The Gold Standard Explained in One Minute
ฝัง
- เผยแพร่เมื่อ 24 ก.ย. 2024
- A one minute video about the monetary role of gold. As of 1971, the precious metal stopped having such a role altogether and it's interesting to analyze how and why that happened. Through this video, I did just that.
Please like, comment and subscribe if you've enjoyed the video. And, of course, a share on Facebook and/or Twitter would be highly appreciated. This channel is still in its infancy, so every bit of help counts.
To support the channel, give me a minute (see what I did there?) of your time by visiting OneMinuteEconomics.com and reading my message.
Bitcoin donations can be sent to 1AFYgM8Cmiiu5HjcXaP5aS1fEBJ5n3VDck and PayPal donations to oneminuteeconomics@gmail.com, any and all support is greatly appreciated!
Oh and I've also started playing around with Patreon, my link is:
/ oneminuteeconomics
Interested in reading a good book?
My first book, Wealth Management 2.0 (through which I do my best to help people manage their wealth properly, whether we're talking about someone who has a huge amount of money at his disposal or someone who is still living paycheck to paycheck), can be bought using the links below:
Amazon - www.amazon.com...
Barnes & Noble - www.barnesandno...
iBooks (Apple) - itun.es/us/wYS...
Kobo - store.kobobook...
My second book, the Wall Street Journal and USA Today bestseller The Age of Anomaly (through which I help people prepare for financial calamities and become more financially resilient in general), can be bought using the links below.
Amazon - www.amazon.com...
Barnes & Noble - www.barnesandn...
iBooks (Apple) - itunes.apple.c...
Kobo - www.kobo.com/w...
Last but not least, if you'd like to follow me on social media, use one of the links below:
/ oneminuteeconomics
/ andreipolgar
/ andrei-polgar-9a11a561
GiganticWebsites.com is a project through which I make it possible for people to build truly gigantic websites (thousands of articles each!) at ridiculously low prices. If you have a great domain you want to turn into an amazing website or an existing site you'd like to upgrade/scale, visit our website or check out the One Minute Economics presentation video below:
th-cam.com/video/gE8yEOQFMvo/w-d-xo.html
Please note that this comment is not an ad for a third-party service provider. GiganticWebsites.com is my baby 100% and I will personally be involved in each and every project so as to ensure the website turns out great :)
TY. I think people can clearly see how absurd the gold standard has been and why Fiat currency was the natural choice.
You can kiss all that “confidence” goodbye now. You will wake up in the near future as a techno-peasant peon. 🤦🏻♂️
😮
I never viewed metals as an investment, but I always saw it as a great way to save your cash & retain the value from when you bought it. It’s not hard to turn it to liquid cash, and it beats letting inflation destroy your savings.
You are in for a nasty surprise, my friend. Gold is often hailed as a hedge against inflation-increasing in value as the purchasing power of the dollar declines. However, government bonds are more secure and have shown to pay higher rates when inflation rises, and Treasury TIPS provide built-in inflation protection.
I think having an investment advisor is the way to go. I've been with one because I lack the expertise for the market. I made over $490K during the recent dip, highlighting that there's more to the market than we average folks know.
Hmmm this is quite interesting, Please can you leave the info of your investment advisor here? I’m in dire need for one.
“Sharon Lee Peoples” is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.
This is what adin failed to realise is that even just mentioning these topics on stream has us on here researching these important topics. W top g
Noticed several comments about this, don't consume entertainment content personally and haven't seen the video/stream you are referring to but no matter how you got here, welcome to One Minute Economics!
@@OneMinuteEconomicsWell, Andrew had a call with Adin and berated him for being an idiot for not knowing anything about these things. While his methods may be questionable, the results are that a lot of people are now learning this :)
Thanks andrew foe mentioning this!
People confidence? LOL, all the money in the world trades using banks with Swift codes like IP address and USA banks are the back bone of the systems like Internet with the uSA back bone. Hence the USA can see how much USD each country needs and what month a country needs dollars more than the other 11 months in a year.
hahah same here xd
In other words, today’s currency is based on feelings
... anything from feelings to armies :D
love makes the world go hoola hoop
@@OneMinuteEconomics Damn paper money backed by trusting a politician seeing how politicians always lie this just tells me how stupid people are.
@@jasonsoliva6678 That can said about almost any country
Facts
Dude I really want you to know that this video is LIFE CHANGING, a 1 minute video made something that people take months or years to understand. Thank you so much dude god bless you bro
Thank YOU for making my day with your comment Derek! :)
Ngl I remember when I was just getting into bullion purchasing and understanding how the treasury and fed reserve works, I spent fucking hours worth of researching just to make sense of parts of it, after finally understanding it all after like a year and a bit of delving into economics on and off I come across this one fucking video that is a basic summary of shit that I was spending forever trying to wrap my pea ass brain around lol
I don’t want confidence, I WANT MY SHINY ROCK!!!
:D
@@joedowning2428 the real pet rocks
Same
Still better than paper backed by politicians emotions.
Rothchilds want the confidence
here from adin stream 😭😭
My father told me that France and Japan suspected that USA printed more dollars than they told foreign central banks and used this paper to do big shopping in Europe and Japan: Real estate , factories , ships . . . To call the bluff ( or fraud ) France and Japan started sending shiploads of dollars to USA and ask for gold instead. It worked. In 1971 Nixon abolished the gold standard in America temporarily ( see his sermon "Nixon Bretton Woods" , here on TH-cam ) but politicians worldwide never regained control over their paper-money , worst example is Zimbabwe Dollar. The only reason that today in 2023 , dollars and euro have almost same value is that EU- and US-politicians are the same type of irresponsible spendthrifts if not outright corrupt . . . In 2022 the Greek vice-president Eva Kaili of the EU-parliament was arrested by Belgian police with a suitcase full of money she couldn't explain. From 2007 to 2015 Danske Bank whitewashed a trillion kroner ( 166 billion US-dollar ) for Russian gangsters , none of the bosses in the Copenhagen bank went to prison in Denmark. Today gold is merely the bad conscience of politicians: Over the last 20 years the price of gold rose by 428 percent , the last 5 years 44 percent. Now politicians are messing up things again in Ukraine and gold is climbing towards 2-thousand dollar per ounce.
Would recommend checking out my Bretton Woods video when you get a chance to:
th-cam.com/video/RtFz9q26t5A/w-d-xo.html
Someone predicted almost 20 years ago the price of gold would rise by 10x the price
If the price of things can rise as it has in Zimba. Then there's a chance the gold you need to purchase products would be equivalent to 100 years ago no change
Holy crap ,early people literally exchanged their gold for a paper that doesn't have value on the first place, then got convinced that the paper has the same value as a gold . And after the exchange it became valuable as a gold...
The system was not without benefits such as convenience-related ones. At the end of the day, it's hardly unlike humans to make compromises for the sake of convenience, heh
Yep
holy crap man this is a great one minute explainer video. i can understand this even quicker than it would take for me to read a 3 page wikipedia explanation
Really happy to hear that, thanks a LOT for the words of encouragement! :)
Here from adin ross stream, and just learning these type of things is interesting
Who’s here from Andrew Tate
L Adin
Me 😂
L adin
I had some knowledge in this but came for more
Me
thanks adin
Top G
Seems many people are watching this video as a result of the show in question, not sure about the details/context but hope you found the video useful!
@@OneMinuteEconomics Adin Ross and Andrew Tate did a stream together and Tate told everybody to look up the gold standard and your vid is the first one to pop up. So congrats
Not Adin he didn't really care it was Andrew Tate
Best explanation ever. 1 minute well spent.
Few things make me happier than reading comments like yours, thank you so much!
i don't have confidence in reptiles
what😂
💯
Same lier who over spend in Vietnam war & other coups.
France pulled Nixon's pant down.
Thank you so much! This really makes it easy to understand! This has really helped me understand the economy.
Really glad to hear that, thanks a lot for commenting :)
I'm all grown up now
This is complete and utter bullshit. Fiat money is privately adjusted standard of value that has no oversight and therefore is the worst system of commerce possible. It's not backed by competence. It's handled by the incompetent. That's the whole reason why a gold standard is better than this shit we have now.
Well did you buy gold after listening to this?
0:39 Australia uses the euro obv
:P
Overlooked that, I usually double and triple-check what the designer does... oops :)
Has something changed in this video? I couldn't find any reference to euros (which didn't exist while the gold standard existed in the USA).
