tag:blogger.com,1999:blog-2761684730989137546.post7129179365326900088..comments2024-03-28T20:28:01.733-04:00Comments on Mike Norman Economics: Mathew O'Brien - Why the Gold Standard Is the World's Worst Economic Idea, in 2 Chartsmike normanhttp://www.blogger.com/profile/03296006882513340747noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-2761684730989137546.post-74569458441888999872019-01-09T16:25:04.309-05:002019-01-09T16:25:04.309-05:00The post 1913 Fed system is continuously condemned...The post 1913 Fed system is continuously condemned by Ron Paul and the Austrians. More B.S. from the "progressives". Another strawman. Further, the author admits:<br /><br /><i>It's not clear cut when exactly the U.S. was on or off the gold standard. We suspended it in July 1914 when the onset of World War I precipitated a domestic financial crisis. We then re-established the full gold standard in December 1914 after an aggressive policy response stabilized the financial system. This continued until we entered the war, and subsequently partially embargoed gold exports starting in September 1917. The gold standard was still in effect domestically -- meaning people could trade dollars for specie -- but not internationally. These restrictions on gold exports continued until June 1919, at which point we returned to the full gold standard. I have started from this last date, because there is no question that we were operating under the gold standard at this point. For more, read this superb Federal Reserve paper on the history of the gold standard from World War I through the Great Depression.</i><br /><br />Further, the Great Depression was caused by the monetary system where the fed could inflate even though their notes could be redeemed for gold. This system was and is condemned by libertarians and Austrians.<br /><br />https://mises.org/library/americas-great-depressionBob Roddishttps://www.blogger.com/profile/17263804608074597937noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-3733536579344562942019-01-09T13:45:09.297-05:002019-01-09T13:45:09.297-05:00Of course needlessly expensive or scarce fiat is b...Of course needlessly expensive or scarce fiat is bad.<br /><br />But it is also bad that fiat is created for purposes other than the general welfare but for the welfare of banks and the rich.<br /><br />It is also bad that the DEMAND for fiat is artificially suppressed in that citizens may not use fiat except for mere physical fiat, coins and bills.<br /><br />Fix the ethics of fiat creation and use and the moronic call for a return to the Gold Standard shall cease. Ignore the ethics of fiat creation and use and risk its return.Andrew Andersonhttps://www.blogger.com/profile/14296407661618321637noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-15496918154190913172019-01-09T11:01:33.430-05:002019-01-09T11:01:33.430-05:00Excellent assessments!
A book I found to be very ...Excellent assessments!<br /><br />A book I found to be very interesting.<br /><br />https://www.amazon.com/Keep-All-Thoughtful-Men-Economists/dp/1591144914?tag=nakorn-20hoonosehttps://www.blogger.com/profile/02907514852500776990noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-37585593803654026442019-01-09T10:50:02.161-05:002019-01-09T10:50:02.161-05:00“The gold standard limited central banks from prin...<i>“The gold standard limited central banks from printing money when economies needed central banks to print money, and limited governments from running deficits when economies needed governments to run deficits.”</i><br /><br />That is an illusion. The gold standard was a gimmick used by politicians to claim that there was “no money” for social programs. Politicians dropped their gold standard gimmick whenever they wanted to create money for war. European politicians dropped their gold standard gimmick in order to fight World War One. <br /><br />Today no country operates by this gimmick. <br /><br />It is not possible to actually run a war or a country based on the fluctuating gold market. Moreover monetary systems are what give monetary value to gold. If there were no monetary systems, then a mountain of gold would not be worth a penny, or a yen, or a peso, or whatever.<br /><br />If an asteroid sent all human survivors back to primitive conditions, then gold would be worth nothing. You can’t eat it, sleep under it, hunt game with it, or wear it as clothing.<br /><br />As for inflation, it is not caused by “printing money,” but by the ratio of the money supply to the availability of things to buy with money. If there are shortages, then prices rise. That’s inflation. The government can respond by printing more money, or else by removing money from the economy via taxation. During World War Two the rationing of consumer goods caused shortages. Meanwhile there was excess money in circulation because everyone had a job. To offset inflation, the US government had to get money out of the economy. Therefore the US government introduced the federal withholding tax, and encouraged everyone to buy “war bonds.” The government falsely told the peasants that this was necessary to “fund the war,” but the real purpose was inflation control. As always, the war was “funded” by money created out of thin air.<br /><br />Today there is inflation in housing prices because banks create infinite credit out of thin air. And since bank credit is also debt, the bankers keep the economy crippled. <br /><br />This nightmare continues because the peasants insist on it.Konradhttps://www.blogger.com/profile/01739209449391854796noreply@blogger.com