Discussion in 'Economy' started by Kevin_Kennedy, Jun 24, 2009.
Campaign For Liberty — Does Your Freedom Depend on Gold? | by Adam Murdock, MD
Problem, gold was valuable because of many factors. One major important one was the lack of use, it was pretty and rare but had no use other than collecting, so it became valuable as a commodity ...
... now however, it has an important use, circuitry. Electronic components have a lot of gold in them, so we have to use it for that and deplete the "collection" ... so now money has to go back to representing goods and services, of which our country is lacking lately.
That's fine, gold can have many uses. It doesn't matter how much gold is being used to back the currency so long as you tie the currency to gold at the correct parity.
Point was, we can't use it as a standard. We now have a use for every metal, so using that as a standard is pointless.
No, it's not. Gold still maintains a high value and I see no reason why it wouldn't serve us as well now as it has in the past. However, I'd also advocate using silver along with gold.
Um ... yeah it has a high value still ... because it's useful, everything useful has high value.
Well the fact that it maintains a high value means that it could be used as a commodity, and there's no reason why it couldn't be used for other purposes as well.
It cannot be used as a standard for the dollar or it will be hoarded and it's use unfulfilled.
Some of it would not be put to that use, and some of it would. That's the way a market works, taking scarce resources and putting them to their most efficient use.
The gold stardard practically wrecked the economy in the late 19th century, Kevin.
All the gold ended in the hands of a few and we had a depression because of it.
Our source that served the economy of those holding gold rather well, but the rest of the nation suffered as a result of it.
God makes a crappy specie if the economy is growing
There just isn't enough of it to serve vibrant societies.
It might have worked well enough in a feudal society where the economy was not growing, but in a society with a growing economy it causes DEflation.
And DEflation is the death of economic growth, sport.
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