The context of people being here is from Andrew Tate (im sure you know who he is) went on a stream by Adin Ross. Andrew told him to research topics such as The Gold Standard, The Bretton Woods System, Quantitative Easing and the current fiscal system. Sir
If you are interested in those topics, all of them have been covered through dedicated videos that can be found over at my Money & Banking playlist:
th-cam.com/play/PLhICud5IUwVimLuZK0Qfi6OzCB0CloH5J.html
The playlist contains 62 one-minute animations like this one, which tackle pretty much everything you need to know about money and the financial system.
@@OneMinuteEconomics Me personally I already know most of this stuff. I just wanted to give you context
@@jeoq Source: Trust me bro
@@georges9760 Was what I said not true?
The US dollar represents my confidence in the American government...I'm moving
Krunk Cobain goodbye and good luck on your search for greener pastures
I agree with you. those little paper sheets that are backed by precious metals are worth the value. I actually lived in the time where the dollar was backed by Gold, not the shit we have today that is printed without consequences and we the people are taxed to death on the interest that it will bare on the people to repay. As I see it, with our over spending government the currency we have today will soon SOON be worthless. Hope everyone invested in Silver and Gold coins over the years.
the point of gold is that you can't be scammed, but with fiat u can. lets say I work 8 hours a day for green pieces of paper and then for whatever reason they just print up 10 trillion dollars then I pretty much just wasted my time because I got something for all that work that has no (or less) value. Now imagine this happening between countries where one country sells real products to another country that just prints up all the money with 0 effort. Doesn't make sense to me
Narrator: "The value of the dollar is tied to people's confidence in it."
Me: "Oh...Oh dear..."
:(
the world was successfully had in 1971, then a tale of how "unsuitable" for the modern economic needs the golden standard was was invented. bravo.
Do you believe a return to the gold standard would be practical at this point in time?
@@OneMinuteEconomicsyea but not only using gold, there is not enough gold, but there are other valuable materials goverments could use, like silver, uranium or even helium
This 1 min video made me understand what an entire book couldn't.
Really happy to hear you found the video useful, comments like yours always make my day :)
It's perfectly clear now. Thanks mate...
Lol not really
www.philosophicaleconomics.com/2014/07/goldstandard/
One criticism. Money isn’t backed by confidence. It’s backed by debt. The cash that circulates is basically notes of credit (similar to the credit in the term credit card) between the government and the central bank.
Tate putting me on
I love the blatant skip from 600 bc to 1944 Bretton Woods. Kinda skipped 3 millennia there.
:D
The Bretton Woods Agreement was headed by John Maynard Keynes. He was the idiot that mad the price of gold inflate because he said that the standard of value was adjuatable.
Top G
The reason Switzerland, France and other countries started buying gold had nothing to do with "no longer trusting the US dollar". They were able to buy the US gold they were buying at the same $35/oz price that had been set in 1944. Gold was empirically worth more than $35/oz in 1971. After gold started trading without restrictions in the market the price went as high as $850/oz in 1980.
If there had been some sort of sensible market- based mechanism for adjusting the exchange rate things might have been very different. Instead, we ended up with schemes like the Gold Pool that tried to regulate the market to keep gold at the same price while everything else in the world was subject to inflation and got more and more expensive.
It ended up being yet another example of why price-fixing doesn't work.
Also didn't help US put tariffs on imports during the Nixon shock speech. Wouldnt be surprised if the other countries slapped on retaliatory tariffs on American goods. I know economics is fairly new, but come on. If someone slaps you, 9/10 they will slap you back. Dont take a genius to figure that out. Australia is kinda figuring that out now with China (not tariff for tariff, but t-t for tat)
No it showed why the gold standard doesn’t work
No it would have work if everyday people were able to redeem their dollars for gold meaning the fed would have to have the gold to back it up making it a true gold standard. Only reason it failed and why golds price “went” up is because after 1945 we went to a fractional reserve gold standard which meant only a certain percentage of dollars had to be backed up with gold and since everyday people couldn’t redeem for gold anymore and banks around the world had incentives to not spill the beans, the amount of dollars to gold was able to keep increasing without to much notice until 1971, when golds market price was higher than it’s fixed price meaning that the US had printed even more dollars than what the fractional reserve was supposed to be able to cover which is why the speculators speculated. A true gold standard works and has worked for thousands of years. This current system allows reckless behavior to go unpunished and even rewarded which wouldn’t be possible with real money.
