Trust Mises and Gold

[Kevin_Kennedy]

"A preference for a tangible gold currency is no longer more than a relic of a time when Governments were less trustworthy in these matters than they are now, and when it was the fashion to imitate uncritically the system which had been established in England and had seemed to work so well during the second quarter of the nineteenth century." -- John Maynard Keynes, 1913

This statement appears in the first book written by John Maynard Keynes, Indian Currency and Finance. I regard this statement as one of the early academic salvos against the gold standard. It was an early phase of what I have called the gold wars. You can download my 100-page study here:

http://garynorth.com/goldwars.pdf

In my recent article, "Why Gold Owners Are Targets of the Government," I made the point that the international gold standard served as a restraint on the ability of governments to defraud their citizens through monetary inflation. With the destruction of the gold standard, beginning in 1914 with the outbreak of World War I, citizens around the world have seen the destruction of purchasing power in every nation through monetary inflation. Not one currency has maintained its purchasing power of 1914. There is a reason for this: not one currency is redeemable on demand in gold.

Trust Mises and Gold, Not Keynes, Bernanke, and Fiat Money

 

[midcan5]

The gold standard is a better monetary system.

"The far right advocates the gold standard because it gets government out of the business of controlling the money supply. They fear that printing money creates inflation, and retracting money causes recessions. But the opposite is also true: printing money cures recessions, and retracting it cures inflation. Governments in the last 60 years have used these policies with tremendous success. There has not been a single depression or bank panic in any nation anywhere in the world using Keynesian monetary policies. But during the Gilded Age of the late 19th and early 20th centuries, depressions and bank panics were common. The historical record is so strong that mainstream economists reject the gold standard almost universally."

 

[editec]

"A preference for a tangible gold currency is no longer more than a relic of a time when Governments were less trustworthy in these matters than they are now, and when it was the fashion to imitate uncritically the system which had been established in England and had seemed to work so well during the second quarter of the nineteenth century." -- John Maynard Keynes, 1913

This statement appears in the first book written by John Maynard Keynes, Indian Currency and Finance. I regard this statement as one of the early academic salvos against the gold standard. It was an early phase of what I have called the gold wars. You can download my 100-page study here:

http://garynorth.com/goldwars.pdf

In my recent article, "Why Gold Owners Are Targets of the Government," I made the point that the international gold standard served as a restraint on the ability of governments to defraud their citizens through monetary inflation. With the destruction of the gold standard, beginning in 1914 with the outbreak of World War I, citizens around the world have seen the destruction of purchasing power in every nation through monetary inflation. Not one currency has maintained its purchasing power of 1914. There is a reason for this: not one currency is redeemable on demand in gold.

Trust Mises and Gold, Not Keynes, Bernanke, and Fiat Money

You may find it odd that somebody like me who thinks the gold standard is a silly idea agrees with the above, but I do.

A Fiat money economic is no better than the people who control it.

The people who controlled ours in the last thirty or fourty years didn't do it on behalf of the American economy, they did it on behalf of themselves.

As soon as one of you Miseian genuises can explain to me how to overcome the inherent problems of the gold standard you may find a convert.

Thus far your entire argument for the gold standard is the problem of fiat monetary systems run by gangsters.

THAT problem I fully understand.

Your gold standard solution, I DONT.

 

[Kevin_Kennedy]

The gold standard is a better monetary system.

"The far right advocates the gold standard because it gets government out of the business of controlling the money supply. They fear that printing money creates inflation, and retracting money causes recessions. But the opposite is also true: printing money cures recessions, and retracting it cures inflation. Governments in the last 60 years have used these policies with tremendous success. There has not been a single depression or bank panic in any nation anywhere in the world using Keynesian monetary policies. But during the Gilded Age of the late 19th and early 20th centuries, depressions and bank panics were common. The historical record is so strong that mainstream economists reject the gold standard almost universally."

All wrong. Every panic, recession, downturn, and depression great and small can be traced back to government or national or central bank interference in the market. Also, these policies being used "with tremendous success" is quite a stretch. The Great Depression lasted until 1946, and that's a great success?

 

[Iriemon]

The every other day "gold is great" thread by KK that have been rebutted ad naseum in multiple threads already in the short time I've been here.

If we really were interested in the daily report from the Mises institute we could subscribe there.

Kevin, just of curiousity, how much of your assets do you hold in gold?

