[DeaconBenjamin]

The increase in world gold supply resulting from the California gold rush in 1849 had only a very minor impact on American money supply. In 1853, the silver value of dollars and smaller coins were reduced somewhat to reflect a change in the worldwide valuation of gold vis a vis silver. Ironically, a small, but notorious loss of gold supply (the sinking of the SS Central America) actually had a greater impact on the US economy -- at least some credit the loss of this ship with the panic of 1857.

When the world employed a bimetallic standard (gold & silver) between 1815 and 1914, the exchange rate between nations was unbelievably stable, which dramatically promoted the development of world trade. In fact, the Australian, South African, and Yukon gold rushes had no impact on foreign exchange rates.

Since World War I, and particularly since the collapse of Bretton Woods, businesses involved in international trade have been forced to consider currency fluctuations in determining the "bottom line" success or failure of their exchanges of product or services for currency.

[getsoutalive]

When the world employed a bimetallic standard (gold & silver) between 1815 and 1914, the exchange rate between nations was unbelievably stable, which dramatically promoted the development of world trade

Well we certainly can't have that now can we. Besides, what would all those currency traders do for a living?

Since World War I, and particularly since the collapse of Bretton Woods, businesses involved in international trade have been forced to consider currency fluctuations in determining the "bottom line" success or failure of their exchanges of product or services for currency.

I can almost see a light go on every time I point this one out. The increased efficiencies would plug a huge drain from the system.

[rohry]

Hey guy/gal, ping me when you see gold/silver discussions. Everyone's "gone home" and I just discovered this thread...