So everyone is here from Adin Andrew stream? 😂
the reason for the return of confidence in dollar it's link with oil and if the oil-producing countries accept to sell it with non-dollar, the dollar would have fallen coz it does not have a balance of gold equivalent
That is one dimension, definitely an important one. There are however quite a few others involved and while the dollar is no longer backed by gold, it's backed by anything from the productive capacity of its citizens to the military strength of the US :)
Only video I watched on youtube that did not waste a second
I do my best haha, thanks a lot for the kind words!
Shout out to tate
One of the best videos ever
Glad you like it :)
POV : you are here because ANDREW TATE told you to watch this
Great job explaining a very important topic!
It lacks a few details, but it's really helpfull for someone just begging to learn about economy. thanks for making it 😊 👏
You care more than welcome Gabi, thanks for the kind words!
Where can I learn the whole about it?
@@prajilbhagat2254
Look up the 1944 Bretton Woods Agreement .
Basically :
After WWII , all nations met in a little town called Bretton Woods New Hampshire , USA .
Since 100% of fiat currency has FAILED for thousands of years , because whoever is given the privilege of “ world reserve currency “ status , has ALWAYS abused that privilege by “ money printing “ ; the USA promised the WORLD , that this wouldn’t happen , because for every $35.00 that was PRINTED , the US Mint would mint a 1 ounce gold bullion coin and deposit it into the Ft . Knox vault .
And a promise was made to ALL NATIONS GLOBALLY , if they choose to bring said US dollars BACK to the USA , they would be gladly exchanged for gold .
This worked WONDERFULLY for 27 years .
Then , of course , crooked bastard President Nixon was sending rocket ships to the moon , sending men to Vietnam , spending billions on that fiasco war , etc - France called the USA’s bluff , and requested physical gold .
So - since that President abused that privilege , by printing money , WITHOUT BACKING IT UP WITH GOLD AS PROMISED - he chose to tell the world , “ I told the treasury secretary to temporarily suspend the convertibility from dollars to gold to “ defend the dollar “ .
But all he did was to try to cover up his scandal .
The countries that all met in 1944 , were SO impressed that the USA was going to be transparent and add the required 1 ounce of bullion to the vault for every $35.00 printed ; they all in turn , agreed to peg their country’s fiat money to the US dollar , as it was ( supposedly ) pegged to gold !
A PERFECT system , without one particular event !
The countries SHOULD HAVE INSISTED UPON AN ANNUAL FT . KNOX VAULT AUDIT !!!!!
Bam !
The rest is history , the fiat system has been broken since August 15, 1971 .
Go watch the 5 minute U - Tube video !
Peace ☮️
This why I just paid $20 for a meal for 1 at the take out spot?
Your videos are the BEST !!!!!!!!!!!!
As weird as it might sound, this is one of the reasons the social gap is growing rapidly since the late 40s!
Just one example: Money isnt backed by gold anymore so the state can just give you money that they printed to spend. This money is spend by you and the money goes to rich people who own the companies. They now have an incredibly high income flow in times when they shouldnt. They cant keep it, because inflation is gonna hit, so they invest.
It enables Keynesian economics. They never work in the long run, a supply-based economy would be better, but politicians want to be voted and the rich want their money!
The main problem I see with this perspective is the fact that the state, historically speaking, has pretty much always proven to be quite creative with respect to acting irresponsibly. Even on the gold standard :)
@@OneMinuteEconomics yes I do agree with you, but Keynesian economics are very bad for us and pretty much all western states do it now!
I wouldn't be quick to paint the collective West as suffering immensely, even if polarization tends to lead us to such conclusions. What alternative to Keynesianism do you envision and why?
inequality fell since the fold standard was abandoned
So it's basically a scam
I could definitely formulate coherent arguments in both directions. Suffice it to say it's a topic people should learn at least a thing or two about
tate
Thank You kind Sir
Fiat currency is the worst thing in economic history.
Yamayamauchiman gonna prove that?
Well, since the roman empire introduced a fiat currency, the value of it dropped by 99.9% and eventually led to their fall.
Bitcoin will become the main currency of the world sooner or later...
WHY?!
Well, for one, it has a max supply. That's at least one HUGE step.
Suppose you can also say that it's the money of the internet because it's decentralized and doesn't matter where you are in the world to send it. Money of the internet, and everything is on the internet (more and more these days) so yeah.
Nice, well elaborated, argued and reasoned statement you’ve got here.
@@TehObLiVioUs So what will your net worth be in a world without electricity, that is payed for with fake currency?