 

[Kevin_Kennedy]

"A preference for a tangible gold currency is no longer more than a relic of a time when Governments were less trustworthy in these matters than they are now, and when it was the fashion to imitate uncritically the system which had been established in England and had seemed to work so well during the second quarter of the nineteenth century." -- John Maynard Keynes, 1913

This statement appears in the first book written by John Maynard Keynes, Indian Currency and Finance. I regard this statement as one of the early academic salvos against the gold standard. It was an early phase of what I have called the gold wars. You can download my 100-page study here:

http://garynorth.com/goldwars.pdf

In my recent article, "Why Gold Owners Are Targets of the Government," I made the point that the international gold standard served as a restraint on the ability of governments to defraud their citizens through monetary inflation. With the destruction of the gold standard, beginning in 1914 with the outbreak of World War I, citizens around the world have seen the destruction of purchasing power in every nation through monetary inflation. Not one currency has maintained its purchasing power of 1914. There is a reason for this: not one currency is redeemable on demand in gold.

Trust Mises and Gold, Not Keynes, Bernanke, and Fiat Money

You may find it odd that somebody like me who thinks the gold standard is a silly idea agrees with the above, but I do.

A Fiat money economic is no better than the people who control it.

The people who controlled ours in the last thirty or fourty years didn't do it on behalf of the American economy, they did it on behalf of themselves.

As soon as one of you Miseian genuises can explain to me how to overcome the inherent problems of the gold standard you may find a convert.

Thus far your entire argument for the gold standard is the problem of fiat monetary systems run by gangsters.

THAT problem I fully understand.

Your gold standard solution, I DONT.

We "gold bugs," as you like to call us, have tried to explain the benefits to you, but you simply reject our answers. I don't think it's a lack of understanding on your part, I just think you disagree with the idea of a gold standard completely. Not everyone's going to agree, but we'll keep trying to convert you.

 

[Kevin_Kennedy]

The every other day "gold is great" thread by KK that have been rebutted ad naseum in multiple threads already in the short time I've been here.

If we really were interested in the daily report from the Mises institute we could subscribe there.

Kevin, just of curiousity, how much of your assets do you hold in gold?

My personal finances are of no concern to an online message board.

 

[Iriemon]

The every other day "gold is great" thread by KK that have been rebutted ad naseum in multiple threads already in the short time I've been here.

If we really were interested in the daily report from the Mises institute we could subscribe there.

Kevin, just of curiousity, how much of your assets do you hold in gold?

My personal finances are of no concern to an online message board.

I had thought that you had said earlier you had invested in gold and were doing well by it. I could very well be mistaking you for someone else.

I agree your personal finances are your personal business and you are certainly under no obligation to share such information.

Though it would sure explain why you are so in favor of a gold standard.

 

[LOki]

You may find it odd that somebody like me who thinks the gold standard is a silly idea agrees with the above, but I do.

A Fiat money economic is no better than the people who control it.

The people who controlled ours in the last thirty or fourty years didn't do it on behalf of the American economy, they did it on behalf of themselves.

As soon as one of you Miseian genuises can explain to me how to overcome the inherent problems of the gold standard you may find a convert.

Thus far your entire argument for the gold standard is the problem of fiat monetary systems run by gangsters.

THAT problem I fully understand.

Your gold standard solution, I DONT.

An actual gold standard really can't work now, because there's far more wealth than available gold to represent it. Doomsday-bunker building luddites are a bit stuck on an actual gold standard, out of some romantic nostalgia for the "good ol' days" when a buck was worth something--something valuable--and thought wrong in particulars, they make a vlid point in principle. The more thoughtful "gold bugs" aren't asserting that money has to actually equate to gold, but rather that money should have some objectively predictable and measurable value; that money should equate to a value not subject to the caprices of political expediencies. That's the real Gold Standard argument--not that gold, and only gold, is the end-all and be-all of economic stabilty, but that a monetary system founded upon an objective standard is more stable than one founded upon some retard's capacity to print money, or force an interest rate.

"This is the shabby secret of the welfare statists' tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard."--Alan Greenspan​

The welfare statists, predictably, will have the same issues with any monetary system based upon an objective standard--it interferes with their ability to control wealth that they have not created, and posses wealth they have not earned.

 

[Kevin_Kennedy]

The every other day "gold is great" thread by KK that have been rebutted ad naseum in multiple threads already in the short time I've been here.

If we really were interested in the daily report from the Mises institute we could subscribe there.

Kevin, just of curiousity, how much of your assets do you hold in gold?

My personal finances are of no concern to an online message board.

I had thought that you had said earlier you had invested in gold and were doing well by it. I could very well be mistaking you for someone else.

I agree your personal finances are your personal business and you are certainly under no obligation to share such information.

Though it would sure explain why you are so in favor of a gold standard.

You must be thinking of somebody else.

 

[Truthmatters]

he supports it because he is obsessed with Mises

 

[Kevin_Kennedy]

he supports it because he is obsessed with Mises

Did you have anything substantial to add to the discussion or did you simply want to spout your nonsense?

