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How about addressing the structure of production in relation to economic growth?
Because that wasn't the topic that I was addressing. Instead of developing a stramman argument and then trying to hide under the oldest internet canard around (I don't have time to teach you blah, blah, blah) you could attempt to address the point. Is there enough gold to every dollar, euro, yuan, that is produced by the global economy as Bernarke pointed out. The answer is simply no unless your gold standard is based upon some fractional basis which I would assume defeats the whole purpose.
I think that you are going to make my ignore list in record time.
The problem here is that these banks do hold gold and the shadow banking (govt et al) does use it. So Bernanke seems to lose some credibility there to me.
However, the idea behind gold is to limit the supply of currency in a way that is not as easily abused as govt fiat. Decentralization and who controls the amts of the currency are important issues. I can see issues with a gold standard. I also certainly see issues with our current system.
The Secret of OZ covers some interesting ground here, whether or not you share the same view or not.
Because that wasn't the topic that I was addressing. Instead of developing a stramman argument and then trying to hide under the oldest internet canard around (I don't have time to teach you blah, blah, blah) you could attempt to address the point. Is there enough gold to every dollar, euro, yuan, that is produced by the global economy as Bernarke pointed out. The answer is simply no unless your gold standard is based upon some fractional basis which I would assume defeats the whole purpose.
I think that you are going to make my ignore list in record time.
I did address the point....And I didn't straw man....
I said, you oversimplified. And you did....
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Originally Posted by ovcatto
In order to have a gold standard the total of all gold reserves would have to equal $63.17 trillion (GWP). In 2010 the entire amount of gold mined amounted to $9.8 trillion or 16% of global economic activity. So either one of two things have to happen, either you better dig up some more gold or devalue every currency in the world.
Essentially, all you said was "Either we mine more gold to match the ruthless and irresponsible monetary administration of the world over the past 80 years......OR....devalue the currency"
OK, do you understand that anybody taking the stance in favor of the gold standard is holding a position that is INHERENTLY favoring the devaluing of the worlds currency.
Not one modern Austrian that I've read....EVER..has advocated we mine gold proportionate to the amount of currency in circulation today.
Its a 100% debt backed currency, It has nothing but debt obligations that can be printed backing it. Its toilet paper.
Sure, bonds are toliet paper, and gold is a shiny rock. Everybody needs to wipe, right?
Quote:
Find me any proof that US growth was less robust when it was on a gold standard (or de facto gold standard) until 1973 than it was after that date...
That entire premise is ridiculous. Maybe you oughta find me proof that U.S. growth was more robust when it was on a gold standard.
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Are you honestly trying to tell me that if i offered you $100k in USD today or $100k in Gold today that you could only access upon retirement, that you would take the $100k USD?
That's a false comparison; only an idiot would hold cash for retirement. You use the cash to buy ownership of companies, (for example) that you can sell later.
A useful comparison would be: $100k in U.S. dollar denominated stocks and bonds, vs. $100k in gold. Nothing wrong with holding metals, but for me I'd take the USD denominated stocks and bonds.
Cash is not supposed to be a long term store of value. That is cave man stuff, not the purpose of currency in modern society. You're evaluating it as an investment, rather than a medium of exchange.
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