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To: RockinRight

You prefer the current situation? Obviously the financial situation will have to get much worse before a return to the gold standard but it will eventually occur. Hopefully I will be gone from this mortal coil before then because the pain will be real.


9 posted on 12/02/2007 6:48:00 PM PST by saganite
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To: saganite

With the gold standard, you are faced with a limited supply of money which creates several major obstacles to economic growth:

-zero-sum economics - with a fixed supply of money (gold) one man cannot become rich without impoverishing others
-limited ability to lend money - even a guy wiht 30% down an a 700 credit score might not be able to get a mortgage because a bank literally “runs out” of money to lend
-banks could lie about gold reserves actually existing - which is one reason the gold standard was moved away from in the first place


10 posted on 12/02/2007 6:50:05 PM PST by RockinRight (Just because you're pro-life and talk about God a lot doesn't mean you're a conservative.)
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