I just learned so much in 1 min 30 secs
Few things make me happier than reading such comments, thank you :)
You forgot to mention that now they can just print as much money as they want raising the prices of goods and services and giving the state the ability to buy whatever it wants.
Guys Adin is a complete clown TOP G literally came with a white board to explain imp sh*t but Adin never fails to dissapoint him
W TOP G
The value in this video is insane. Andrew about to have a 7 year old video hit a million views just from yelling at Adin L.
Glad you like the video! It has indeed been receiving a lot more traffic than usual over the past week or so, but only about 10k views or so. The overwheming majority of this video's traffic has been "collected" over those 7 years gradually, most of my videos receive traffic this way. Kind of the opposite compared to streamers and vlog-style channels, where videos receive a lot of traffic initially and then usually stop receiving traffic.
I honestly want a return to the gold standard.What about you?We can use old gold as to make sure we don't run out of gold reserves.
Not sure a GS would be feasible at this point in time, perhaps something involving a basket of commodities with gold included would be a better fit :)
establish sharia law.
you'll get your gold standard because sharia law must be based on real thing/gold.
back to use dinars/gold coins as payment.
it is widely accepted because everyone love gold no matter what it shape, tho coin shape make it more practical.
it's a bit impractical but when zombie apocalypse and global blackout happened you can buy toilet paper with gold coins, not with crypto.
and yeah, i sold all my bitcoin and keep some of etherium before etherium skyrocketing.
global black out soon will happen.
the last person who cashed out their crypto / has the real money aka gold before it happen will live like a king.
global blackout = no internet for eternity
guess who will cash out their cryptocurrencies and pull the plug? it's the same "them".
banking system has that covered, with mountains of paperback print out of transaction history in some remote area warehouses stashed for 30 years.
it will take a lot of time just to settle a transaction after just a day of total blackout but at least you have paper printed evidence.
crypto doesn't have that.
i worked in treasury and custody department in the bank.
i keep some gold reserve my own in the form of coins/dinars.
when zombie apocalypse happen i can trade gold coins with some toilet papers, i can't do that with a printed paper or cryptocurrency.
people love gold, even when it's the end of time people will still love gold and there is always this urge of need to have it.
I don't know about everyone else but in a zombie apocalypse scenario, you could offer me your gold in exchange for my food for example... but I'd politely refuse :)
@@OneMinuteEconomics nah, you will take it and give me your extra food.
of course you wont give me your food if it's your last food you won't trade it for anything else.
even in zombie apocalypse people still need a form of "money".
because barter is impractical.
and in no government world, gold is a widely accepted form of payment.
people may not believe in government but people still subconsciously believe in gold.
I went with the (I believe correct) assumption that in a zombie apocalypse scenario, extra food would be hard to come by :) The main idea I am getting across is that in a true worst case scenario (Wild West on steroids), gold wouldn't shine, so to speak. Once the dust settles and we start getting a semblance of civilization back again, that would change and gold could indeed facilitate the transition to a new normal
My father told me that France and Japan suspected that USA printed more dollars than they told foreign central banks and used this paper to do big shopping in Europe and Japan: Real estate , factories , ships . . . To call the bluff ( or fraud ) France and Japan started sending shiploads of dollars to USA and ask for gold instead. It worked. In 1971 Nixon abolished the gold standard in America temporarily ( see his sermon "Nixon Bretton Woods" , here on TH-cam ) but politicians worldwide never regained control over their paper-money , worst example is Zimbabwe Dollar. The only reason that today in 2023 , dollars and euro have almost same value is that EU- and US-politicians are the same type of irresponsible spendthrifts if not outright corrupt . . . In 2022 the Greek vice-president Eva Kaili of the EU-parliament was arrested by Belgian police with a suitcase full of money she couldn't explain. From 2007 to 2015 Danske Bank whitewashed a trillion kroner ( 166 billion US-dollar ) for Russian gangsters , none of the bosses in the Copenhagen bank went to prison in Denmark. Today gold is merely the bad conscience of politicians: Over the last 20 years the price of gold rose by 428 percent , the last 5 years 44 percent. Now politicians are messing up things again in Ukraine and gold is climbing towards 2-thousand dollar per ounce.
But I don’t understand that. If money falls, gold should fall also, right? There is nothing separating gold from money save for that gold is heavier and is used in electronics
Nicely explained.
