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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: IC720 who wrote (115933)	1/13/2024 7:29:21 PM
From: Sun Tzu	1 Recommendation Recommended By IC720 Respond to of 116791

The gold standard was a horror. It stopped working well before everyone gave up on it. Read the Reminiscences book amazon.ca to see how much stress the gold standard put on the system. Here's an example (something similar actually affected the markets back then). Say Russia gets into war. They will need their gold to pay their troops. Withdrawing it will affect whatever bank and financial system is holding their gold and will cause a market crash. What's more, Ukraine could send special forces to Switzerland or wherever to blow up the Russian gold. This would destroy the Russian economy permanently. And it would also cause permanent damage to the global economy. The gold standard is inherently deflationary. You are familiar with inflationary problems. But 100 years ago every business was concerned with deflation which was a much worse problem. And there are no fixes for that. Inflation can easily be fixed. Pass a law that any senator who has not balanced the budget during his term is not eligible for reelection. And make a similar law for the president. We can fix inflation with the political will. But the problems in the gold standard had no fixes.