So would you be in support of Dr. Paul’s plan of going back to the Gold Standard?
Going back to the gold standard is totally impossible. There is a finite amount of gold in the world, I think the figure I saw was something along the lines of 4-5 trillion dollars worth. That is less than the value of our cash on hand in this country, much less the rest of the world.
Things other than gold hold value. Land does, production does, other resources such as timber, oil, steel all hold value. Tie money to a limited resource and you limit the ability to grow markets and purchase goods an services.
As it is you are left with a simple problem, hyper inflate the value of gold or hyper deflate the value of the dollar. And you will have to do this world wide all at the same time. This does not even address what you do with the current excess US dollars. We go back to a gold standard there is going to be more currency out there than there is gold. How do address that, pull money out of the economy? Who do you take it from?
It is just completely beyond the realm of reality and a very bad concept.
What sounded good in 1800 is bubpkis in the 21st century, the ability to produce and the value of that production has far exceeded the value of the worlds gold reserve.
It makes a quaint slogan that plays to our current frustrations, but little else.