“Erm, achully this video is 1 minutes and 30 SECONDS!☝️🤓”
Gold's value is backed up by nothing but confidence either. What makes Gold valuable? Because it's rare? What makes rarity valuable? Because we said so? All value is subjective.
Therefore, paper being backed up by nothing tangible isn't really that concerning. As long as we all agree it has value, then it has value.... Just like gold.
Not true 100%. Gold coins been around over 8,000 same with silver and there alloys
The Philosopher's Stone. In 1980, gold was successfully made by a team of scientists at the Lawrence Berkeley National Laboratory in Berkeley, California.
Nuclear chemists Glenn T. Seaborg, David J.
Morrissey and Walter D. Loveland used a high energy nuclear particle accelerator known as the Bevalac which transformed the metal bismuth into gold. The process is known as
"Chrysopoeia".
Your channel is very good, I recommend your channel in my last video to my brazilian subscribers.
Truly appreciate the support Gabriel! :)
I await the day when Schmeckles become the world standard
:D
Here cause of Andrew Tate
Money is a social construct - Gary Gensler
:)
Gary Gensler is a Keynesian Democrat.
Language is a social construct
PLease, do a one minute lesson on the Global Currency Reset!
Hi i come to you from the Future 2020 the Global Currency Reset is currently happening.
@@fannywayne1920 Well tell me this, Future Girl - WHO is the President of the United States in 2020???
@@LeoFreemanAUST You won't believe i tell you :'( ... TRUMP!
@@fannywayne1920 TRUMP?!!? The Actor? :-o
Right now it is backed by Confidence in Military,
Which is not exactly "nothing" as many state, as we are unfortunately finding out nowadays :(
0:39 Australia doesn’t use the Euro
Basically, these are votes of confidence. But, by whom?
Soooo, they were like"damn this real thing.....we run on thoughts and prayers now"
we should go back to the gold standard.
videakias3000 oh we are... real soon
@@jaybasedd This guy gets it
@@hopperj6 WWG1WGA
its called bitcoin
I call rice standard. Cant eat gold. So more intrinsically valuable.
Greetings I must respectfully disagree. Please consider reading the following.
On June 5, 1933, the United States went off the gold standard, a monetary system in which currency is backed by gold, when Congress enacted a joint resolution nullifying the right of creditors to demand payment in gold. The United States had been on a gold standard since 1879, except for an embargo on gold exports during World War I, but bank failures during the Great Depression of the 1930s frightened the public into hoarding gold, making the policy untenable.
Soon after taking office in March 1933, President Roosevelt declared a nationwide bank moratorium in order to prevent a run on the banks by consumers lacking confidence in the economy. He also forbade banks to pay out gold or to export it. According to Keynesian economic theory, one of the best ways to fight off an economic downturn is to inflate the money supply. And increasing the amount of gold held by the Federal Reserve would in turn increase its power to inflate the money supply. Facing similar pressures, Britain had dropped the gold standard in 1931, and Roosevelt had taken note.
On April 5, 1933, Roosevelt ordered all gold coins and gold certificates in denominations of more than $100 turned in for other money. It required all persons to deliver all gold coin, gold bullion and gold certificates owned by them to the Federal Reserve by May 1 for the set price of $20.67 per ounce. By May 10, the government had taken in $300 million of gold coin and $470 million of gold certificates. Two months later, a joint resolution of Congress abrogated the gold clauses in many public and private obligations that required the debtor to repay the creditor in gold dollars of the same weight and fineness as those borrowed. In 1934, the government price of gold was increased to $35 per ounce, effectively increasing the gold on the Federal Reserve’s balance sheets by 69 percent. This increase in assets allowed the Federal Reserve to further inflate the money supply.
The government held the $35 per ounce price until August 15, 1971, when President Richard Nixon announced that the United States would no longer convert dollars to gold at a fixed value, thus completely abandoning the gold standard. In 1974, President Gerald Ford signed legislation that permitted Americans again to own gold bullion.
Source: history.com/this-day-in-history/
Trust me bro.
"silently prints even more fiat"
:D
Is Gold coming fom South America different from gold in Amerca or do gold not lose value???
Gosh, seems awfully risky to have paper money's value be supported by faith alone. What happens when that faith ends?
To be fair, let's just say currencies are indirectly supported by a wide range of factors, anything from the military strength of the nation in question to quite a few wealth forms (natural resources, businesses, etc.) :)
See a currency counsellor or a money priest.
