Gold at $878/oz!!

[PirateAnneBonny]

Baron von Rothschild said, "The best time for gold is when there's blood in the streets."

Things must be getting bad! I think gold smells high inflation or, possibly, hyper-inflation in the wind. Despite the deflation in housing prices, we've got inflation raging everywhere and that means a slow and painful death as the devaluing of the dollar graduly impoverishes us.

I doubt the Plunge Protection Team really has many options. They can only rearrange the chairs on a sinking ship. They can't make people take out more loans when they're alread worried about how to pay their existing loans and worried about whethere or not they'll still have a job, they can't force people to make their payments, and then, when the homes get foreclosed, they can't make people buy all these homes.

I think we got a long way to go, maybe lasting 15 to 30 years, assuming the All Mighty Dollar eventually emerges and it hasn't been replaced by the Amero by then. I hope I'm wrong.

[Humbucker740]

This is paranoid and over reactive.

[PirateAnneBonny]

Perhaps it's better to be a pessimist than an optimist. An optimist could be proven horribly wrong and suffer from his lack of foresight. A pessimist is either proven correct and well prepared for what happens or he is proven wrong and is pleasantly surprised by the outcome.

[Humbucker740]

No one accused you of being pessimistic. I believe the word was paranoid. Even by your standards, could I not constantly foresee the end of the world and then be pleasantly surprised by its continuance?

[Senseisocks]

I disagree with you. You should more realistic than either looking on bright side or down side of the situtation at hand. Although, the prices of gold decreasing/increasing doesn't really qualify as my cup of tea. Gold seems to be a resource for materialistic possessions, for jewelry, etc., and currency. Food or water should be of more concern to you than gold is. And if gold becomes "extinct", there's other minerals to grind up, process, and melt into coins, or rings.

[PirateAnneBonny]

At 1/8/08 09:14 PM, Humbucker740 wrote: No one accused you of being pessimistic. I believe the word was paranoid. Even by your standards, could I not constantly foresee the end of the world and then be pleasantly surprised by its continuance?

I'd say that's a great way to live. Tragedy comes to us all if we live long enough. Whether we have to go for a time without an income becuase of a serious injury, loss of a job, or a national currency crisis, the basics are the same -- difficulty paying bills and getting necessities like groceries and gas. The only important difference is how long will it last?

So what's wrong with being a little paranoid and pessimistic? At least you'll be prepared for the worst while you hope for the best. Being foolish is expecting to live a long life without anything serious ever going wrong. Foolish is taking out large loans and never expecting the bills to come due. Do we have a nation of fools? It sure is beginning to look that way.

It's too early to say for certain whether or not I'm paranoid, or just pessimistic. Only time will tell.

[PirateAnneBonny]

At 1/8/08 09:40 PM, Senseisocks wrote: I disagree with you. You should more realistic than either looking on bright side or down side of the situtation at hand. Although, the prices of gold decreasing/increasing doesn't really qualify as my cup of tea. Gold seems to be a resource for materialistic possessions, for jewelry, etc., and currency. Food or water should be of more concern to you than gold is. And if gold becomes "extinct", there's other minerals to grind up, process, and melt into coins, or rings.

If gold could easily be replaced by water, then why do the central banks still store gold (albeit a lot less these days) and not water? How easy is it to get gold compared to water or corn or alluminum? You'e also forgotten how much industry and medicine use gold and silver. Gold and silver have properties that do not allow it to be easily replaced by other minerals. Think: what happens to iron when it gets too wet?

[PirateAnneBonny]

At 1/8/08 08:30 PM, Humbucker740 wrote: This is paranoid and over reactive.

Something else that occured to me: You say you're a libertarian, so why do you trust the government?

Our Constitution, which I know you want to protect, states that our money should be gold and silver, which it's not anymore because our government's a bunch of lying theives. Our Constitution states that Congress, alone, should have to power to regulate our currency, which they don't because those lying wimps gave the Federal Reserve the legal ability to counterfit. Now, our money has lost over 90% of it's value because of the whole pack of crooks. With the Federal Reserve and our government's notorious outright lies about our nation's budget and money supply, how can anyone know how bad our situation really is and how can those same crooks (politicians and bankers) be trusted with our currency anylonger?

If inflation is 10%, then they've just stolen 10% of your wealth. Can Congress be trusted to reign in spending? Not a chance. So how will our government get revenue? There's only two ways it can be done: raise taxes or deficit spend. Which would you prefer? Taxes: theft out in the open or Deficit spend: theft in secret. If you think our dollar won't lose anymore of it's value like it's been doing since 1913, then you clearly trust our politicians and bankers; a very un-libertarian attitude.

