Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: arrogantsob
Gold is not a “monetary metal”. It is a very pretty metal. We will never again use it as a money particularly since it is so popular across the world.

Because that fiat paper currency is working out so well for everyone, right?

5 posted on 10/17/2012 1:34:35 PM PDT by OB1kNOb (November 6th is the tipping point for freedom in America.)
[ Post Reply | Private Reply | To 2 | View Replies ]


To: OB1kNOb

Actually it is working fine. Our problem is government spending and regulations not an unstable money supply.

It is also a myth that we ever had a real “gold standard” for anything but brief periods of peace. Every war knocked our monetary standards for a loop.

Switzerland has a paper currency which is very stable. But they also have fiscal discipline.

Gold is no panacea. Look at the history since 1974: dramatic increase in price followed by a price collapse and a couple of decades of little movement then an explosive price increase. And the history of gold standard regimes prior to 74 shows great government manipulation of the gold market to attain their monetary goals. It is also INHERENTLY deflationary with a bias towards recession. This essentially is why it will never be a monetary medal again.


6 posted on 10/17/2012 1:56:26 PM PDT by arrogantsob (The Disaster MUST Go. Sarah herself supports Romney.)
[ Post Reply | Private Reply | To 5 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson