I’ve always said I prefer deflation because it has a floor that can’t be budged while you can always push the ceiling higher. Wages will fall behind inflation but will also fall behind deflation so a wage earner will make out better in a deflationary spiral than an inflationary one where your wages are forever chasing rising costs.
Need any more proof how harmful inflation is than to see that Obama and the Democrats are all for it?
Let governments unleash freedom, in all its forms, on the people - watch world economies expand in a way not seen since the roaring 20’s if ever.
The free market and freedom in general cures all.
Problem solved.
The Bible says it will be inflation. Check out the description of the Third Seal from the book of Revelation.
Revelation 6:5-6
5 When the Lamb opened the third seal, I heard the third living creature say, “Come!” I looked, and there before me was a black horse! Its rider was holding a pair of scales in his hand. 6 Then I heard what sounded like a voice among the four living creatures, saying, “Two pounds[a] of wheat for a day’s wages,[b] and six pounds[c] of barley for a day’s wages,[d] and do not damage the oil and the wine!”
This is a description of hyperinflation.
As for the gold standard, the current system of a dollarized global economy has substantial economic and strategic benefits for the US that would be lost with a full return to gold as a formal monetary base. The most likely scenario is that if it becomes necessary, the US and other heavily indebted developed economies would issue bonds backed by gold as an assurance against inflation. In that instance, gold would function not as money but as a commodity hedge against inflation.
Moreover, advocates for the gold standard ought to recognize that the fundamental reason why the gold standard was abandoned was its role in extending and deepening the Great Depression through persistent deflation. As it happened, the US and France both adopted policies of gold accumulation that effectively withdrew many tons of gold from the world's monetary base. The result was to foster a crippling wave of deflation throughout the world.
A return to the gold standard would thus make the US and world economies vulnerable to manipulation in ways that are little recognized. In effect, a country or alliance of countries could generate deflationary pressures by buying up gold and not issuing equivalent currency. Do we really want to give our adversaries that kind of power?