most Jewish system imaginable.

just remember the POTUS said send in your gold so we can start printing money on paper. not sending us your gold is illegal.

I know about that, it's terrible how they stole everyones gold but I'm wondering how did the FED print money during the gold standard? Did that just make the money be able to be exchanged for less gold?

well get pictures of the currency circa 1920-1940, it will say silver note exchangable for silver gold etc
then in the 70's nixon changed the reserve currency to be tied to oil instead of the gold index price. can't exchange notes for oil tho.

I know that but I'm saying how does a gold standard work when there is ALSO money printing? Does it just make the dollar exchangable for less and less gold? Because otherwise you have more people able to exchange for gold than there is gold.

yes. countries that do this have jews take all the gold. isis is using a gold currency right now and people are taking the coins back to israel and melting them

So basically you have a gold standard but every year your money can be exchanged for less and less gold by the government? Holy shit that's Jewery.

Yes. The more money is printed the more money you will have to pay for gold, silver, bitcoin, a loaf of bread etc.

yeah OP your question is defining the original inflation. nowadays inflations means printing more fiat. the (((CB))) has the right idea, using a worthless paper, but the thing we hate is there's no accountability and their job is to make the entire world economy work, which means leeching off the best country. they're not interested in patriotism

>gold, silver. loaf of bread
But it's different with gold since it's exchangeable with the Federal Government.

I understand inflation now tho because we have no gold standard. But how does inflation work when the FED is suppose to be able to give you gold for your money? In a documentary I saw a long time ago it said every year they just give you less and less gold for the same money. So even tho you have the gold standard it becomes less and less of a gold standard as your money can take out less and less gold from the FED

you're talking about the value of the currency in exchange for bullion. i believe since usa central bank number 3 "the federal reserve" was made in 1913, the value of american currency has dropped by 87 cents of 100?

the funny thing is if you compare the kinds of things elites buy, what cost an ounce of gold in 1900 still costs an ounce of gold today. hehe

>you're talking about the value of the currency in exchange for bullion. i believe since usa central bank number 3 "the federal reserve" was made in 1913, the value of american currency has dropped by 87 cents of 100?
Exactly! Because the money supply has gone up by like 1000%. However the gold supply hasn't gone up 1000% so how would the FED justify having gold exchangable for dollars? Only answer I see is make the money LESS exchangeable for gold so the same amount of money can be exchanged for less and less gold. It's very Jewery but it's what happened I guess. Is that true?

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Just as well as a "mixed race standard"

well there's no chance in hell we can exchange fiat for gold. even silver certificates. that was the ruse bait and switch.

Thanks Ameribro

It seems like they can't mix though because gold standard and central banking are opposites

Then how did from 1913 - 1971 they justify having the gold standard even tho they were printing money?

>the more money the FED prints the less you can exchange gold for.
thats not any different than what it is currently.

Except we don't technically have a gold standard. So the Federal Government can just say that don't give a rats ass about gold prices. However during the gold standard period they legally had to exchange gold for money.

(((CB))) and (((jews))) and monarch play the long game. they couldn't dupe that generation, they could only start a ruse. but our generation was able to be bait & switched.

same reason people hate the patriot act - it's not what the government is doing today - it's what they could do in the future.

elites use conditioning to get the masses to accept things. it takes f o r e v e r but it works, because elites use nepotism bloodlines.

you think the american founding fathers would have allowed george washingtons son to be president?

bush 1, bush 2, clinton 1, clinton 2, chelsea clinton..............

if the bank printed/loaned too many bank notes, and people lost confidence in the banks ability to pay out the bank notes with gold, that was called a "panic" and people would all try to withdraw at the same time and the bank would go out of business.

>same reason people hate the patriot act - it's not what the government is doing today - it's what they could do in the future.
Except it's not what the government or FED could do, they were already printing lots of money during the 10s to 70s even tho it was a gold standard.

My question is if for every dollar you have can be exchanged for a certain amount of gold, how can that keep up with money supply multiplying by 10? Does the government just say "oh sorry we're now raising the exchange rate". Of course this doesn't apply now since we are off the gold standard but I mean during the gold standard.

gold still has to be kept high because in the commodities market things like steel and iron are used regularly to build indoor plumbing and the like. can't just drop something like gold and silver to a price below iron.

