Gold Standard Good or Bad ?

**Rush Limbaugh** · October 11, 2007, 09:49 AM

Conclusion

Although the last vestiges of the gold standard disappeared in 1971, its appeal is still strong. Those who oppose giving discretionary powers to the central bank are attracted by the simplicity of its basic rule. Others view it as an effective anchor for the world price level. Still others look back longingly to the fixity of exchange rates. However, despite its appeal, many of the conditions which made the gold standard so successful vanished in 1914. In particular, the importance that governments attach to full employment means that they are unlikely to make maintaining the gold standard link and its corollary, long-run price stability, the primary goal of economic policy.

**Gelgoog** · October 11, 2007, 03:50 PM

bad

**Rush Limbaugh** · October 11, 2007, 09:41 PM

Wow no one has anything to say. Looks like these people did

Should We Go back to Using Gold as Money?

It covers both sides as its in debate form and their addressing an actual author .

**Lord Consul** · October 11, 2007, 09:53 PM

Fiat money is a disaster waiting to happen.

**Rush Limbaugh** · October 11, 2007, 10:07 PM

To me it looks like fiat money gives you short term stability with a crash at the end while the gold standard does not give you short stability but long term stability.

**Kanaric** · October 12, 2007, 04:33 AM

Although I agree with Rush on this i'm still waiting for the disaster.

That is one of the many reasons why the dollar is falling i believe. So many things at once are in play to screw the worth of the dollar over that a disaster is inevitable at this rate. Ridiculous debt and deficit spending, fake money, hugely unbalanced trade, and i'm sure more reasons are all a factor that will cause this. Everything to do with the economy and the way money is generally handled in this country is going to backfire one of these days. Its a train wreck waiting to happen.

**Rush Limbaugh** · October 12, 2007, 11:17 PM

Hey look what I found

1983: Ron Paul Debates Federal Reserve Governor on the gold standard 1of7

This next one is so true

1983: Ron Paul Debates Federal Reserve Governor on the gold standard 2of7

1983: Ron Paul Debates Federal Reserve Governor on the gold standard 3of7

1983: Ron Paul Debates Federal Reserve Governor on the gold standard 4of7

1983: Ron Paul Debates Federal Reserve Governor on the gold standard 5of7

1983: Ron Paul Debates Federal Reserve Governor on the gold standard 6of7

1983: Ron Paul Debates Federal Reserve Governor on the gold standard 7of7

**JP226** · October 12, 2007, 11:21 PM

Can't believe he believes in the austrian business cycle theory...

**Rush Limbaugh** · October 12, 2007, 11:55 PM

Can't believe he believes in the austrian business cycle theory...

The Fed guy is basically saying let the bankers make the rates and the money not some shmucks out there prospecting. Their problem with the gold standard is they cant manipulate it.

**-Conan the Barbarian-** · October 13, 2007, 10:41 AM

Hey JP I have a question.

Did Nixon's decision to get off the gold standard have anything to do with the stagflation we experienced under Jimmy Carter?

**JP226** · October 13, 2007, 11:54 AM

Did Nixon's decision to get off the gold standard have anything to do with the stagflation we experienced under Jimmy Carter?

No, that was more a fiscal spending issue. Keyensians don't quite understand the whole crowding out effect.

**chilon** · October 13, 2007, 12:43 PM

Originally Posted by Rush Limbaugh

Gold Standard Good or Bad ?

Unnecessary and not viable for an information based economy (what we should be working towards).

**Thanatos** · October 13, 2007, 12:58 PM

If your money ain't based off of gold, what the hell is it based off of?

**Rush Limbaugh** · October 13, 2007, 12:59 PM

Trust

**Thanatos** · October 13, 2007, 01:01 PM

Originally Posted by Rush Limbaugh

Trust

Yeah, that'll hold forever.

**JP226** · October 13, 2007, 01:09 PM

If your money ain't based off of gold, what the hell is it based off of?

What's gold based off of? It's a shiny metal. Unless you dig it out of a mountain, then it's a dirty silver color.

The technical value of dollars comes from the ability to pay you back. It's an IOU. But that's not really true anymore, that went out the window when we threw the GS away all together. Now the value of dollars is based off the demand for those dollars. The demand for those dollars is based off the true value of that dollar. It's confusing, but if this dollar is really a dollar then it's more valuable then say a lebanese pound that is a pound today and equal to a fraction of that same pound tomorrow.

It's the stability of the currency that brings so much value to it. The US has never defaulted and it is a risk free investment. Therefore so many people want dollars and that in turn boosts the strength of that dollar.

**Thanatos** · October 13, 2007, 01:14 PM

And if we were to fall on hard times?

**Sosobra** · October 13, 2007, 02:37 PM

Why gold why not platinum or HE-3? The fact that gold is consider a standard shows the backwardnesses of the idea.

Trust is a heck of alot better than oooo shiny metal factor.

**JP226** · October 13, 2007, 02:42 PM

And if we were to fall on hard times?

we'd have to have a pretty big damn bubble to hit a "correction" that would force us to fall on times that hard. ANd then it'd have to be years if not decades of falling future values. Every bust has a boom and every boom has a bust, investors know this. The interest rates would naturally fix or prevent such an occurance.

And even then the US still has the political and militarily stable bonus. Your money is and always will be safest here.

in theory it's possible, in reality it's unlikely.

**Marie Louise von Preussen** · October 13, 2007, 02:44 PM

Gold is more than just shiny metal. Platinum is shiny metal, too, for your info. What really makes a good a valuable good is how much value people give to it. Basing your currency on a valuable good, not necessarily just gold, is not an entirely stupid decision.