[DallasMike]

Very nice article. I was a fan of the gold standard for about 4 days while I was a college student. The arguments for the gold standard make perfect sense -- until you realize that they're built on shaky foundations. Most gold enthusiasts don't know it or won't admit it, but when economies were gold-based, they experienced inflation, deflation, and bank runs just as modern economies do.

[jlogajan]

Most gold enthusiasts don't know it or won't admit it, but when economies were gold-based, they experienced inflation, deflation, and bank runs just as modern economies do.

That's not due to the gold (or any other) base -- that's due to fractional reserve banking. Where short term savings accounts back long term loans outstanding at some multiplier. It does make more efficient use of the money, but it is enormously risky -- bank runs and the like.

Gold is primarily meant to prevent governments from inflating. It doesn't prevent every shinanigan.