OT: Amero Hint?

I watched a portion of Weekly Business Review or something like that this evening. They had three guests on there and asked different questions about the economy, how
to get it under control, suggestions to Mr. Obama, etc.
One guest, Allan xxxxxx (sorry, last name slips me) was asked how the economy would get over this recession and he replied that it would have to be with a different currency. Don't know if he referred to gold and silver or the Amero. I suspect it was a hint concerning the Amero or a Freudian slip. Either way, he assured us it won't be the dollar!
Comments? Especially from others who may have watched.
Al
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

Didn't watch but the only way to restore confidence in the currency is to make it convertible into a metal, usually gold. That is what Bretton Woods was all about. Unbacked paper currencies have been tried many times and always fail eventually.
Free men own guns - www(dot)geocities(dot)com/CapitolHill/5357/
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

If my data is correct world gold production (2007) was 47.5 Moz @ current prices about 38.6 billion dollars. Exxon total earnings (2007) was about 40.6 billion.
A bit of a short fall there. Cheers,
Bruce (bruceinbangkokatgmaildotcom)
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

\ No shortfall if gold is priced correctly, and eventually it will.
Free men own guns - www(dot)geocities(dot)com/CapitolHill/5357/
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

May the country with the biggest gold mines win! And that would be...South Africa. <g>
-- Ed Huntress
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
Ed Huntress wrote:

They're making progress....oh! That's right, he's from Kenya! ;-)
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
Is there wenough gold in the world to cover the current world economy?
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

Nope. And there never was. Between officially held monetary gold (around 30,000 tonnes -- a tonne being a metric ton, around 2200 lb) and estimates of gold held privately as jewelry, coins, etc. (up to 70,000 tonnes, depending on who's counting), the total value of gold in the world is just under $3 trillion at today's prices.
That's only a tiny fraction of what it would take to back the world's currencies. Calculating what it would take is a very iffy proposition, but some experts have calculated that the current "value" of gold, if it backed all currencies 100%, would be in the neighborhood of $14,000/ounce.
At that value, everyone would stop producing real goods and services and start digging holes in the ground.
-- Ed Huntress
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
snip-

Based on that forumula, I'm rich! You can address me as Mr.Vordos! <g>
Harold
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

But the truth is that what you have is a nice pile of shiny metal. d8-)
-- Ed Huntress
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

Well don't leave out silver, platinum, palladium rhodium and other metals. Factoring those in where would the price of gold be?
Wes
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
wrote:

I have no idea. There's a research project for you, Wes. <g>
-- Ed Huntress
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

But you are sooo much better at it ;)
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
wrote:

It would be complicated, because platinum-group metals today are priced much more on their utility value than gold is. There is high demand for platinum and the related family in industry and consumer products, much of it for catalytic converters, and their decorative uses, except as platings, may have declined.
So it would be hard to sort out -- far beyond anything either of us could do, I'm afraid. That's a postdoctorate type of project for someone with a PhD in economics.
-- Ed Huntress
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
wrote:

The demand for the platinum group metals has fallen drastically with the world economic crisis. Three months ago, or so, rhodium was selling for more than $10,000/ounce (no, that's not a typo). It is now right at $900. Platinum, which had gone over $2,000/ounce, is now $868. The auto industry was responsible, for the most part, in the run-up of prices. Strangely, while gold fell, it has recovered and is $816.30/ounce. Certainly down from the more than $1,000 it enjoyed previously, but still very strong as compared to the pt. group.
Strangely, it is known that platinum occurs at a rate only 10% that of the occurrence of gold, yet it has little more value. Gold has had a strangle hold on humans for a long time, and doesn't appear to be abating.
Harold
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
wrote:

Again, platinum group metals are priced largely on demand driven by utility value, and supply. That's a pretty normal product except that supply is so very tight and it's essential to making cars. When demand drops, the bottom drops out from under the price. That's exactly what economic theory and rational behavior would predict.

Mass hysteria. d8-)
-- Ed Huntress
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

snip-----
That, and the fact that gold is the only element that is commonly considered a metal, aside from copper, that isn't white in color. The fact that it does not degrade (tarnish) doesn't hurt the cause, either. It simply has many properties that are desirable----I can see why it has been revered for so long. Call it what you prefer, it is one substance that is still valuable to man. Sea shells fell out of favor long ago.
Harold
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

Oh, that adds two or three hundred dollars an ounce, right there. <g>

Another two hundred...

Not particularly. Man just *thinks* it is. It's too soft and heavy to be useful for anything structural. Maybe it would make good bullets.
It's interesting to think about what its price would be if it weren't for all of the nuttiness. Here's a guess: $100/pound.

But they were more sensible than gold. No Indians claimed that discarded seashells have "intrinsic value." Quahog shells make quaint ashtrays, however. They're very Jersey Shore chic, circa 1955. You just glue them to a piece of driftwood. Eat the clams first. d8-)
-- Ed Huntress
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
Richard wrote:

If there is not, its scarcity will make it all the more valuable.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
wrote:

==============Actually you don't need to have a dollar for dollar amount, just a law that limits the amount of paper money to a given multiple of the gold on hand. Any inflation automatically makes the gold more valuable and it is the redeemed, forcing the multiple amount of currency to be withdrawn from circulation.
Two problems: (1) When a credit contraction hits, the gold tends to be redeemed, forcing the removal of yet more currency from the system -- good to control inflation but a major contributing factor to the contraction of the US money supply and the great depression.
(2) In the current economy, most of the "money" does not exist beyond a computer entry. Any effort to move to a more honest base means that a few keystrokes can convert the capital to a more "user friendly" denomination.
The early economist Gresham developed a series of economic laws, one of which states "bad money drives out good money." He appears to have been largely correct. http://www.encyclopedia.com/doc/1G1-140306725.html http://www.knowledgerush.com/kr/encyclopedia/Gresham%27s_Law / http://www.columbia.edu/~ram15/grash.html
Gresham had several other insightful observations, frequently elevated to the status of laws.
What is striking is Gresham clearly stated these basic principals over 400 years ago, these have been proven for over 400 years in every economic system, and still the politicians ignore them, and are always in the position of sweeping s**t against the tide [and failing].
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

Polytechforum.com is a website by engineers for engineers. It is not affiliated with any of manufacturers or vendors discussed here. All logos and trade names are the property of their respective owners.