A gold standard curbs State monetary abuse, and to that extent is to be esteemed, and comes now an Austrian economist who is arguing FOR the euro, in the measure it is presently mimicking a gold standard.
I am not sure I buy the argument, but the points made in this video around the argument are edifying, well worth the 30 minutes run time.
Feel free to forward this by email to three of your friends.
I am not sure I buy the argument, but the points made in this video around the argument are edifying, well worth the 30 minutes run time.
Feel free to forward this by email to three of your friends.
4 comments:
I don't think that a gold standard is really a good idea. Doesn't a growing economy need a growing money supply?
http://www.theatlantic.com/business/archive/2012/08/why-the-gold-standard-is-the-worlds-worst-economic-idea-in-2-charts/261552/
http://mikenormaneconomics.blogspot.com/search?q=gold+standard
No. Defined accurately, gold and silver are money. So the money supply is what gold and silver is available.
1. Almost no business is transacted in money. Asset backed credit is what commerce relies upon. By giving banks a monopoly on easy (non-asset backed, interest manipulated) credit, the economy is woefully distorted.
2. If and when more coin is needed, jewelry, plate and decoration is melted down in response to rising prices. When less is needed, coins are converted to jewelry, plate and decoration. There are never been a shortage or money. Only bad State policies.
3. The Florentine renaissance was built on the Lire, a notional silver coin used in tallies. Ancient cities destroyed by natural disaster are full of tallies. Ancient cities destroyed by war are full of buried gold. The desire for gold today is in relation to expectations of war.
States create problems where none otherwise exist, and the fable of "money supply" is a key example. those who benefit from this policy enjoy it, to the detriment of those who do not. Those whoa re harmed by this policy are called "culturally inferior," wing nuts, or some other unkind term.
We all love a system that works for us.
How can gold and silver be considered money? This is not clear. Can you go to the grocery store and pay with gold coins or bars when buying groceries? The cashier is not going to accept payment that way. Can you pay taxes with gold coins? (As far as I know, the IRS and the Treasury department only accept tax payments in dollars.) Gold and silver are commodities. If not, then why not use aluminum, copper or palladium as money as well (or any other commodity, like barrels of oil)? A growing economy needs a growing money supply. There is a limited amount of gold and silver or any other commodity, so that would limit or harm economic growth?
Yes, it is confusing, and that is the intent...
"How can gold and silver be considered money? This is not clear. Can you go to the grocery store and pay with gold coins or bars when buying groceries? "
***No by force of violence, backed law, you are obliged to use fiat federal reserve currency, which is both force and fraud.***
The cashier is not going to accept payment that way.
***Correct, by law we are obliged to use federal reserve notes.***
Can you pay taxes with gold coins? (As far as I know, the IRS and the Treasury department only accept tax payments in dollars.)
*** Actually, since the US Mint still issues silver and gold coins as money, you can, not that it matters much one way or another.***
Gold and silver are commodities.
***Yes, even before they are money. They are of course commodities... and as such they can vary in price... but one of the half dozen reasons something emerges as money is as a commodity it relatively stable...***
If not, then why not use aluminum, copper or palladium as money as well (or any other commodity, like barrels of oil)?
***Each could be, but none have ever emerged as money...***
A growing economy needs a growing money supply.
***That is mere assertion... there is nothing to support your claim.***
There is a limited amount of gold and silver or any other commodity, so that would limit or harm economic growth?
***Why, if the supply were cut in half (not possible) or double overnight (meteor?) prices would adjust immediately to meet need. Those with contracts quoted in gold or silver would would either adjust, or end up in lawsuit.
And this misses the other important point.. in history money is almost never used... there is massive asset backed credit extension in free markets, no gold involved. In capitalism the state employs force and fraud to maintain the money on fiat currency. There is a difference between asset backed credit extension on a voluntary basis, and violence backed fiat currency.***
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