 

[Iriemon]

The gold standard is a better monetary system.

"The far right advocates the gold standard because it gets government out of the business of controlling the money supply. They fear that printing money creates inflation, and retracting money causes recessions. But the opposite is also true: printing money cures recessions, and retracting it cures inflation. Governments in the last 60 years have used these policies with tremendous success. There has not been a single depression or bank panic in any nation anywhere in the world using Keynesian monetary policies. But during the Gilded Age of the late 19th and early 20th centuries, depressions and bank panics were common. The historical record is so strong that mainstream economists reject the gold standard almost universally."

All wrong. Every panic, recession, downturn, and depression great and small can be traced back to government or national or central bank interference in the market. Also, these policies being used "with tremendous success" is quite a stretch. The Great Depression lasted until 1946, and that's a great success?

Depends upon how you measure it.

But a big part of the reason why it took so long is because the depression was so deep, and a big part of the reason why it was so deep was because in the middle of depression the Fed raised interest rates.

TO MAINTAIN THE GOLD STANDARD.

 

[Kevin_Kennedy]

The gold standard is a better monetary system.

"The far right advocates the gold standard because it gets government out of the business of controlling the money supply. They fear that printing money creates inflation, and retracting money causes recessions. But the opposite is also true: printing money cures recessions, and retracting it cures inflation. Governments in the last 60 years have used these policies with tremendous success. There has not been a single depression or bank panic in any nation anywhere in the world using Keynesian monetary policies. But during the Gilded Age of the late 19th and early 20th centuries, depressions and bank panics were common. The historical record is so strong that mainstream economists reject the gold standard almost universally."

All wrong. Every panic, recession, downturn, and depression great and small can be traced back to government or national or central bank interference in the market. Also, these policies being used "with tremendous success" is quite a stretch. The Great Depression lasted until 1946, and that's a great success?

Depends upon how you measure it.

But a big part of the reason why it took so long is because the depression was so deep, and a big part of the reason why it was so deep was because in the middle of depression the Fed raised interest rates.

TO MAINTAIN THE GOLD STANDARD.

A gold standard that was undermined thanks to the inflation of World War 1 and the 1920's.

 

[Iriemon]

All wrong. Every panic, recession, downturn, and depression great and small can be traced back to government or national or central bank interference in the market. Also, these policies being used "with tremendous success" is quite a stretch. The Great Depression lasted until 1946, and that's a great success?

Depends upon how you measure it.

But a big part of the reason why it took so long is because the depression was so deep, and a big part of the reason why it was so deep was because in the middle of depression the Fed raised interest rates.

TO MAINTAIN THE GOLD STANDARD.

A gold standard that was undermined thanks to the inflation of World War 1 and the 1920's.

Yep. Exactly right. That is the problem with gold standards. They get undermined and there is nothing the Govt or anyone can do about it except watch the economy go down the tubes.

Why is that a good thing again?

 

[Kevin_Kennedy]

Depends upon how you measure it.

But a big part of the reason why it took so long is because the depression was so deep, and a big part of the reason why it was so deep was because in the middle of depression the Fed raised interest rates.

TO MAINTAIN THE GOLD STANDARD.

A gold standard that was undermined thanks to the inflation of World War 1 and the 1920's.

Yep. Exactly right. That is the problem with gold standards. They get undermined and there is nothing the Govt or anyone can do about it except watch the economy go down the tubes.

Why is that a good thing again?

Well you seem to be inferring that the gold standard just gets undermined on its own and the government must simply sit back and watch as it happens. But it is the government that allows the gold standard to be undermined. But just because the government is able to abuse the system doesn't mean it's not the preferable system.

 

[Truthmatters]

he supports it because he is obsessed with Mises

Did you have anything substantial to add to the discussion or did you simply want to spout your nonsense?

You keep spouting the same nonsense over and over.

 

[Kevin_Kennedy]

he supports it because he is obsessed with Mises

Did you have anything substantial to add to the discussion or did you simply want to spout your nonsense?

You keep spouting the same nonsense over and over.

Then put me on ignore or ignore my threads, it's your own choice to respond and get involved in my discussions.

 

[Truthmatters]

"your" discussions?


You never discuss anything you just regurgitate mises articles

 

[Kevin_Kennedy]

"your" discussions?


You never discuss anything you just regurgitate mises articles

Then ignore me, there's no reason for you to repeatedly troll me with your nonsense. You're honestly not making me look bad, and you're not adding to the discussion. So what is your point for continually trash talking Mises? There are those such as Toro, Iriemon, and Nemesis that have an actual opinion on Mises and Austrians but you simply denounce and insult us. If you don't like my threads then put me on ignore, it's that simple.