[ghostrider]

If a central bank acts responsible there is no need for any gold standard or whatever.

That two letter word, "If" throws everything into the world of liberal purist theory. Jimmy Carter was also a liberal purist. He said that if people treat one another with respect, there is no need for wars! He found that to be a basis for disarming so that peace would take hold of the world. Liberal purist theory works good in the movies, in school books and for political yarns. We all know that the world is not the liberal utopia envisioned by so many of our "intellectuals," but rather a place of devilish cut throat competition and treachery. "If a politician (or banker)" will bust a liberal dream every time.

[Nick Danger]

That two letter word, "If" throws everything into the world of liberal purist theory.

The man's comment had to do with a gold standard. Your reply takes a figure of deserved ridicule, Jimmy Carter, who has nothing to do with this discussion, and holds up his idealistic views on war as an example of what's wrong with saying that if central bankers act responsibly, there is no need for a gold standard.

As a form of argumentation, that really sucks. It is not just unpersuasive, it is "slick argument from a salesman" of the sort you were decrying yourself only 3 notes ago.

Try again.

[wu_trax]

look, two out of three big central banks managed to keep their currencies value stable, one didn't. does that mean that the whole system doesn't work or that some people at the Federal Reserve didn't exactly know what they are doing (I'm not even sure what they have done wrong, during the last stock bubble they hardly had any choice, but to increase the amount of dollars in circulation, there were just too many people who wanted them.)?

Other than that, i hear a lot of people here complain about China pegging its currency to the dollar. if we would still have the gold standard like in the time after ww2, every currency would be.

And even if the current system doesn't work perfectly, would you rather have inflation / deflation purely at random without any possibility to control the amount of money in circulation?