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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Robin Plunder who wrote (99542)	11/9/2008 5:36:11 PM
From: bart13	Read Replies (4) \| Respond to of 110194

We don't have a gold standard now and haven't had one since 1933 or 1971. It failed, by definition - its no longer around. Lots of other examples exist, like Rome. My point is not that a partial or full gold standard doesn't have many good things going for it, its that the problem is not with the standard but rather with how its controlled and manipulated due to vested interests and less than ethical people and power/control freak type people etc. The difference between now and thousands of years of history are the population & productivity mismatch issues that have already been noted. Do you deny that population and productivity are growing faster and can grow much faster than gold available for monetary system backing? What happens when, not if gold can be created in volume, ala "alchemy"? I just saw an announcement today for example that body parts can now be regrown: canada.com

To: Robin Plunder who wrote (99542)	11/9/2008 6:54:41 PM
From: Hawkmoon	Read Replies (2) \| Respond to of 110194

so far you have not fleshed out examples in which a gold standard has failed... Prime example.. The civil war when Lincoln realized that only the issuance of "Greenbacks" would provide the necessary financial resources necessary to wage that war. Second example.. England and World War I: en.wikipedia.org And then Churchill finally agreed to return England to the pre-war priced gold standard in 1925, which led to a deflationary spiral that culminated with the 1929 crash: As had happened after previous major wars, the UK was returned to the gold standard in 1925, by a somewhat reluctant Winston Churchill. Although a higher gold price and significant inflation had followed the wartime suspension, Churchill followed tradition by resuming conversion payments at the pre-war gold price. For five years prior to 1925 the gold price was managed downward to the pre-war level, causing deflation throughout those countries of the British Empire and Commonwealth using the Pound Sterling. Hawk