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To: mnehring
No matter whom is in possession of the resource, moving to a standard where you are dependent on that resource means that you are in a position to be held economically hostage by those who hold the resource (see Oil situation).. It is one of those reasons why I have never jumped on the Gold Standard bandwagon.. It would be a good alternative IF we first make ourselves more independent in our supply of the resource.

I'm a fan of Ron Paul's and Peter Schiff's views but I don't they take that into consideration when pushing the gold standard. In other words, I totally agree with you.
25 posted on 03/30/2009 2:05:16 PM PDT by randomhero97 ("First you want to kill me, now you want to kiss me. Blow!" - Ash)
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To: randomhero97
They generally never address the important 'how' part in any speeches or legislation. You can't accomplish anything if you don't deal with the how's. A lot of folks try to say that countries who have fiat currency never survive, but the fact is, neither do countries who have currencies based on a single commodity, it is just too risky to put all your eggs in one basket. It is why I like Milton Freedman's monetarism approach that is somewhat down the middle, currency based on the total production, but highly regulates the Fed's actions to only increase currency at a set rate below natural inflation- but reserving some power in the event of a real outside emergency (a national security fail-safe)

This way the currency is based on production, not debt, and the currency value isn't used as a way to socially engineer the economy. It is a harder currency. I've always been under the opinion a single commodity backed currency would only work in a closed system.

27 posted on 03/30/2009 2:15:33 PM PDT by mnehring
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