I don't trust them, which is why I like gold.

[Musician]

At 1/9/08 12:25 AM, PirateAnneBonny wrote: I don't trust them, which is why I like gold.

Paper? Gold? Silver?

They're all equally worthless really. What does it matter what our currency is made out of?

[PirateAnneBonny]

At 1/9/08 12:30 AM, Musician wrote:

At 1/9/08 12:25 AM, PirateAnneBonny wrote: I don't trust them, which is why I like gold.

Paper? Gold? Silver?

They're all equally worthless really. What does it matter what our currency is made out of?

Ah, spoken like a true acolyte of the public school system. Do you live in Zimbabwe? Tell you what, you can trade in your worthless American dollars for some gold and then I'll trade you a basket of Zimbabwen currency for your equally worthless gold. Sounds fair..........what do you say?

[Gunter45]

At 1/9/08 12:45 AM, PirateAnneBonny wrote: Ah, spoken like a true acolyte of the public school system. Do you live in Zimbabwe? Tell you what, you can trade in your worthless American dollars for some gold and then I'll trade you a basket of Zimbabwen currency for your equally worthless gold. Sounds fair..........what do you say?

Try to trade a desperately starving man in the wilderness a gold bar for his last remaining food.

It's all relative. You could just as easily say "trading me coal for gold is the same as trading me diamonds for gold, since they're both carbon, LOL." Yeah, there's no physical backing for fiat money. I agree that it's a problem since it's exceptionally volatile, but to say it's worthless? That's absolutely ridiculous and it shows that you know absolutely nothing about economics, even though you're swaggering like you're some kind of big shot.

[PirateAnneBonny]

Yeah, there's no physical backing for fiat money. I agree that it's a problem since it's exceptionally volatile, but to say it's worthless? That's absolutely ridiculous and it shows that you know absolutely nothing about economics, even though you're swaggering like you're some kind of big shot.

The only value of fiat money is the promises behind it. What value is the promises of politicians and of bankers? I'd say less than nothing and EVERYTHING revertes to the mean. What goes up must come down. It has always been so... The fate of the American Dollar? T'will be the same fate as the all the rest. It was once said, "Don't take any wooden nickels." and "Not worth a Continental." These were once currencies.....Same with the Confederate Dollar. History is full of currencies that bit the dust when they lost their gold-backing... Ah, strangely enough, even with the Roman Empire gone, a Roman gold dinar is still valuable, Hmm, I wonder why....

BTW, if I'm starving in the woods, give me that gold bar and I'll eat worms and flies and moss and find my way out of the woods and be rich, rich, RICH!!!!! Hehehe!

[Maxben]

Historically, when the economy was bad, people would put their money in gold as it was expected to be the item with a value that does not change much.

Therefore, the fear of gold doing better than the DOW is that it means rich people are investing in the material good for safety rather than in virtual money that they fear they may loose.

So, when demand for gold increases, the fear is always that the rich know something you don't and that recession is on the horizon.

At least that is what I remember from Grade 10 business. But that was long ago, so i might have remembered it wrong.

[Gunter45]

At 1/9/08 01:40 AM, PirateAnneBonny wrote: The only value of fiat money is the promises behind it. What value is the promises of politicians and of bankers? I'd say less than nothing and EVERYTHING revertes to the mean. What goes up must come down. It has always been so... The fate of the American Dollar? T'will be the same fate as the all the rest. It was once said, "Don't take any wooden nickels." and "Not worth a Continental." These were once currencies.....Same with the Confederate Dollar. History is full of currencies that bit the dust when they lost their gold-backing... Ah, strangely enough, even with the Roman Empire gone, a Roman gold dinar is still valuable, Hmm, I wonder why....

Confederate money is still valuable, too. Want to know why anything is still or ever has been valuable? I'll give you a special secret that you're not allowed to tell anyone...

...it's all about demand.

OH SHIT! You mean that demand for the dollar is what keeps its value? Well that's totally different than gold, who's value is totally dependant on... oh right, demand for gold. The value of ANYTHING is based on the demand for it. What use do you have for gold? You're not buying it for its conductivity, malleability, or it's ductility; you're buying it for the fact that it's valuable. Valuability is based on one factor and one factor alone, have you guessed it yet? OMIGAWD! IT'S DEMAND!

