[BfloGuy]

the supply of gold in the universe is limited and cannot expand to meet the needs of expanding economies

I don't agree that the money supply needs to expand as the economy expands. With a stable money supply, prices would adjust downwards instead of upwards as they do now. In other words, the purchasing power of the currency would increase.

the combination of a gold standard and fractional reserve banking was toxic all during the 1700s and 1800s

Yes, it was. But fractional reserve banking without any semblance of a standard to fall back on is even more toxic. And, despite the bank-skullduggery, the recessions were short and, once over, prices reverted quickly to pre-boom levels.

[Toddsterpatriot]

With a stable money supply, prices would adjust downwards instead of upwards as they do now. In other words, the purchasing power of the currency would increase.

That would be terrible for us.

[djf]

Exactly.

With a fixed money supply and an increasing amount of goods, prices will fall.

That concept encourages savings and investment, and discourages borrowing and the attached interest.

That’s why the bankers HATE it!

A system based on credit is the other way around.