Richard Ebeling emails:
I have a new article on the “EpicTimes” news and commentary website on “‘Paper Money versus the Gold Standard.”
The media and news pundits may focus on the daily zigs and zags of Federal Reserve monetary and interest rate policy, but the real and more fundamental question is whether government should have control over the monetary and banking system of the United States.
The history of government control and management of the monetary system is one of inflationary and business cycle disaster, which as been made worse over the last one hundred years with the end to the gold standard and the instituting of pure paper money systems.
The benefit of a commodity-money system such as the gold standard is that it removes government from any direct control over and manipulation of the amount of money in the economy. It also eliminates or at least reduces the monetary central planning mischief that has caused the booms and busts of the business cycle, and generated severe bouts of price inflation.
A gold standard can work like a form of a “monetary constitution” limiting the powers of government and their central banks over the monetary printing press. But looking to an even longer-run, the real goal of advocates of personal and economic liberty should be the total separation of government from money through a fully private and competitive system of free banking, with the free market determining all aspects of the monetary and financial system.