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To: fedhead who wrote (51733)	12/27/2000 7:48:22 PM
From: Archie Meeties	Read Replies (1) \| Respond to of 436258

Plenty of gold around to support a new gold standard - just need to value it in the 100's of thousands. -g-

To: fedhead who wrote (51733)	12/27/2000 8:05:52 PM
From: pater tenebrarum	Read Replies (4) \| Respond to of 436258

i'm not an advocate of returning to a strict gold standard. but one of the advantages of the gold standard was that they couldn't print money willy-nilly, which is what they are doing now. essentially robbing future generations, as well as us. in fact the printathon of the '90's compares only to the Mississippi bubble in size and scope. it's truly breath-taking. btw, the obvious solution to there not being 'enough' gold is to revalue it from time to time. in any event i believe it is way past time to look for something other than the bubble like credit and money creation we have seen in recent years. i suppose however that in order to achieve change the current pyramid must first implode in a manner that gets noticed. which if my misgivings about the situation are correct it will do in due time. it matters little in connection with this if the bubble lives on for another little while or not. it's a big picture issue...you can't have an economy live on paper and paper and more paper alone. as mentioned before, Richebacher has calculated that every dollar in GDP growth this year required roughly 4,50 bucks in fresh credit creation. it is obvious that such a skewed system is unsustainable in the long run and doomed to fail.

To: fedhead who wrote (51733)	12/28/2000 1:13:52 AM
From: Don Lloyd	Respond to of 436258

Arindo - I thought one reason the wrld went off the gold standard was because there was not enough gold in the ground to support the growth in economic activity. (At least thats what they say in text books). How would returning to the gold standard solve that problem ? What you can read in the text books is every bit as credible as what you can read in the Sunday Supplements or hear on the network news, just delayed by decades. Actually, any reasonable amount of gold can support any reasonable level of economic activity. A true gold standard, including 100% backed and trustworthy gold certificates and non-gold tokens would simply adjust in goods exchange value to reflect the balance of the desire to hold gold claims for future purchases and the desire to make present purchases. The opponents of the gold standard alternately make the contradictory claims that gold would be too scarce and then that it would be too abundant. The test of any monetary standard is that it not be subject to arbitrary short or long term political manipulation. No monetary standard is ideal and any hope of a long term precise store of purchasing power is utterly impossible, even if it could be measured. If it were true that gold could not be mined fast or cost effectively enough to keep its purchasing power from rising, the perceived problem of falling prices of goods expressed in ounces of gold is simply a parallel effect to that of the ever increasing unit productivity of goods production in a healthy economy, offset by the entry of new goods into the market. The problem with this perceived 'deflation' is not in the monetary system itself, but rather in the government intervention in the labor markets which ossifies wage levels through the agency of minimum wage legislation and union preference laws, forcing real wages above a market clearing price, and shutting down one labor intensive industry after another, creating unemployment in its wake. Regards, Don