An interesting idea.
"The path to the gold standard--the path to remonetizing gold--is to once again lend and borrow gold, i.e., to use gold to finance productive activity."
What's The Path To The Gold Standard?
What's The Path To The Gold Standard?
Discussion in 'Money Talk$' started by KenH, Aug 27, 2018.
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InTheLight Well-Known MemberSite Supporter
Another problem with the gold standard is also related to the finite supply of it, and thus the finite supply of money. Supposing a country, say China, decided to hoard gold. They started buying up gold reserves and kept this a government policy for years, maybe even decades. At some point they would have sucked up the lions share of gold and then they could dictate how much money was available and by extension how much money was worth. I definitely prefer the United States being in that position with the US dollar as the world's most trusted currency. -
Answers, for free, here:
https://newworldeconomics.com/wp-content/uploads/2016/12/GTMPed3ebook.pdf -
InTheLight Well-Known MemberSite Supporter
Kind of a lengthy read. Do they discuss the meteorite problem? Supposing a meteorite rich in gold fell onto any particular country. That country could be either an instant economic superpower or the country benefiting from it could pull away from all others.
Or the mining of asteroids problem? -
It's been four years since I read the book, or rather listened to the audio version driving back and forth to work. I don't recall it dealing with unlikely scenarios during the lifetimes of people currently living on earth. :Biggrin
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As much as I dislike inflation eating in to the buying power of my savings, I'm pretty sure that I would dislike a system doomed to deflation any better.
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InTheLight Well-Known MemberSite Supporter
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As I said it’s been 4 years since I read the book and I really haven’t thought much about it since. I was running for Congress as a Libertarian in 2014 and I wanted to use support for the gold standard in my campaign against crucifying the American people on a cross of fiat paper currency.
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It’s a very interesting book from looking at the history of the gold standard to implementing a modern gold standard.