5 ms·
> So, first: if the population in one country goes up, they can import more gold from elsewhere. It's a commodity after all. Unless governments ban the exporti
by throw0101a 5y ago
> So, first: if the population in one country goes up, they can import more gold from elsewhere. It's a commodity after all.
Unless governments ban the exporting of gold, which has historical precedent.
It is possible to run out of gold on which to run an economy. We know this because it has happened:
* https://en.wikipedia.org/wiki/Great_Bullion_Famine https://en.wikipedia.org/wiki/Great_Bullion_Famine
For a good history of the topic see The Power of Gold: The History of an Obsession by Bernstein:
* https://www.goodreads.com/book/show/249245.The_Power_of_Gold https://www.goodreads.com/book/show/249245.The_Power_of_Gold
We've used/tried gold and the world has moved on for good reason. There's no reason to regress (unless you want to relearn the painful lessons of the past).
> Luckily, we have and had the technology to make the gold standard work: fractional reserve banking and privately issued bank notes.
It's interesting that you bring up fractional reserve banking and Canada in the same paragraph, as Canada hasn't had reserve requirements for about thirty years now:
* https://en.wikipedia.org/wiki/Reserve_requirement#Canada https://en.wikipedia.org/wiki/Reserve_requirement#Canada
- eru 5y ago> It's interesting that you bring up fractional reserve banking and Canada in the same paragraph, as Canada hasn't had reserve requirements for about thirty years now: Yes, exactly! In the heyday of Canada's gold standard and privately issued notes, they didn't have a reserve requirement either. Minimum reserve requirements are bad for the financial system! (Sorry, not enough time to respond to the rest. Have a look at George Sergin's work, if you are interested. The reasons that countries moved off the gold standard were mostly bad, actually. However, I don't think it's realistic these days to move back onto a gold standard.)