Quote:
Originally Posted by dyna mo
it seems to me that ron paul's justification for going back on a gold standard is inflation, but not everyone agrees we are in an inflationary period. i don't claim to understand economics well-enough to have an opinion either way but if there's debate about it, i tend to not side with sensationalizing the issues. also, i don't see how the current world economy could be supported by the current amount of gold. especially if it comes to individuals having to own gold for transactions.
but again, it's a complex topic i haven't completely immersed myself in.
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Those in power want you to believe it is complicated. It is really quite simple. Take something that you bought. What did it cost 10 years ago? Is it more or less? More=inflation, less=inflation.
Politics is sensationalized but real economics is not. It is about the facts and deductive reasoning.
Don't pay any attention to the CPI. It's bullshit. Inflation is different for each person since each person spends their money on different things and different things change prices at different rates.
The reason for gold is so that currency actually has real value and so gov't and those in power can't cheat the economy and steal from the general public by inflating the currency.
By printing money everyone who has money has been robbed. Their money is now worth less than it was before. This has a greater affect on the poor and middle class because the rich now how to move their assets to inflation protected assets.
The amount of gold in circulation is irrelevant. It wouldn't have any effect. All prices of goods and labor would go up or down unilaterally based on the amount of gold. It is all relative. If you got paid half as much but everything is half the price has anything really changed?
Transactions don't have to be done in tangible gold, just so much that the currency is 1-to-1 with the amount of gold. You can use electronic transfers, checks, and credit cards just like we currently do.
Busts like the housing crisis are the result of fiat currency and fractional reserve systems. Gold would solve that problem. There are other issues too but that is the main thing.
I encourage you to look into the issues objectively. They are really quite simple and easy to understand. It is just that society has been brainwashed that makes it so confusing.