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Gypsy
Member since May 2012
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The Silver:Gold Ratio, 1687-2011

- Nathan Lewis - New World Economics

This article brings up several questions as to the "validity" of the statements made herein. Nathan, you state: ~ Silver was "demonetized" in the 1870s. This was apparently something that humans just did collectively. ~ In reality, silver was NOT demonetized until 1964: but the REAL point I'd like to make is: humans DID NOT - collectively - demonetize Silver. The REMOVAL of silver - demonetizing - from the monetary system was FORCED on humans by The FED and the US Treasury.

Going a little further with your tale, Nathan, I come to: ~ Because of the "demonetization of silver" in the 1870s, silver is not useful today as the basis of monetary systems, although it was in the past. You would end up with the same problems that China had in the 1870-1940 period. ~ My correction to those statements is, firstly, the amount of silver in the world is finite, while the amount of paper is infinite; meaning silver would ALWAYS be the better monetary standard. Secondly, the problem China had between 1870 and 1940 was an OPIUM problem; NOT a Monetary Silver problem. Yes, I know there was a Japanese Invasion problem, and a problem with the British being so offensive in that Boxer Rebellion thing, but laying the Chinese problems on Silver is a Great Disservice to the Truth of The Matter.

I could go on and on and on with the Gross Misinterpretation of Reality in this article, but I already have a job with PLENTY of work to do besides correct other's errors. Getting the oil changed in my tractor and getting those flats of bell peppers started has become important at this moment. Still, thanks for raising my blood pressure and stirring my imagination.

Commented 4047 days ago

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Beginning of the headline :We have something special this week: the open market value of silver, compared to gold, over a period of over three centuries. The location is London. For a long time, silver and gold were, in a sense, two versions of the same thing, just like one dollar bills and twenty dollar bills are today. Their ratio of value was not perfectly stable, like the 20:1 ratio of $1 bills and $20 bills, but it was quite stable between about 16:1 and 15:1. Both silver and gold ser... Read More

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