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To: justshutupandtakeit
While the founding fathers prevented the States from issuing paper money they did not place the federal government under the same restriction.

No but it did grant the responsibility to Congress and the Coinage Act of 1792 established a silver standard.

Gold as money...would have to increase by at least a 4% rate for a growing economy.

Nope. A growing economy does not need more money. A constant money supply with increasing purchasing power will do the trick.

132 posted on 07/24/2002 1:05:53 PM PDT by Deuce
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To: Deuce
Bump.
136 posted on 07/24/2002 1:10:27 PM PDT by headsonpikes
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To: Deuce
A silver standard has the same disabilities as a gold standard and bimetallism has several other problems as well that make it as unreliable and impractical as a gold standard.

The only way the purchasing power can increase is through deflation or increased productivity. The former screws debtors and enriches creditors producing class warfare difficulties. The latter can only occur through technological change which is not constant.

Only after the Civil War did we see an growing economy and deflation when the U.S. reduced the MS by retiring Greenbacks issued during the war. Normally periods of deflation are periods of depression/recession not growth so increased MS almost always produces growth.

Purchasing power is inversely related to price increases.

Your objection is historically wrong.
141 posted on 07/24/2002 1:20:16 PM PDT by justshutupandtakeit
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