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Quote by: Night  It seems to me even many leading economists don't understand that gold has little more intrinsic value than a paper currency note. Gold itself represents value, but does not contain it...same as a paper note.
It would be impossible to get back on the gold standard. Inflation isn't always a bad thing either... |
Quote:
Quote by: Night I misspoke.
I should have said this:
Gold certainly does possess an intrinsic value as a commodity. However, the price of gold is sky-high compared to what it should be. If tons of gold were not locked up at Fort Knox or other reserves around the world, the price of gold would probably only reach 10% of it's current value.
Furthermore, world production of gold far exceeds it's practical use in electronics and jewelry.
Gold would not be a practical currency in our modern economy for many, many reasons. And gold is still subject to dramatic changes in value which would jerk the economy up and down... |
This. Until the OP understands this, the discussion is going nowhere.
Furthermore, anyone who seeks a return to the gold standard is kidding themselves if they think that such a standard will be subject to any less tinkering than today's standard. Explain to me why notes backed in gold are any more stable than anything else, when the Congress (or their appointees, in whatever would replace the Fed) can say that $1 is worth one ounce of gold one day, and half an ounce of gold the next day.
It would solve nothing. Absolutely no difference whatsoever.