Ariel @Prolotario1

Feb 19, 2024 • 3 tweets • Prolotario1/status/1759567233129345259

15 Benefits Of Returning To The Gold Standard: The Citizen

1. Silver and gold hold intrinsic value that isn't subject to inflation like fiat currency. This
provides economic stability. Inflation has diluted the US dollar's purchasing power
substantially over the past century. In 1913 when the Federal Reserve was founded, $100
could buy what takes $2,500 today, an astonishing loss of value. Precious metals do not
inflate like this.

2. There would be less risk of hyperinflation destroying savings and purchasing power.
Venezuela suffered devastating hyperinflation with money losing all meaningful value,
wiping out years of savings. This is impossible with something like gold or silver maintaining
inherent worth.

3. Individuals would have more financial privacy without centralized digital money
monitoring all transactions. China's Social Credit System tracks all digital transactions giving
the state unprecedented access to monitor citizen spending. Using precious metals allows for
untracked exchange preserving privacy from authoritarian overreach.

4. Savings in precious metals preserve wealth better over the long term compared to fiat
currencies. Historical cases like Mansa Musa's 14th century West African empire growing
incredibly rich from massive gold holdings show it preserving vast wealth over centuries
compared to currencies that inevitably deflate.

5. Using silver and gold coins facilitates bartering and exchange without needing banks as
financial intermediaries. Cigarettes' emergence as black market currency in prison
demonstrates how physical commodity monies facilitate localized exchange without reliance
on financial intermediaries vulnerable to systemic failure.

6. Precious metals have industrial uses, unlike fiat which only has value as money due to
government decree. The fact that silver and gold have versatile industrial applications for
electronics, medical devices, solar panels etc. mean they will never lose all value and always
have some intrinsic utility even aside from being used as currency.

7. Hard money disciplines governments from endless money printing to fund deficits.
Ancient Lydia (in modern Turkey) was one of the first kingdoms to mint gold and silver
coins. As metal purity allowed for trust in the currency, enabling the empire to expand trade
reach and economic growth into neighboring regions.

8. Limited manipulability protects the economy from booms and busts in the business cycle.
After the US civil war, battles over bimetallism versus strict gold standard contributed to
business cycle instability from deflationary pressures that largely subsided once gold was
firmly codified at $20 per ounce backing the dollar.

9. Reduces the ability to wage prolonged wars since sound money limits military overreach.
16th century Spain amassed huge gold troves making them a dominant military superpower,
but they still eventually defaulted several times after overextending military budgets,
showing hard money constraints checking endless warfare.

10. Eliminates systematic banking bailouts that socialize losses while privatizing profits.
When unsound lending practices in the US savings and loan sector triggered crisis and
threatened industry collapse, taxpayers were forced to cover billions in bailouts protecting
firms while citizens bore job losses and economic pain.

11. May decrease income inequality since those closest to money creation won't be enriched
and those furthest won't be impoverished. During the classical gold standard era in the 19th
and early 20th centuries, wealth inequality levels were lower than today. This was partly
because middle and working classes' money maintained stable purchasing power, and their
savings were not devalued through inflation as happens today.

12. Limits dollar diplomacy whereby global trade works through one dominant fiat currency.
The Triffin dilemma refers to the problem of the US dollar acting as global reserve currency.
It requires the US run perpetual trade deficits to supply enough dollars for world demand,
which is unsustainable long-term. A gold or other commodity standard would remove this
dilemma and rebalance international trade.

13. Restricts the government's capacity to spy on and control citizen spending. When India
was part of the British empire, many Indians distrusted paper rupees issued by the British
and preferred holding gold and silver. This allowed them to exchange value privately without
relying as much on imperial monetary policies.

14. Silver has anti-microbial properties with medical use-cases that provide utility even if not
used as money. In World War 1, silver-containing antiseptics were crucial for treating
injuries when antibiotics had not yet been developed. This demonstrates silver's enduring
medical utility independent of its monetary role.

15. Precious metals have cultural affinity and psychological appeal that increases confidence
in money's stability. Gold and silver have culturally significant statuses, often associated with
royalty, luxury and wealth. This psychological attachment means they command belief in
their inherent value in a way fiat currencies struggle to.
Basel 3

Protocol 20

SOFR

ISO-20022

Comex 589

Basel 3

Function: A set of international regulatory standards developed by the Basel Committee on

Banking Supervision (BCBS) to strengthen the capital adequacy of banks and improve their
resilience during financial crises.

Impact: Basel III mandates banks to hold higher capital reserves, implement stricter
liquidity requirements, and conduct stress testing to ensure they can withstand potential
financial shocks.

Protocol 20

Function: A set of standards and guidelines established by the International Organization for
Standardization (ISO) for the global financial messaging service, SWIFT.

Impact: Protocol 20 ensures consistent formatting and data exchange between financial
institutions using the SWIFT network, facilitating efficient and secure communication.
SOFR

Function: A set of standards and guidelines established by the International Organization for
Standardization (ISO) for the global financial messaging service, SWIFT.

Impact: Protocol 20 ensures consistent formatting and data exchange between financial
institutions using the SWIFT network, facilitating efficient and secure communication.

ISO-20022

Function: An international standard developed by ISO for electronic data interchange (EDI)
in the financial industry.

Impact: ISO-20022 aims to improve the efficiency, accuracy, and transparency of financial
transactions by standardizing data formats and messaging protocols. It is being gradually
adopted by various financial institutions and market infrastructures.

Comex 589 Gold Contract

Function: A standardized futures contract traded on the COMEX division of the Chicago
Mercantile Exchange (CME).

Impact: This contract represents the delivery of 100 troy ounces of gold bullion at a future
date. It is a widely used instrument for hedging price risks and speculating on gold prices.
All of this officially starts once Iraq reinstate their currency on the Forex Market. That will be
the official starting gun.

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