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The fact that gold and silver’s value is really just as arbitrarily assigned as the value of anything else is usually also overlooked.
by JoBrad 6y ago
The fact that gold and silver’s value is really just as arbitrarily assigned as the value of anything else is usually also overlooked.
- chii 6y agoIt's more that the amount of gold and silver cannot be manipulated as easily as paper/fiat money. Proponents of the gold standard, at heart, simply does not trust the authorities to set fiat policies. Sometimes, that's a correct assessment (ala, Venezuela). But in the US, and other developed countries, the central banks are fairly transparent, and at least tries to keep to their mandates.
- JoBrad 6y agoI’ll grant the “as easily” part, but also counter with diamonds and China’s influence on the availability of rare earth elements.
- imtringued 6y agoI personally don't believe that the problem is with the currency. The problems lie deeper. If fiat mismanagement is all it took to ruin an economy the USA would be suffering from hyperinflation by now. The truth is that these countries suffer from structural problems like food imports and petroleum exports that have dropped in value. If they were able to produce their necessities on their own they wouldn't be such problematic countries.