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To: DannyTN

Yes, that’s true, but most of those were caused by fluctuations in value due to new discoveries of gold or silver that were occurring at the same time, since we were still in the age of colonization.

Most of the fluctuations in value of gold nowadays are due to speculators using it as a hedge against inflation of the fiat currencies, as industrial demand is pretty steady, and we do not find major deposits much anymore.


9 posted on 02/15/2018 2:03:49 PM PST by Boogieman
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To: Boogieman

That’s true. And we certainly don’t want our currency to be at the hands of speculators. A gold standard would cause that. Soros would love that.

And with China the largest gold producer, we don’t want them in control of our currency either.

Without new discoveries, the supply of goods grows faster than the supply of dollars, causing deflation, and deflationary depressions. Depressions would be come the new normal if we went back to the gold standard.

Some people think the gold standard would act as a brake to reign in congressional spending. That’s not true. Congress can promise that your kids will pay other countries in gold for what they borrow today, just as easily as they promise your kids will pay fiat currency.
And every time there was a crisis, Congress moved to debase the currency even when we were on the gold standard.


20 posted on 02/15/2018 2:33:14 PM PST by DannyTN
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