Overall the gold standard is a terrible measure of economic health. There are so many facets to the economy that tying the measure of economies on one rare earth metal is not only inefficient but misleading. It might sound weird but currencies really are a measure of economic health. This is reflected in their exchange rates. Without them being able to float those rates are artificially created outside of supply and demand.
For example gold doesn’t account for factors like purchasing power parity, gdp, and the handful of factors which determine a currencies strength. I’m not a huge expert on forex since I work on volatility and fixed income derivatives, but I can think of a way that you can represent relative strength between economies with the gold standard. Also I can’t think of the benefits. All economic factors we see now such as Inflation still happen anyway
The representation of relative strength between economies is fairly straightforward: the price of gold.
When the USD was based on gold, an ounce remained the same price ($30-ish) for a long time. I don't know if you lived through the inflation of the 70's, but the quality of everything made in the US declined. Even the quality of recordings in the music industry declined. This inflation hadn't occurred until we got off the gold standard.
I'm not defending a gold standard, neither am I saying that fiat currency is necessarily bad. It has worked at times. But we can't fix this election and restore a Constitutional government without addressing this issue, since it revolves around the creation and control of our currency. I don't know the best solution. Just wondering if you have ideas.
I have seen some people say that North Dakota has this figured out. I don't know the first thing about that.
Overall the gold standard is a terrible measure of economic health. There are so many facets to the economy that tying the measure of economies on one rare earth metal is not only inefficient but misleading. It might sound weird but currencies really are a measure of economic health. This is reflected in their exchange rates. Without them being able to float those rates are artificially created outside of supply and demand.
For example gold doesn’t account for factors like purchasing power parity, gdp, and the handful of factors which determine a currencies strength. I’m not a huge expert on forex since I work on volatility and fixed income derivatives, but I can think of a way that you can represent relative strength between economies with the gold standard. Also I can’t think of the benefits. All economic factors we see now such as Inflation still happen anyway
The representation of relative strength between economies is fairly straightforward: the price of gold.
When the USD was based on gold, an ounce remained the same price ($30-ish) for a long time. I don't know if you lived through the inflation of the 70's, but the quality of everything made in the US declined. Even the quality of recordings in the music industry declined. This inflation hadn't occurred until we got off the gold standard.
I'm not defending a gold standard, neither am I saying that fiat currency is necessarily bad. It has worked at times. But we can't fix this election and restore a Constitutional government without addressing this issue, since it revolves around the creation and control of our currency. I don't know the best solution. Just wondering if you have ideas.
I have seen some people say that North Dakota has this figured out. I don't know the first thing about that.