@@OneMinuteEconomics Their are many powerful militaries so thats a ridiculous to trust military strength .
But being supported by gold is literally the same thing. It’s a precious metal, yes, but it’s not a very awesome metal. It is used in computers, yes, but it’s not like aluminum and copper which have a variety of used even if the electronic industry collapses for whatever reason
@@underdogtv2855 That's why they need to create enemy that " threatening world peace "
There is one HUGE lie in this explanation. Fiat currencies are NOT backed by confidence. Fiat currencies are back by the LABOR of the people. This why government creates jobs.
The government BORROWS the currencies from the central bank and the COLLATERAL are the birth certificates. This is why the people pay taxes to pay back the loans and the interest.
The taxes pay the interest because more money is constantly being borrowed which means the principle loans are NEVER paid back.
This is why the CBDC'S are being introduced because eventually the government will DEFAULT on the loans and the taxpayers become the property of the bank.
This is how LEGALIZED slavery will be re-established in the US and the world. Welcome to the NWO.
Hears a tip from the Lizard King - the future's uncertain and the end is always near. Roll, baby.... roll.
Explained very well, thank you!!
Thanks a lot for the kind words :)
@@OneMinuteEconomics your welcome, thank you for the video!!
BRO THANK YOU❤
You are more than welcome, thank YOU for the kind words :)
here from bald man vs L adin. I wanna keep looking into this a bit.
If wages were paid in a specific amount of gold without any raise in that amount, wouldn't that stop inflation? What you can exchange for 10 grams of gold today would not change to a lower value even if that same 10 grams of gold would be used in a 100 years.
I would really appreciate an economists take on this.
I friends it's me Prasad 😁
Great work
Thanks a lot Karthik :)
thats when the corruption was born..it will collapsed anyway and we will suffer ..thanks to the intelligent president
Corruption has been around for quite a bit longer than that :)
The gold standard is a HONEST money system and that's why it is hated by bankers
since when does australia use the euro??
it is backed by trust me bro
Hey, bro code backing is better than no backing :P
F Adin Ross W Andrew
Are we casually ignore that Australia has an Euro sign for its currency?
He's American, he doesn't know any better
It doesn't have to be gold. Silver, copper or anything do just fine. As long as it's not paper monopoly money.
Gold, Silver, and Copper are just metallic forms of paper monopoly money. Their value is entirely based on how valuable people think they are, and how useful they are for people.
So just to be clear. Since 1971 money doesn’t have a back up (a value) as it did before. Because money is printed by the amount of gold their was. But if that is not the case anymore. Then money has no value anymore right? So there can not be a inflation? Correct me if i’m wrong i dont know if understand it.
Very tricky issue to tackle because while the let's say dollar is indeed no longer backed by gold, it's difficult to state it isn't backed by anything because a valid case can be made that it's backed by the military might of the US and the geopolitical influence it brings about, by the confidence people have in the idea that the dollar system is the lesser of all evils and so on :)
At the end of the day, no matter what kind of a monetary system we are talking about, "confidence" is the operative word. Even if currencies are backed by gold, they can become worthless if people were to lose confidence in gold and decide it's no longer desirable, the market ultimately decides in one way or another.
I dislike it when people say, “Money only has value because we all believe that it does,” because that simply is not true. You can believe anything you want (that money has value or that it does not have value), but that doesn’t change the fact that it has real value that everyone understands and agrees on-and the amount of money that each bill is worth is printed in ink on it’s pretty little face (well, technically-speaking, it’s printed on all 8 corners of its double-sided, horizontally-shaped body if we’re talking about U.S. currency) 😁
I don't think people disagree with respect to the amount written on said pieces of paper, in other words ten dollars means ten dollars and twenty dollars means twenty dollars... I believe we can all agree on that. The tricky question, however, is this: what can you buy with said ten or twenty dollars? If everyone agreed, consumer prices and prices in general would no longer fluctuate. No deflation, no inflation. Just plain old stagnation. Needless to say, prices don't exactly tend to behave in such a dull manner :)
Can people agree that money pretty much always has some value that's greater than zero?
Sure.
But how much value? That's when the debate gets heated.
Why limit the economy to the scarcity of gold? Much better to just print the money needed by the country I think.
Jerome and Janet approve :)
Is gold coming from the east differnt from the west or do gold not lose value?????
