(September 9, 2021 at 12:31 pm)Nomad Wrote: Gold isn't any good for trust*. It's just a shiny metal with little intrinsic use or value. The successful currencies are those that have a strong economy and proper tax base backing them up.
* For example, gold destroyed the Spanish empire, because Spaniards lost trust in its value very quickly once the American gold mines got up and running. Gold also destroyed the western economies after the Wall Street crash because people began to realise that a country that had a commodity backed currency couldn't control the value of that currency.
But you have to understand why the Spanish lost trust in gold (and silver). It was because so much of the precious metal was mined/produced cheaply in the Americas and then flooded the market back home. That is precisely the same thing as any country overprinting money, creating hyper inflation. This isn't because money is made of gold or tin or dried leaves, it's all about demand and supply. For that matter, inflation can occur in countries with strong economies and a strong tax base. It happened here in the US in the 80's.
And I think you are oversimplifying the causes of the great depression. There were numerous conditions that contributed and terrible FED monetary policies are now considered a significant factor.
Why is it so?
~Julius Sumner Miller
~Julius Sumner Miller