Limiting the money supply on the basis of quantity of some arbitrary metal is in no way creating a 'natural' interest rate in the economy. Gold acts as an 'ind

Limiting the money supply on the basis of quantity of some arbitrary metal is in no way creating a 'natural' interest rate in the economy. Gold acts as an 'independent, non-political' arbiter, but it's nowhere near 'natural'. How does the discovery of a lot of Gold, somewhere on the planet, related to the 'natural' productivity and growth of a nation? There's no such thing a 'natural' interest rates - we have to decide how much currency we want in circulation, and we try to use 'objective rules' to do that, and try to keep that system as far away from the Political System as possible. But since 2008, we are definitely playing with fire in terms of the funny business and 'breaking of our own rules' we are doing at the Fed, i.e. by accepting crap mortgages as collateral etc..