Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: Ramius
A bigger disaster would be shackling the price of a dollar to some amount of metal.

I can name example after example of unlimited fiat money / easy credit systems collapsing in utter ruin, often leading to violent revolution, dictatorship, starvation etc.

Against that, I would posit the American 19th Century, when we tamed a continent, crisscrossed it with railroads, built a world beating industrial base and so on.

Yes, it was far from perfect, but it never collapsed into ruin, riot, revolution and dictatorship. Just look at American progress across that century!

And it did so all while "shackled to metal."

46 posted on 12/01/2005 11:41:11 AM PST by Travis McGee
[ Post Reply | Private Reply | To 44 | View Replies ]


To: Travis McGee

You posted this claim on other threads. Perhaps you are unaware that the railroad expansion was financed by BRITISH capital until around the Civil War. By then Greenbacks were part of the money supply plus new deposits of gold had increased gold stocks and the money supply. Without those serendipitous discoveries the economy would have continued the stagnation resulting from Jackson's refusal to recharter the Second Bank of the United States. That foolish action plunged the US into a twenty year depression.

Gold will never again by a monetary instrument. Anymore than sailing ships will carry freight across the seas. Both are obselete.


55 posted on 12/01/2005 12:16:41 PM PST by justshutupandtakeit (Public Enemy #1, the RATmedia.)
[ Post Reply | Private Reply | To 46 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson