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> The gold standard reinforces economic discipline The gold standard actually doesn't do anything because no nation on Earth uses it any more. We have lots of

by uses 5y ago

> The gold standard reinforces economic discipline The gold standard actually doesn't do anything because no nation on Earth uses it any more. We have lots of evidence that when it was used, it created instability and economic chaos. Nobody who seriously studies economics things a "return to the gold standard" is a good idea. Here's an example poll of people who have studied economics at the highest level for their entire lives: https://www.igmchicago.org/surveys/gold-standard/ https://www.igmchicago.org/surveys/gold-standard/ Conspiracy theories about the gold standard are peddled on youtube/twitter because it's easier to blame things on conspiracy theories than to understand complex topics. Kind of like climate change or covid.

seibelj 5y ago
I’m not a conspiracy theorist, I’m a believer in Austrian economics. This is a a different view of economics from mainstream economics, which is universally Keynesian / Monetarist. The way I think about the world and manage my investments is shaped by my view of the interplay of a central planner trying (very poorly) to manage the economy, which is by its nature impossible to model. The gold standard prevented governments (somewhat) from inflating their currencies. The reason we say “gold standard” is because the pound was convertible into gold until WW1. With the outbreak of the war, the bank had a rush on their reserves, which they had printed far more notes than they had available. The solution was to ban the conversion of paper into gold, seize all additional gold, and force all international colonies to back their currencies with pounds and USD rather than gold. This is not a conspiracy, it’s simply the history of how we went from a gold standard to the fiat standard. There are good reasons for why this happened. I just simply believe it’s a mistake and view the current strangeness in our global economies as a side effect of all the odd characteristics of a system where the lender of last resort (central banks) can print money at will. It’s a very strange system and I think it is bad. However I still myself must live in this system and think, reason, and invest accordingly. https://www.natwestgroupremembers.com/banking-in-wartime/banking-business/august-1914-the-longest-bank-holiday.html https://www.natwestgroupremembers.com/banking-in-wartime/ban...
- gamblor956 5y ago
  You need to re-read your history of the gold standard. Yes, it was ended temporarily during WWI...and brought back a few years later. This resulted in massive deflation, and caused the Great Depression (and the bank runs preceding and during the Great Depression). Ironically, while the "Austrian School" blames credit for the Great Depression...Austria's banks were the first to fail, because Austria didn't move off the gold standard as quickly as its neighbors did, and Austria was one of the hardest-hit countries during the Great Depression.
  - seibelj 5y ago
    Completely disagree with the causes of the Great Depression, which is a very complex topic and primarily the result of easy money, a stock market bubble, subsequent trade barriers and tariffs, and the utter mismanagement and idiocy of governments worldwide. But again, I have a radically different view of economic history from the mainstream, which I accept and am ok with.

by uses 5y ago

seibelj 5y ago

I’m not a conspiracy theorist, I’m a believer in Austrian economics. This is a a different view of economics from mainstream economics, which is universally Keynesian / Monetarist. The way I think about the world and manage my investments is shaped by my view of the interplay of a central planner trying (very poorly) to manage the economy, which is by its nature impossible to model. The gold standard prevented governments (somewhat) from inflating their currencies. The reason we say “gold standard” is because the pound was convertible into gold until WW1. With the outbreak of the war, the bank had a rush on their reserves, which they had printed far more notes than they had available. The solution was to ban the conversion of paper into gold, seize all additional gold, and force all international colonies to back their currencies with pounds and USD rather than gold. This is not a conspiracy, it’s simply the history of how we went from a gold standard to the fiat standard. There are good reasons for why this happened. I just simply believe it’s a mistake and view the current strangeness in our global economies as a side effect of all the odd characteristics of a system where the lender of last resort (central banks) can print money at will. It’s a very strange system and I think it is bad. However I still myself must live in this system and think, reason, and invest accordingly. https://www.natwestgroupremembers.com/banking-in-wartime/banking-business/august-1914-the-longest-bank-holiday.html https://www.natwestgroupremembers.com/banking-in-wartime/ban...

gamblor956 5y ago
You need to re-read your history of the gold standard. Yes, it was ended temporarily during WWI...and brought back a few years later. This resulted in massive deflation, and caused the Great Depression (and the bank runs preceding and during the Great Depression). Ironically, while the "Austrian School" blames credit for the Great Depression...Austria's banks were the first to fail, because Austria didn't move off the gold standard as quickly as its neighbors did, and Austria was one of the hardest-hit countries during the Great Depression.
- seibelj 5y ago
  Completely disagree with the causes of the Great Depression, which is a very complex topic and primarily the result of easy money, a stock market bubble, subsequent trade barriers and tariffs, and the utter mismanagement and idiocy of governments worldwide. But again, I have a radically different view of economic history from the mainstream, which I accept and am ok with.