Terry Coxon blows off the spurious myths about the gold standard and concludes that the major benefit of being on a gold standard would prevent "reckless expansion" of money so as to preserve the purchasing power of the dollar. Really? Inflation is really roaring these days, isn't it. Oh right, any day now. That must be what historically low rates on Treasuries are signaling. You know the story, historically low rates have no way to go but up.
Nothing about the downside, either — you know, like being deflationary in an era of high private debt and ensuring that foreign trade is mercantilist. Who would end up with the pile of gold at the end of the day? Maybe the Saudis and other oil producers, like Russia?
Read it at Zero Hedge
Myths And Realities Of Returning To A Gold Standard
Submitted by Terry Coxon of Casey Research