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

To: Comparative Advantage

Maybe the gold standard’s the way to go or maybe it’s not. But this fiat thing sure ain’t working.


5 posted on 12/04/2011 8:42:30 PM PST by MichaelCorleone (Stop feeding the beast; if they don't say "Merry Christmas", don't buy.)
[ Post Reply | Private Reply | To 1 | View Replies ]


To: MichaelCorleone
"Maybe the gold standard’s the way to go or maybe it’s not. But this fiat thing sure ain’t working."

The fiat thing is working fine. The dollar is more stable on a year to year basis than it was on the gold standard. The only difference is that while gold had wild swings of inflation AND deflation, fiat money always errs on the side of slight inflation, because that's the side that's good for business. Deflation is associated with depressions.

On the gold standard America had depressions every 20 years. Not so with fiat money. Once we got past the learning curve with the great depression, we've been able to avoid depressions.

The thing that is not working is congressional overspending. But if you think congress can't borrow and spend by promising that your children will pay in gold, you're wrong.

And there are a lot of powerful people such as Soros and China that would love to see the Federal Reserve dissapear and replaced with something they could manipulate like the gold standard.

38 posted on 12/05/2011 1:11:38 AM PST by DannyTN
[ 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