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To: Toddsterpatriot
Proponents of a gold standard are advocates of deflation.

Not really. Under the gold standard, the value of money stayed relatively stable from the late 1700's through the advent of the FED in 1913. There were spikes and dips, but the value of the dollar was pretty much the same after more than 100 years. That's certainly not so now. Since the advent of the FED less than 100 years ago the value of the dollar has dropped by 95%, most of it since 1971 when Nixon closed the gold window and dropped all pretense of a dollar backed with anything real.

Even if a return to the gold standard DID result in some price deflation, that's hardly a concern next to the FED's history of inflation. If you like stable money value, you have to prefer the gold standard... and ending the FED!

Do you have a mortgage? You just adjusted the volume of money.

Under a gold standard, with fractional reserve banking limited by market forces, mortgages would be harder to come by, no argument there.

But the flip side is that credit crunches wouldn't devastate folks life savings, or put home owners under water, or lead to fascist "too big" government bailouts.

Not to mention that the federal government would have to live within it's means. Returning to a gold standard is worth it just for that reason alone.

154 posted on 09/09/2009 3:08:44 PM PDT by Swing_Thought (The doorstep to the temple of wisdom is a knowledge of our own ignorance. - Benjamin Franklin)
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To: Swing_Thought
Not really. Under the gold standard, the value of money stayed relatively stable from the late 1700's through the advent of the FED in 1913.

LOL! Yeah, inflation spikes and big deflation = stable. LOL!

Even if a return to the gold standard DID result in some price deflation, that's hardly a concern next to the FED's history of inflation.

My left arm is broken, quick, break my right arm. LOL!

If you like stable money value, you have to prefer the gold standard...

If you like deflation, the gold standard is for you.

Under a gold standard, with fractional reserve banking limited by market forces, mortgages would be harder to come by, no argument there.

Even under a gold standard, your mortgage just increased the money supply.

But the flip side is that credit crunches wouldn't devastate folks life savings

You need to do more research on the panics on the 1800s.

156 posted on 09/09/2009 9:26:15 PM PDT by Toddsterpatriot (Math is hard. Harder if you're stupid.)
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