Therefore, investing in dollars is doing the EXACT same thing, investing based on how you project the demand will fluctuate. Dollars aren't as dependable, sure, but the volatility of them give them tremendous earning potential in an investment. You'll never get rich by investing in the sure thing, risks are where fortunes are made. Of course, I wouldn't expect you to understand that, you still need to figure out what makes something valuable. Give it time, everyone learns at their own pace.

BTW, if I'm starving in the woods, give me that gold bar and I'll eat worms and flies and moss and find my way out of the woods and be rich, rich, RICH!!!!! Hehehe!

Something told me you'd go that route. Namely your mental deficiencies.

[PirateAnneBonny]

Let's clarify "demand": Present demand vs. Future demand

Sure the dollar fluctuates daily, but gold is steady over centuries. How long can the status quo continue? How long before the Chinese economy really takes off? How long before America's payments on it's national debt and it's obligations to fund Medicare and Social Security still remain affordable? There has never been anything more destructive to economies than the horror of expodential interest payments! How long will OPEC foolishly continue pricing oil in the dropping dollar? How long before the next terrorist attack harms America's economy? You don't know...no one knows...but it will happen....it's just a matter of WHEN! Do you think these things will magically improve on their own?

When the rich start buying gold, pay close attention. The smart money always moves first. It's always the shorts who get caught holding something worthless.

On July 16, 1999 the DJIA was 11,160 and gold traded for $254 with a ratio of the difference at 44 to 1.
Now the DJIA is 12,607 (and falling) and gold is $880 (and rising) with a ratio of 14.3 to 1 (narrowing).
Which has been the better investment for these 8 years-- stocks or gold?

[PirateAnneBonny]

Another note on demand: Sure Confederate paper money still has some value, but only to collectors and only during times of peace and abundance. It won't have any value to anyone in a crisis.

There is a story of a wealthyJewish family who wanted to escape German. His wealth was in the form of platinum so he had all his coins and bars melted down into tools and that is how he smuggled his money out of Germany. The Nazis weren't paying attention to a guy with a shiny hammer and wrench set.

There are other stories of people buring their Weimar German marks, because wood was worth more than their money. One woman set down a basked of her money and when she returned, the basket was stolen and the money was left in a pile on the ground.

My father is a collector. He has a coin collection and he once had a huge stamp collection. Unfortunately the entire stamp collection was in New Orleans getting appraised when Katrina hit. It's runied and worthless. The coin collection; however, it's safe and increasing in value.

Plan ahead -- things can fall apart awfully fast.

[Humbucker740]

At 1/9/08 12:25 AM, PirateAnneBonny wrote:

At 1/8/08 08:30 PM, Humbucker740 wrote: This is paranoid and over reactive.

Something else that occured to me: You say you're a libertarian, so why do you trust the government?

Our Constitution, which I know you want to protect, states that our money should be gold and silver, which it's not anymore because our government's a bunch of lying theives. Our Constitution states that Congress, alone, should have to power to regulate our currency, which they don't because those lying wimps gave the Federal Reserve the legal ability to counterfit. Now, our money has lost over 90% of it's value because of the whole pack of crooks. With the Federal Reserve and our government's notorious outright lies about our nation's budget and money supply, how can anyone know how bad our situation really is and how can those same crooks (politicians and bankers) be trusted with our currency anylonger?

Since people such as you don't seem to realize that a weaker dollar has as many positive impacts as it does negative, this can pretty much be disregarded as a character attack on me for no reason whatsoever except to try to persuade me by appealing to my beliefs.

If inflation is 10%, then they've just stolen 10% of your wealth. Can Congress be trusted to reign in spending? Not a chance. So how will our government get revenue? There's only two ways it can be done: raise taxes or deficit spend. Which would you prefer? Taxes: theft out in the open or Deficit spend: theft in secret. If you think our dollar won't lose anymore of it's value like it's been doing since 1913, then you clearly trust our politicians and bankers; a very un-libertarian attitude.

I agree that I don't like taxes but lets go back to what I originally said, "This is paranoid and over reactive. You're using me as a medium to express your point of view, instead make your argument a general argument and don't target it to me for no express reason.

I don't trust them, which is why I like gold.

Libertarianism is my IDEAL world. I have no faith in that Libertarianism will be upheld much less recognized as a sustainable form of government. When it comes to how America is and the status quo, I take a totally different point of view.

It is as a matter of principle that I vote for Ron Paul though he has no chance of winning. If he were not running I would most likely vote for Mitt Romney.