Because why should people & politicians be held accountable for their handling of money!
What if they promise to be responsible? :D
Devaluation of your fiat notes = 80% of your wealth goes straight in to the bankers fat accounts in just two decades!
Your income Taxing milking is the annual wave that is reaping you as you go.
Its called SWINDLING Science or In Bank we trust.
Nick Sofialakis [citation needed]
We have had the Petroleum dollar ever since 1971.
Among other things, yep, the oil dimension is indeed important. There are a wide range of other factors at play as well though, from pragmatic ones such as the military dimension to market psychology-related factors such as confidence in the future of the US. Petroleum dollar? Sure. Military dollar? Yep. Confidence-backed dollar? Once again, yes, and the list could go on and on :)
could you do a 1 minute on trickle down economics ?? thanks :D
Will do my best :)
Hugo Nongbri Here's something:
Ideally: Tax cuts lead to an increase in corporate profits. This financial benefit for corporations leads to (I.e. "trickles down" to) financial benefits for the poor (e.g. the creation of jobs!)
Reality: Tax cuts lead to an increase in corporate profits. The corporations could use their financial gain to benefit the poor, but they also consider using it to benefit themselves even further instead (e.g. spending on automation instead of job creation).
Hugo Nongbri In just a few seconds:
An excuse to help rich people to become even more rich.
Nathan Payne Thats Keynesianism. Inflation helps the rich
A politician here in NZ described 'trickle down economics' as the rich peeing on the poor.
Gold is also backed by confidence that it will mean something to people... in the end its just a yellow metal... so its kind the same now and then.
Fair point, it's remarkable how "confidence" seems to pretty much always be the common denominator
Not really. Gold is a REAL material that can be stored. You know how much of it is out there. You cannot print gold.
WRONG. Gold has multifaceted uses and does not oxidize over time which is why it's a precious metal. It's used in processors and other electronics as well as reflectors because of how stable it is. It is a working metal. It's a limited commodity item which is the reason why it makes sense.
Gold is used in space telescope, astronaut suit, all kinds of electronics, chips, etc.
It's non corrosive
what software have you used for animations?
“Backed By Confidence” lmao insane.
A++ confidence, would believe in again :P
All the world's economies should be based on gold or at least some valuable materials
Australia doesn't use euros plus that's the wrong flag of the us
But but but if there isn't enough gold to match the money it just wooontttt workkkkk waaaaaaa
An oversimplified way but yeah thats exactly it
Why did france start buying gold? And why did nixon cared?
After World War 2, the United States ended up having 2/3 of the world's gold reserves.
Therefore, to facilitate trade, the US Dollar became the world's reserve currency and all of the other currencies were pegged to it.
At that point, the Dollar was pegged to gold and therefore, all of the other currencies were *indirectly* pegged to gold :)
As mentioned in the video, the "pure" gold standard involved average citizens being allowed to exchange paper money to gold whenever they pleased. That was no longer the case after WW2, when the United States only allowed the central banks of other countries to exchange USD to gold. Average individuals didn't have this privilege.
Well, time went by and the United States started printing more and more money to fund various projects such as Lyndon Johnson's Great Society and even wars such as the one in Vietnam. The result? Obviously, there was more and more paper money in circulation and other countries such as France started to be worried.
Therefore, these countries started asking the United States to give them gold in exchange for their paper money. The United States honored these requests initially but its gold reserves kept shrinking dramatically and as a result, Nixon ended up deciding to take the United States and thereby the world off whatever was left of the gold standard in 1971.
So countries like france were worried about the value of the dollar?
Also, why was the US worried about having less gold?
Yep, exactly.
Other countries were worried because as more and more money was printed, the USD became less and less backed by gold.
At that point, it was strange to think about a currency backed by "nothing" like what we have today, so countries like France decided they'd be better off getting rid of their USD and receiving gold instead.
Other countries followed suit and that exacerbated the problem.
Why?
Well, because money continued to be printed on the one hand and on the other hand, the gold reserves of the United States kept going down due to central banks demanding gold.
Nixon ultimately decided that he was no longer willing to let gold leave the US like that and his decision marked the end of the gold standard.
@@OneMinuteEconomics thank youu
@@OneMinuteEconomics gold is real money, today we use fake money, isn"t it ?
Interesting. I always thought currencies are backed by gold, but from what i understood they aren’t? Fiat money is backed by confidence in your country and society?