The truth about the gold standard

[EdwardBaiamonte]

Its really no better than the paper standard because both depend 100% on government administration. The issue is not what standard we use but rather what knowledge we use in administering the standard.

Its actually really simple:

1) make inflation illegal

2) make bubbles illegal

3) minimize runs

This would eliminate virtually all economic volatility

 

[bripat9643]

Its really no better than the paper standard because both depend 100% on government administration.

Wrong.

 

[EdwardBaiamonte]

Its really no better than the paper standard because both depend 100% on government administration.

Wrong.

of course if it was wrong you would not be so afraid to say why.
Surely your fear tells you something?

 

[bripat9643]

Its really no better than the paper standard because both depend 100% on government administration.

Wrong.

of course if it was wrong you would not be so afraid to say why.
Surely your fear tells you something?

Under free banking each bank issues its own currency which it backs with gold. No government administration of any kind is required.

 

[EdwardBaiamonte]

Wrong.

of course if it was wrong you would not be so afraid to say why.
Surely your fear tells you something?

Under free banking each bank issues its own currency which it backs with gold. No government administration of any kind is required.

Of course then you have 1000 banks with 1000 different currencies and trade over distance become impossible. The government has to store and ship gold overseas and domestically, and not panic when it seems all the gold is going over seas. The government has to monitor the quality and weight of gold, enforce contracts, audit banks, be the lender of last resort in panics, etc etc.