“The growth of supply of gold money in the long run should be sufficient to meet the needs of a market economy.
Why, because you say so? “
No, because that’s what happens in a free market, Forrest.
“The depression of 1920-1921 lasted for about 18 months
What? A depression while we were under the free market gold standard? “
A depression without a bankster bailout, but still WITH fractional reserve banking. Recessions are the market’s way of sorting out malinvestment.
We had sufficient gold to meet demand? You have any backup for your feeling about that?
A depression without a bankster bailout, but still WITH fractional reserve banking.
Fractional reserve banking under the gold standard? Shocking!
So when gold supply increases 1% a year and the economy grows 3% a year, does that cause any problems? Or would we be just fine even if the money supply didn't grow at all?