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If you're so inclined, can you comment on what you think Ron Paul was getting at when he used the phrase "Honest Money"? I'd like to hear what an Economist has
by 0x445442 7y ago
If you're so inclined, can you comment on what you think Ron Paul was getting at when he used the phrase "Honest Money"? I'd like to hear what an Economist has to say about this.
- tomrod 7y agoI've actually not heard his use of the term. Can you provide a reference to see the context?
- 0x445442 7y agohttps://www.amazon.com/Pillars-Prosperity-Markets-Private-Property/dp/1933550244 https://www.amazon.com/Pillars-Prosperity-Markets-Private-Pr... https://www.lewrockwell.com/1970/01/ron-paul/bring-back-honest-money/ https://www.lewrockwell.com/1970/01/ron-paul/bring-back-hone... https://youtu.be/IF5pwDCpz4s?t=450 https://youtu.be/IF5pwDCpz4s?t=450
- gumby 7y agoHe uses the term to describe using gold and silver as currency instead of notes issued by a central bank. The ideological point is that people are fallible (or in his view manipulate) and some seemingly independent metric is superior. This ignores the empirical, historical evidence of the inflationary/deflationary boom/bust whipsaw of the gold standard eras (19th century in particular) which were hugely destructive and ruinous. More distressingly it also ignores the fact that money is a signaling mechanism and when the amount in circulation is out of relation to economic activity the economy breaks down. Yes, humans have a hard time figuring out what the level of economic activity is, but I am quite sure that gold strikes are not correlated with the production costs of iPhones and t shirts.