On Aug 27, 2012, at 4:20 PM, Anthony wrote:
AnthonyWhen the US was on the gold standard, pre 1913, how did the treasury know how much money to mint and put in circulation?
The error is thinking much of any gold was actually in circulation... go to a coin store and see all of the notes, private banks notes relating to the gold held by private banks at other places...warehouse receipts.
It did not matter how much they minted or not, as Spooner notes all mined gold is first minted into coins, and if it is not in demand it is melted down and turned into "plate, decoration and jewelry." The idea that people commonly paid for things with gold is absurd. Silver, sure, but rarely gold.
Gold coins show up as actual payment in history only when the poo is truly hitting the fan, at which point, the gold does not do you much good anyway.
We are in this mess because, among other reasons, we went off the gold standard. Fractional reserve on credit is another.
But don't worry, the Government has 5 illegal bullets to use every USA citizen.
John
Feel free to forward this by email to three of your friends.
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