Sunday, December 20, 2015

The Gold Standard vs. Fiat Currency

Richard Ebeling emails:

Dear Bob,

On December 18, 2015, I was the “Weekend Edition” guest on “Power Trading Radio” hosted by John O’Donnell and Merlin Rothfeld, on the theme of “The Gold Standard versus Fiat Currency.”

We discussed the history of the gold standard, how a gold-backed monetary system could be reestablished in the United States, and how gold redemption could be restored without the often-feared price deflation and depression that critics of the gold standard argue would likely accompany it.

Also discussed was the greater stability, certainty, and reliability that a money-commodity system such as the gold standard possesses in comparison to the long historical record of the inflationary monetary mischief experienced under government issued and manipulated paper, or fiat, money.

Finally, discussed was the connection between a stabile, reliable gold-backed monetary system and America’s industrial revolution in the second half of the nineteenth century that heralded the rise of the U.S. as the economic giant of the world.

And how sound money and economic freedom go and-in-hand.

The interview runs for about 30 minutes.


1 comment:

  1. Gold IS money, not 'backing'. The paper notes are just ; 1)'claim checks' for convenience in handling, and 2) for large amounts.
    Dave, WI