|
Pittsburg, Kansas | First, I am not a proponent of the gold standard.
And the gold standard did work, and when it was blamed for not working it was because governments went off the standard to fight a war they knew they could not sell to the public through increased taxes. Then in the case of England when they tried going back on it, after inflating the money supply out the wazoo to fund the war, they tried to go back on the standard at pre war parity, which had the effect of deflating the currency supply to pre war levels. The proper way would have to revalued the currency based on the then currency in circulation in relation to the gold held. This was a failure of leadership, not the gold standard.
Fiat money would work just fine as long as those managing the system manage it honestly and prudently. But deficit spending a trillion dollars a year in a 16 trillion economy is neither prudent nor honest. Currency debasement is nothing but a stealth tax on the population through reducing the purchasing power of their money. When wages rise at a lower rate than the monetary inflation, it is a government stealth devaluation of peoples labor.
John
Edited by John Burns 1/21/2017 08:35
| |
|
huge jump in US national debt
