Are readers here aware that some states have recognized gold as legal tender for a very specific reason?:
23 US states move to reclaim gold and silver as legal tender
The shift is rooted in Article 1, Section 10 of the U.S Constitution, stating that “No State shall make any Thing but gold and silver Coin a Tender in Payment of Debts.”
The state laws declaring the shift of gold and silver currency would eliminate capital gains taxes on sales of gold and silver in states that accept the two metals as legal tender.
The article cited above explains in detail the reasoning behind this move. Anyone that has physical gold and silver may want to redeem it for spendable fiat money at some point in the future when/if hyperinflation occurs. The desire and reason for this lawful recognition is easy to see. If POG goes 10X or more at sometime in the future a ready media of exchange is needed, i.e. fiat currency. Everyone should realize at this point that inflation in reality is a hidden undeclared tax, disguised and explained away as a monetary failure resulting in devaluation of the currency, i.e. US dollar.
India has been an interesting focus of discussions on this and other threads for some time. Does anyone remember Why India wiped out 86% of its cash overnight?
On 8 November, Prime Minister Narendra Modi gave only four hours’ notice that virtually all the cash in the world’s seventh-largest economy would be effectively worthless.The Indian government likes to use the technical term “demonetization” to describe the move, which makes it sound rather dull. It isn’t. This is the economic equivalent of “shock and awe”.(India scraps 500 and 1,000 rupee bank notes overnight - BBC News)
The Indian government likes to use the technical term “demonetization” to describe the move, which makes it sound rather dull. It isn’t. This is the economic equivalent of “shock and awe”.
India’s demonetization was an experiment as explained in the citied article above. Could a similar move be declared to recall large denomination fiat currency to implement a CBDC? I certainly hope not, but is it a possibility? I think it would be extremely difficult to recall and reissue demonetized currency; But as part of an excuse for declaring an experimental guaranteed minimum income for some disadvantaged segment of society it may happen. Will there be an experiment to reform our means of exchange domestically? Could making BTC the equivalent of gold and exempt from capital gains tax as some states have done for gold and silver be a solution? I’d like to imagine that someday it could. It would be a welcome change for many cryptocurrency traders/miners and “stackers”. We do need simplified tax reforms implimented.
Back in March 2021 Fed Chairman said, “Bitcoin is lacking key ingredients that would make it a useful currency. As a result, the crypto currency is essentially more of a substitute for gold than the dollar, Fed Chairman Jerome Powell said Monday.” Of course that sentiment has changed since then as the FED and Treasury continues working on instituting CBCD.
In the link provided by CS a couple of interesting comments were made ( a couple of interesting excerpts) .
(BRICS Summit sees new role for the bloc in a changing world — MercoPress 1)
Strategic autonomy is important for India. As is friendship with the United States, the West more broadly, for both economic and strategic reasons.
(Ashok)What we need is a neutral Currency, which nobody controls. Gold was such a currency. But unfortunately it is too hard to move, which makes it practically useless for international commerce.
… Gold standard was basically paper gold.The only practical solution is Bitcoin. But that is too young and immature today to take up that mantle. It needs to grow and become more stable. It needs the stability of Gold, for which it needs at least 10x marketcap and preferably 100x marketcap.(anand srivastava)
Did anyone notice when I posted this back in January?
In August 1971, when the Bretton Woods agreement was abandoned, crude oil was priced at $3.56 a barrel and the market price for gold was $42.85. Converting this into ounces of gold per barrel gives us a value of 0.0831 ounces. Today, the gold price of oil is 0.0417 ounces per barrel, roughly half. In other words, using gold Glazyev can demonstrate that the true cost to OPEC+ of dollarisation has been to halve the value of their export revenues since the Bretton Woods agreement was suspended. By accepting a new trade settlement medium tied to gold, this US enforced erosion of oil values will cease. And to compensate for the loss of oil’s value from the ending of Bretton Woods, the gold price in dollars would have to be double that of today at over $3,800…
(Auryn/Medinah - 2023 1st Half General Discussion - #141 by easymillion)
CS had posted a link on FWIW - Focus on Global Economy mentioned earlier, and here’s another article discussing what CS had just commented on.
BRICS nations forge a path towards a gold-backed currency, challenging the US Dollar’s dominance
India is the only country that has not shown interest in the plans to launch a new currency.
According to Ms Vazquez
In her opinion the move suggests that the BRICS nations are actively engaging in the restructuring of the international financial system, seeking greater autonomy and influence.
It is clear there are global changes in the reserve currencies used in international trade. Will CBCD move forward with BRICS creating its own International Trading rival to the IMF? The political conflict between the forces of Globalization and National self interest is unavoidable as the move to dedollarization from BRICS countries moves forward.