[PirateAnneBonny]

In fact, we're in crisis mode right now.! It's worse than anyone can imagine.

The Federal Reserve's job, what they were created to do, was to "maintain stable prices." Never before has anyone been so lousy at a job! Since 1913, when the Fed was created, the dollar has lost 97% of it's purchasing power! 97 freaking percent!!! Now we have Ben Bernanke's insane money auctions pouring dollars into the economy with $30 billion of new money every two weeks. This has to go somewhere and the only place it can go is prices -- inflation. Everything from the cost of pizza and beer to the cost of financing our national debt increases exponentially! Exponentially!!!

According to 321Gold.com we find that on Mon. Dec. 31st, the National Debt was $9,229,172,659,218.31, which means that something very interesting must have happened over the weekend, because on Dec. 28, the National Debt was only $9,120,549,682,475.62! Wow! Almost $129 billion in two days!

As prices increase, the dollar decreases which is worrying OPEC right now. They are inches away from following the advice of Pres. Mahmoud Ahmadinejad who wants oil priced in a hard currency and, since there's no national hard currency, they'll have to make one. For 6,000 that has only meant one thing -- gold! Hello gold-linked dirhams, bye bye paper dollar. Bye bye America.

We're so freaking doomed!

[PirateAnneBonny]

What a minute, Humbucker740, I wasn't attacking you. Sorry for the misunderstanding.

I'm a libertarian too and a Ron Paul supporter. I was just pointing out that by not having any gold, you put yourself at the mercy of the corrupt politicians (except Ron Paul) and bankers. Have you read Ron Paul's books about gold? They're great!

Let me put it to you this way -- if all you have are dollars and things denominated in dollars, like stocks, then you're totally at the mercy of whoever controls the value of those dollars which are the bankers and the politicians (except Ron Paul). Those lying scumbags got you by the balls. Congress is going to keep increasing their spending limit and they're going to keep exceeding that spending limit (because you know they can't be trusted to reduce spending) and to pay for it all, they're going to sell more Treasury bonds which have to be financed with an increase in more American dollars -- as the money supply goes up, value of each existing dollar goes down, even the ones in your pocket. Voila, they've just stolen from you secretely. You won't know that your dollars are worth less until you try to spend them on things that you need like gas and Froot Loops and beer whose prices have gone up.

On the outher hand, if you have gold and silver set aside, then you can survive whatever ruinous policies they do to the economy and even prosper. If you dont' trust the government, hold gold.

BTW, a low dollar doesn't do us a bit of good. When the value of our money drops, sure exports increase a little, but since we're a global economy now and we don't produce much in America anymore, then prices for things in America remain high and wages remain flat. Stagflation....if we're lucky!

[PirateAnneBonny]

More on whether or not a falling dollar is a good thing I'll give you this from Peter Schiff of Euro Pacific Capital:

"Many mistakenly believe that when the U.S. economy falls into recession, reduced domestic demand will lead to falling consumer prices. However, what is often overlooked is the fact that as the dollar loses value, the rising relative values of foreign currencies will increase consumer demand abroad. As fewer foreign-made products are imported and more domestic-made products are exported, the result will be far fewer products available for Americans to consume. So even if the domestic money supply were to contract, the supply of goods for sale would contract even faster. Shrinking supply will be a major factor in pushing consumer prices higher in America....The big problem politically is that hyper-inflation may superficially appear to be the lesser evil. If asset prices are allowed to collapse, ownership of those assets will pass to our creditors. If instead we repay our debts with debased currency, we retain ownership of our assets and shift the losses to our creditors."

That means we're headed for high inflation.

Actually, we're a service and consumer economy now, not a producing economy like we were 80-100 years ago. We simply don't have that much that is made completely in America to export, so a fallingn dollar doesn't have much good to offer. We're all freaking doomed!!

[Humbucker740]

Just as a side note, since, as you pointed out, we are in a globalized economy... so, why not just fix our exchange rate as some other countries do? Thats pretty much the same as the gold/silver standard and is cheaper for the government.

[PirateAnneBonny]

At 1/9/08 05:03 PM, Humbucker740 wrote: Just as a side note, since, as you pointed out, we are in a globalized economy... so, why not just fix our exchange rate as some other countries do? Thats pretty much the same as the gold/silver standard and is cheaper for the government.

That would be a solution; however, the currency traders would probably sabotage our government's efforts and wouldn't it be better for market forces to determine a currency's worth, anyways, instead of by government mandate?

Probably, the only way for the dollar to strengthen would be for the Federal Reserve to raise interest rates to somewhere above inflation. I'm guessing, it'll have to be 10 or 12%. It had to be raised to 21% to curb inflation in 1980. Could you imagine what people would do if that happened again? All hell would break loose! The weenies at the NYSE cry like babies if they don't get their.50 drop like they want.

The crash will come, all the Plunge Protection Team seems to be able to do is prolong the agony and delay the inevitible a little while longer.

[poxpower]

FYI : They stopped backing money with Gold and Silver because there is more money in the world than there is Gold and Silver and we need those minerals to do something USEFUL instead of stockpiling them like some idiots in case Joe Moron goes to the bank and decides to redeems 50 bucks in paper for a gold nugget.

[PirateAnneBonny]

At 1/9/08 09:06 PM, poxpower wrote: FYI : They stopped backing money with Gold and Silver because there is more money in the world than there is Gold and Silver and we need those minerals to do something USEFUL instead of stockpiling them like some idiots in case Joe Moron goes to the bank and decides to redeems 50 bucks in paper for a gold nugget.

So keeping prices stable over centuries is not "useful"? I guess you must like inflation. Move to Zimbabwe, you'll be in paradise with 1.5 million % inflation last time I checked. I'm sure it's much more now. Imagine prices of things doubling every hour or so!

If we were on a gold standard today, it would force our politicians to only spend the money that they received in taxes and NO MORE. This is why they took us off the gold standard. It's also the exact thing the Founders tried to warn us about by putting it in the Constiution that our money should be only gold and silver.

There wasn't any inflation in America when we had gold steady at $20.65 per ounce for a century! America was booming and it's government had to go to the people everytime it thought it needed money for something.

Look at the mess we're in now with fiat money and a government run amuck! We're feaking doomed!

http://www.guardian.co.uk/zimbabwe/artic le/0,,2108511,00.html

[PirateAnneBonny]

It sure looks like a fundamental shift is happening and who knows how far this will go....

Ooooh boy ....... Right now, the gold buying is just people hedging against inflation. All bets are off the table if the speculators jump in and start buying. When/if that happens, then we'll start hearing about a "gold bubble" like we had a dotcom bubble and a housing bubble and a stock bubble.....

The Golden Rule: He who has the gold makes the rules!

[poxpower]

At 1/9/08 10:56 PM, PirateAnneBonny wrote:

So keeping prices stable over centuries is not "useful"?

Why does the price of Gold itself fluctuate?
HMMMMM

p.s. we find more gold every year. NO, THERE WILL BE INFLATION.
p.p.s. inflation has nothing to do with gold

If we were on a gold standard today, it would force our politicians to only spend the money that they received in taxes and NO MORE.

Except by taking out credit from people who will give it to them. Like banks. Like they do now.

This is why they took us off the gold standard. It's also the exact thing the Founders tried to warn us about by putting it in the Constiution that our money should be only gold and silver.

They didn't have credit cards and electronic transfer, something that is so ridiculously beneficial to the intelligent individual and the economy as a whole that only a moron would demonize them.

Look at the mess we're in now with fiat money and a government run amuck! We're feaking doomed!

Yeah I guess we should listen to you, 13 year old who doesn't understand inflation, to solve the world's economic problems, even though every country on the earth has a currency that is backed by confidence and not some metal.

[PirateAnneBonny]

Okay, educate me .... How much gold is dug out of the ground around the world in one year? What about global goods produced? How much money and credit are produced around the world in one year? Compare them with gold and goods on one side vs. money and credit chasing after that stuff on the other... Voila, we have seen global inflation!

What makes you so sure we would give Uncle Sam a credit card if the American Dollar is pegged to gold? Would you give your lazy, good-for-nothing, irresponsible, gambling, drunk brother your credit card and the keys to your car? Doubt it. What's the difference, except the fact that at least you could beat the snot out of your brother if he doesn't pay you back? Not so easy with our incumbent-protected Congress.

[poxpower]

At 1/9/08 11:32 PM, PirateAnneBonny wrote: Okay, educate me .... How much gold is dug out of the ground around the world in one year? What about global goods produced? How much money and credit are produced around the world in one year? Compare them with gold and goods on one side vs. money and credit chasing after that stuff on the other... Voila, we have seen global inflation!

Here's a way to get inflation that has nothing to do with gold:

Oil supply gets low.
Price rises.
Transport costs rise.
Price of transported goods rise.
Price of everything has risen.

