RE: If paper money was banned & silver & gold came back, what would happen?
March 2, 2015 at 9:21 pm
(This post was last modified: March 2, 2015 at 9:39 pm by Anomalocaris.)
(March 2, 2015 at 8:22 pm)H2O Wrote:(February 28, 2015 at 5:35 pm)IATIA Wrote: Our country used to run just fine without central banking and deficit spending.
What he said.
When our country ran fine without central banking and deficit spending, horse and buggy was not only fine, but state of the art too. If you want to return the country to the state of being without central banking and deficit spending, then I am confident Our country will be as competitive against other mid 19th century economies in our 21st century as it was during much of the 19th century. Incidentally, even during most of 19th century, we were not as competitive against leading 19th century economics as we likely to selectively remember from the perch of our successes in the 20th century. During most of 19th century America propsered not by successfully competing with the leading 19th century economies, but by hiding behind protectionist walls and ruthlessly exploiting a virgin continent.
(March 2, 2015 at 8:22 pm)H2O Wrote: Since you put it that way "our goods and services exceed the value of all gold on earth" then I would say we should use another material to use as a standard value system for trading so that our economy doesn't move on imaginary standards and tangible ones instead.
There is nothing tangible about the value of gold or any material. All values are in the eyes of the beholder. Being able to encourage the entire economy to adjust the perceived relative value of medium of exchange (in time, as well as across national boundaries) is a powerful tool of economic management that can clear the market and improves overall efficiency. Using gold or any other material does nothing to help this tool, it only adds friction to other transactions.
(March 2, 2015 at 8:22 pm)H2O Wrote: Makes sense but this wasn't about injecting more gold into the economy, it was about returning to a tangible value system..
There is nothing more tangible whatsoever about the value of gold than value of any other medium of exchange. It's perceived value seems more nostalgic, but is not more tangible. You commit the fallacy of equating quaintness with validity.
