Gold Standard Act

[Bono]

Section 1

Subsection 1

§1 The dollar consisting only of 0.00025 ounces of gold, shall be the standard unit of value, and all forms of money issued or coined by Atlasia shall be maintained at a parity of value with this standard, and it shall be the duty of the Secretary of the Treasury to maintain such parity.

§2 Dollar bills, when presented to the Treasury for redemption, shall be redeemed in gold coin of the standard fixed in the 1st paragraph,  subsection 1, section 1 of this Act.

§3 In order to secure the prompt and certain redemption of
such bills, the Department of Treasure shall posses the amount of gold necessary to redeem all of the money supply in circulation.

Subsection 2

§1 The Federal Reserve is given a 2 months period, starting from the signing of this act unto law, where it shall not increase the money suply, and will accquire all the gold needed for backing of the current money supply, selling it's reserves of foreign currency, and pay all its debt and bank demand deposits. This shall be paid in promissory bills on the Department of Treasure, due 3 months after the signing of this act unto law.

§2 After that period, the Federal Reserve System shall be closed perpetually, and the gold in its possession shall become possession of the Department of Treasure, which shall keep it in the terms of paragraphs 2 and 3, of subsection 1, section 1 of this act.

§3 Paragraph one, of subsection 1, section 1 of this act shall become effective after the 2 month period mentioned on paragraph 1, of subsection 2, section 1 of this act.

§4 The regulatory powers of the Federal Reserve over banks shall be transfered to the Department of Treasure.

Section 2

§1 Fractional reserve banking shall be illegal throughout Atlasia.

§2 Banks shall have one month after the gold value of the dollar becoming effective to regularize their situation to compliance of the terms of this act.

[Bono]

You silly libertarians.

There is no need to go back to that nonsense. P:

I suppose Hayek, Milton Friedman, von Mises, Rothbard, among others, are all "silly".

Here's two papers on teh thing:
The ase for a Genuine Gold Dollar, by Murray Rothbard

Gold and Economic Freedom, by Alan Greenspan

Keep in mind Greenspan never recanted any of the views stated on that paper.

[Bono]

Just an opinion, but it might be safer to back the dollar with silver and platinum as well as gold.

Rothbard was against bimetallism. His reasons here.

[Bono]

1. I am against returning to the gold standard for a vast number of reasons, both technical and economic.
2.  I am even more strongly against bimetallism.
3.  How much of a windfall are you hoping to gain from the gold you own if you succeed in having gold valued at $4000 per ounce? (Approximately 10 times its current value.)
4.  Which ounce? troy (480 grain) or avoirdupois (437.5 grain)?

In which ounce is the gold valued in the market palce? IF it is troy, than that one.
The gold needs to be valued at $4000 becaus that is the value needed to pay all federal reserve debt and bank demand deposits., and consistent with the current money supply.

[Bono]

I propose that, instead of gold, a 'commodities  basket' be used including such items as Silver, Platinum, diamonds, crude oil, pork bellies, and yes, Gold. This will give the dollar more stability than either Gold alone or the current morass of a system.

I also believe the dollar should be exchangeable for said commodities at a market rate.

Senators, are you listening?

How do you propose to reddem someone with pork bellies?
No, bimetallism and other forms of basket currencies are contreproductive, and allways backfire. I anyone had botehr to read the articles I linked, they would understand why gold alone is the only proper currency.

[Bono]

The money supply should not be controlled by random events.

You mean like it is now? It's much harder to inflate gold than to inflate pieces of paper, you know?

[Bono]

Bryan and Free Silver!

But seriously, is this really necessary?  We've been off the gold standard for a while and we're still truckin'.

Since 1913 we've been experiencing periodic recesions due to the federal reserve system inflating of the money suply. IF you call that "Still truckin'". than oppose me.

[Bono]

I wish to reduce my ignorace, (Back of the Senate: Good luck!) does this act make the currency literally gold, or is all currency in Atlasia merely back by Gold stored in the reserve and paper money, representing this gold continues to circulate?

Siege

I believe it is based on the old system of being backed by gold and not actually using gold for currency.

Yes. But if you wanted, you could go to the departmenf of treasure , give them your money, and they would give you the equivalent in gold.

[Bono]

Furthermore, the government might become corrupt with people trying to control the value of the greenback versus the gold dollar to their benefit.

You're so cute. Kodak moment.

[Bono]

Voting starts today.

[Bono]

Nay

It wasn't opened yet.

[Bono]

Yea

[Bono]

I would ask that my Senators vote Nay on this bill. I have seen how the Gold Standard would better suit Atlasia than the current system. Also, as I have said before, this bill does not say what will happen to key areas of the Federal Reserve if it is shut down, including check processing and where the gold currently in Federal Reserve Vaults will go. For those reasons I implore my Senators and the remaining Senators to vote Nay on this proposal.

By default it will go all to the department of treasure.
Please, dear collegaues, ignore the backstabber.

[Bono]

I would ask that my Senators vote Nay on this bill. I have seen how the Gold Standard would better suit Atlasia than the current system. Also, as I have said before, this bill does not say what will happen to key areas of the Federal Reserve if it is shut down, including check processing and where the gold currently in Federal Reserve Vaults will go. For those reasons I implore my Senators and the remaining Senators to vote Nay on this proposal.

By default it will go all to the department of treasure.
Please, dear collegaues, ignore the backstabber.

Backstabber? I have never liked this bill. Just because I don't agree with ever single one of your positions doesn't make me a backstabber.

You yourself said you think the gold-standard is the better than the current system. The currenct funtions of teh Fed belonged to the department of treasure before the Federal Reserve Act. Since this repeals the Federal Reserve Act by default, those funtions go back to the Department of Treasure. It must take a great  bitterness to implore the senators to vote nay on account of that.

[Bono]

I would ask that my Senators vote Nay on this bill. I have seen how the Gold Standard would better suit Atlasia than the current system.

[Bono]

I would ask that my Senators vote Nay on this bill. I have seen how the Gold Standard would better suit Atlasia than the current system.

Typo I meant haven't.

Now if that had been clear from teh beggining, I'd've never said any of that things. Now that I know that, I take back waht I said. Sorry.

[Bono]

Why is everyone so afraid of this? Geez.