Do any of these gold-standard types ever look at the whipsaws the economy used to make? We see a 5% decline in economic activity and all hell breaks loose. In the “good old days,” that wouldn’t even register. These are declines in economic activity; the declines in actual dollar amounts of the GDP would be far larger in the gold-standard age:
2007-2009: -5%
1929-1938: -26%
1923-1924: -22%
1920-1921: -28%.
Panic of 1907: -29%
1895-1897: -25%
Panic of 1893: -37%
1882-1885: - 33%
1873-1879: -34%
And check out this Depression far worse than the Great Depression!: -52%!!!
The problem is that a soaring price of gold, which happens during a recession, inhibits spending. Decoupling dollars from gold allows spending to continue despite the soaring price of gold. Worst still, gold could soar for no good economic reason, just speculation.
The -52% GDP was 1836-1843.
“Decoupling dollars from gold allows spending to continue....”
And that, is the problem, it allows governments to grow bigger, only a sound currency keeps governments SMALL.
We want a smaller government, and sound money is the way to do it. The mechanics of HOW to do that, I am not knowledgeable to say, but the current system is about to fail.
The dollar is being devalued to save the banking and the elites system. And WE the taxpayers, are going to get screwed. Why do you say we should do nothing to protect ourselves and our families?
“Decoupling dollars from gold allows spending to continue despite the soaring price of gold”
That and your other arguments against a gold standard are awesome. Im glad that the way of protecting myself from such things is to have the dolar lose 96% of it’s purchasing power since we created the federal reserve and fiat money.
Losing a few percentage points of my buying power every single year is awesome! I cant wait for my grandkids to experience buying a 50 dollar candy bar, and driving it home in their million dollar car, to their 15 million dollar house as they cash their 15,000 dollar weekly paycheck as a fast food worker!
Another way to say this is that under a gold standard, prices decrease relative to gold & gold-linked money, and savers are rewarded. Having been a prudent person over the years, I don't really see the problem.
You seem to trust the phony stats that self-serving politicians have implemented.
Inflation and unemployment are about double what they are reported to be, using Carter-Reagan standards that weren’t so fudged.
GDP numbers are similarly fudged to make recessions look much milder.