No one printed new money, no gold was dug, in fact this is inflation due to factors completely independant of gold or money, they are just tied to a ressource.

The value of the american dollar is based on the confidence investors have in the strenght of it's economy. It would be super great if we could base it on some infinite supply of gold, but that's crazy because the world's economic growth since the industrial revolution far exceeds the rate at which we dig up gold.

With your idiot system of gold, we'd have to systematically dig exactly as much gold as there is economic growth in a year. What the hell? It stopped working 80 years ago for a good reason.

What makes you so sure we would give Uncle Sam a credit card if the American Dollar is pegged to gold?

You coulnd't expect any kind of return interest for lending cash and the economy would CRUMBLE.
If there was no credit, there would be NOTHING. No new skyscappers, no people buying houses until they're 50, NOTHING.
Society would be thrown back 100 years.

[PirateAnneBonny]

Poxpower, you're forgetting about the value of labor. A hard currency would keep the prices of natural resources stable, but labor would add to the value of things. Suppose I dug a rock out of the ground and carved it into The Dying Gaul statue. I would pay 0$ for the stone, but would earn millions (supposedly if I were a good artist) at the sale of that stone. The increase in the value of that natural resource is pruely from my labor.

What makes you think there would be no skyscrapers? The Eiffel Tower was built in 1889 and was financed with gold. Shoot, look at all the cathedrals the Catholic Church built with gold during the Renaissance!

Drowning the world in an ocean of credit, just creates a misallocation of resources. Think: Enron and McMansions built on cliffs in California that have a tendency to fall into the ocean.

The thing about the Horror of Inflation to keep in mind , and why it's a thing to fear, is that rising wages can never keep pace with rising prices. When you find that your dollar doesn't go so far at the store and at the gas pump these days, how often can you tell your boss you need a raise? Or, if you're self-employed, how quickly can you raise your prices (and, therefore, your wage + overhead) before your customers leave you and go to someone else?

Price increases due to natural shortages are self-correcting. If there is a shortage of oil, then, your're right, transportation costs increase, and then the cost of everything else increases. But, then prices drop as people use less transportation for their own travel and less goods are bought at the store as prices rise. People save a bundle of money by switching to buying groceries and instead of eating at restaurants, for example. Then there's no oil shortabe anymore because demand has dropped.

That's not the case if inflation is created by a record-breaking increase in the amount of credit and money out there chasing after limited goods and natural resources. Then we have "Aaaah!! Help! We're freaking doomed! Run Away. Inflation is here!!!" Ergo, that wouldn't happen if the amount of money was equally as limited as the amount of goods and resources -- the joys of a hard currency.

[poxpower]

At 1/10/08 12:31 AM, PirateAnneBonny wrote:

What makes you think there would be no skyscrapers? The Eiffel Tower was built in 1889 and was financed with gold. Shoot, look at all the cathedrals the Catholic Church built with gold during the Renaissance!

Already told you, there's not enough gold in the world to back up the world's economy.
That doesn't work anymore. And now you want to deny credit?

Drowning the world in an ocean of credit, just creates a misallocation of resources.

Yeah technically it's better to not have any debts than to have some, but it doesn't have anything to do with Gold, it's just the way the world works now with all the international investors and whatnot.

The thing about the Horror of Inflation to keep in mind , and why it's a thing to fear, is that rising wages can never keep pace with rising prices. When you find that your dollar doesn't go so far at the store and at the gas pump these days, how often can you tell your boss you need a raise?

How is gold backing going to solve that?
The price of oil will still rise, so will the price of every ressource that is getting rarer, and there will always be people somewhere in the world ( China ) willing to do more work for less gold.

???

But, then prices drop as people use less transportation for their own travel and less goods are bought at the store as prices rise. People save a bundle of money by switching to buying groceries and instead of eating at restaurants, for example. Then there's no oil shortabe anymore because demand has dropped.

In theory. Except when you're poor and you're already doing the minimum, you get kicked out of your house or eat only potatoes for a month.
Still don't see how gold will solve any of this.

That's not the case if inflation is created by a record-breaking increase in the amount of credit and money out there chasing after limited goods and natural resources. Then we have "Aaaah!! Help! We're freaking doomed! Run Away. Inflation is here!!!

I'm pretty sure we're fine economically. We're not Zimbabwe here where some random dictator decided to print out 50 quadrillion dollars to buy weapons.

Explain again how
1 ) we can back all the money in the world with gold
2 ) this will solve anything