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To: richalessi
Lot’s of price stability under the gold standard. LOL!
61 posted on 07/19/2007 10:36:27 AM PDT by Toddsterpatriot (Why are protectionists, FairTaxers and goldbugs so bad at math?)
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To: Toddsterpatriot

The problem historically with using gold as money is that it was combined with fractional reserve banking. This meant that banks printed up more receipts for gold than they had in the vault (same thing they do today with the $US and fractional reserve lending). This causes the boom and bust business cycle of inflation and deflation. It doesn’t mean gold is changing value.

www.mises.org/books/desoto.pdf

This book does a great job of summarizing 500 years of world banking history. It is interesting to see that the same problems recur over and over each generation.


67 posted on 07/19/2007 10:53:01 AM PDT by richalessi
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