That was in the past before 1913. There were no bank panics (besides the depression) but there was some Jew bullshit going on.

But don't we choose to elect those people?

there wasn't as much inflation during the gold standard. there was alot of war killing off the strong men, and alot of homes being built to pacify everyone else.
back then people remember the fed reserve act being passed in the middle of the night, and having to send in their gold, so the more money printed = more business opportunites (job employment) ...was expected.......

we choose the options presented to us. options are for sale. (look at how much these fucks spend on campaign advertising)

Remember I'm not talking about right now im talking about during the gold standard. I know all the stuff they are doing today.

Is Trump a elite too or is he different?

Ok but that doesn't address my point. I believe you answered.

Does the amount of gold one can exchange for with one dollar change from the period of 1913 to 1971. Because otherwise wouldn't people just make about $500 in 1970 and take out all the gold.

during the gold standard the cost of living index was slowly increased. so the exchange rate also increased very slow. today its going up dollars every year because we're almost to the point where we can't repay debts, thus a foreign country who also is CB controlled with soon destroy us in a war. that's how rothschilds loan to euro countries.

trump is rich as shit, it flabbergasts me that he would be anti-CB. i doubt he wants to see his fortune disappear. but he's not a career politician, so he's got that going for him. he comes from a poor family, and made his fortune the same way george washington did.

>during the gold standard the cost of living index was slowly increased. so the exchange rate also increased very slow. today its going up dollars every year
Except we aren't in a gold standard today so what do you mean the exchange rate is changing? They don't have one now.

>he comes from a poor family,
His dad was rich

>and made his fortune the same way george washington did.
Wasn't Washington born rich?

today the cost of living index is going up dollars every year
fixd
blah. i said rich, not elite monarch funded rich.

I know about all these scams but this is purly economical

Could a dollar in 1913 be exchanged for the EXACT same amount of gold in 1970?

Trump is kosher

i don't know.

look at my ID. i have a GED. true shit.

Tl;dr version which is going to take some liberties, read a book if you want concrete sources and understanding

So a long time ago, the US needed a scheme to get foreign dollars invested into our economy. Solution was to buy up lots and lots of gold, prevent US citizens from selling gold (to prevent capital flight). It worked pretty well from my lazy understanding, anyway sometime around or before that (which is called the gold act of some year in the 30s, fdr was probably president), we switched to a more fractional reserve based banking system.

Now if you don't understand fractional reserve banking look it up, I recommend investopedia for simple finance terms.

Anyway, for a number of reasons that cannot be adequately summarized,a gold-pegged currency caps growth. People like growth and expect it to keep happening forever and get mad if it doesn't. So the idea of switching off the gold standard came up for pretty much every decade until nixon did it.

Now our currency is backed up by people's belief that the US dollar will continue to be useful for exchange at a stable rate, in the next 20 years (typical period of a govt issued bond, which is how the government raises capital to use).

Is this a good bet? Yeah, pretty much. The US government is one of the oldest continuously existing governments in the world and our military might means there is little chance of foreign displacement.

Consider if tomorrow someone told you syrian bonds were going at a good rate. Is it a good idea to buy them? Probably not, since Syria is unstable and your bonds might be worthless when it comes to collect.

Anyway, that's a good jist of the situation. I wrote this from memory and it's not my field of study, but enough is correct that you can get a good start if you want to learn more.

Milton Friedman is good for a historical understanding of the Fed and gold standard.

Oh, they had a rate they could set of the amount required to keep as a reserve. It was one of my levers they had to tweak the economy with back then.

Honestly an old economics intro textbook written in that era would cover these questions in the first few chapters

>Does it just make the dollar exchangable for less and less gold?
>In a documentary I saw a long time ago it said every year they just give you less and less gold for the same money.

>So basically you have a gold standard but every year your money can be exchanged for less and less gold by the government?

From 1913-1971 Gold was exchangable at $20/oz. anybody with 20$ could go and get an ounce of gold. But hardly anybody did because it was not very convenient.

During the great depression all gold in the country, besides wedding rings, etc. was siezed by the US treasury, buyers were compensated at the current rate. Some short time later, the system was changed so that the price of gold was $30/oz.

After world war 2, there began a new era. Gold was still $30/oz., but only foreign banks were eligible to exchange at this rate.

This system continued until 1971, when France was exchanging all their dollars for gold. At this point, President Nixon closed the 'gold window', and dollars were no longer exchangable for gold at the federal reserve or treasury, (I forget which).

During the gold standard era, there were periods of both inflation and deflation. Even under a pure gold standard, banks create money by making loans. during a good economic time, banks are making loans and creating money. Gradually, prices rise. Eventually, when bad times come, the banks stop making loans and just keep taking loan payments. This process destroys part of the money supply, and prices naturally fall.

So, while the price of gold was fixed at $20/oz., The price of everything else was rising or falling all the time in response to market conditions.

after 1960, there was a period of rising inflation until 1981, when it began to fall. eventually, things stabilized and we have had low, but positive inflation since that time

You can see this process in the attached chart. inflation is blue, deflation is red.

I know that. My question summed up is

>Can a dollar in 1913 be exchanged for the same amount of gold as it could be in 1970?

If the answer is yes I'm very shocked since the money supply went up by about 800%.

If the answer is no I ask "then how is gold a fixed exchange rate when it changes within a few decades".

what u want is a paper currency backed by a government that refuses to do inflation.

part of the problem is counterfit money. look into counterfitting during ww2. north korea has a printer making usa notes as we speak.

That doesn't make sense. That means there was more money floating around than gold in the treasury meaning that they would run out.

You make bank runs illegal and have a fractional reserve system in place, you keep the amount you lend out (issuance of paper currency) stable against a supply which you also increase.

But, yeah it's a messy process and eventually you would be representing impossible units of currency, where a claim could represent amounts of gold measurable in atoms.

The point is really how much % of the gold you're entitled to, not the physical amount. Does that sound kind of silly? Yeah, that's the essence of a gold-standard when you intend to have unlimited growth valued by a finite resource, that you can never allow a run of the bank on (everyone extracting their money at once)

Ok so what's the answer to my question? I know that a government printing money is ok as long as it's responsible but I want to know what happened during the gold standard.

So basically in 1913 you get a dollar exchangeable for 20 ounces of gold

You come back 50 years later and can only exchange it for 2 ounces of gold.

Is that how it works? In a nutshell?

>>Can a dollar in 1913 be exchanged for the same amount of gold as it could be in 1970?
No. The rate changed one time in circa 1933, from $20/oz. to $30/oz.

> I'm very shocked since the money supply went up by about 800%.
You're missing out on a couple of things here.

1. while the world supply of gold remained relatively constant, the US government was amassing a big hoard of gold, in order to be able to keep the exchange rate mechanism working.(pic related). So, as long as they kept piling up the gold reserves, there was no worry about the increased money supply.

2. I forgot.

aha i wasnt sure how to use the word peg properly. meds are wearing off. thanks user

>That means there was more money floating around than gold in the treasury meaning that they would run out.
You've got in your head that there was some reason for people to exchange dollar bills for gold bars, etc. As long as you know you can exchange the dollars for gold any time you please, there's no reason to go and do it, because having gold is much less convenient than having cash or a checking account.

But that limits the amount the government can print does it not? However during the 50s the FED printed a lot of money.

>But that limits the amount the government can print does it not? However during the 50s the FED printed a lot of money.

Sure, having a gold standard hypothetically limits the amount of money that a government can print.

as for the fed printing a lot of money, so fucking what? what are you trying to say?

In theory it limits the amount that the FED can print. The FED never gave a fuck tho, they could still print more money as long as they didn't do it in such large amounts to make everyone run to exchange their money.

has donald trump spoke about banking, at all?

>has donald trump spoke about banking, at all?
Not that I can remember, but the republican party added a plank to the platform that advocated the return of Glass-Steagall, which would require the breakup of the biggest banks.

I don't think presidents or PM's even pretend to influence international banking anymore, what they fear most is a collapse on their watch. However many, like our current PM and his father, quick to spend.

A currency is just what the people put their faith in, gold will always be there but we are also in the plastic and oil age. The US dollar is backed by a massive aggressive war machine that runs on oil and a few hundred million plastic people with their plastic cards. Many people don't even know cash only makes up only a few percent of any modern monetary system, the rest is credit and debt. People put their faith in a populations ability to keep paying their debt off really. When things get scary they horde real gold and fire up the war machines...every fucking time.

yea =\
i just wish there was more on the job training. it's like we can't afford that now. so we hire h1b /=