What's a Gold Standard?
You cannot create buying power by printing more paper money. The more scrip there is, the less it's worth. "Increasing the money supply" by printing more bills is like increasing the amount of punch at a party by adding more water to it. As Gresham's Law says, "Bad money drives out good."
Of course, WE have to accept anything that the government chooses to call money. The legal tender laws require us to. However, they are not binding on foreigners and they soon realise that the currency has been watered down and the exchange rate is adjusted accordingly.
It remains an incontestible fact that YOU CANNOT RUN OFF GOLD ON A PRINTING PRESS. Base metal coinage can be stamped out in just as vast quantities as paper money because the raw material is cheap. Currency has to be made of an expensive material so that the government cannot go hog-wild in over-producing it .
Any precious metal could be used, but platinum is too scarce. Gold and silver both meet the requirements of scarcity and expense. This is why they have been used for currency since about 750 BC.
Paper money based on gold and/or silver can be produced in excess of the amount of gold and silver available to back it up and, unless there is a run on the treasury, no one will notice the deception. The only REALLY trustworthy currency is precious metal coinage.
When I advocate the "gold standard" , inasmuch as the government cannot be trusted not to print gold-backed paper money in excess of its gold reserves, I advocate the abolition of paper money ! This would be horribly inconvenient, but NO paper currency is trustworthy. The value of a precious metal coin can NEVER be less than its bullion value.
Gold coins would be suitable only for very high denominations. For everyday transactions, silver would be more practical, and copper is so expensive now, that it could also be used for low denomination coins.
Fixed gold and silver ratio has many problems. I'm for floating gold and silver standard. Gold is too much concentrated in the hands of super rich. Silver is peoples money. That's why I'm not for strictly gold standard. It must be gold and silver.
What skullnboner is talking about is almost a separate issue: the problem of interest, which is fundamental. Yes, fractional reserve banking is no good, and a gold standard would ameliorate this to extent, but the problem is usury, as it always was, and until this is dealt with, we might as well have a turd standard because it will always lead to collapse.
So you mean a nationalised system of loaning. I agree, that would keep it under control and people could still be able to get a head a little as well.
The only thing they like about Nazism is the stuff that looks mean, like the Holocaust (which didn't actually happen, don'tcha know? lol ) and eugenics, stopping 'fags' and naming the Joooooo!
Yes, why not? We should own our government, and our country.So you mean a nationalised system of loaning. I agree, that would keep it under control and people could still be able to get a head a little as well.
A nationalised system of loaning is tanamount to the nationalisation of private property, which is the foundation of capital and free enterprise. Socialism is inherently doomed because it incorporates no mechanism for economic calculation.
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