Explain Like I'm Five is the best forum and archive on the internet for layperson-friendly explanations. no comments yet. [data source] [] Why aren’t we on the gold standard now? The gold standard forces us to realize that if we eat our cake in the present we can no longer count on it for future consumption, but the current financial system makes it relatively easy for politicians along with the Federal Reserve to create the illusion that we can have our cake and eat it too. The gold standard hands control of your currency to whomever has surplus gold to sell, and you have to have a way to get it from them. November 15, 2010. All 8 ingredients in this get-buff-quick powder, explained (yep, even acesulfame potassium) We’re often told that you should never eat anything if you don’t recognize everything on the ingredients list. This is a good answer. This is the opposite problem as above - nobody will make loans because the money will be worthless when the final payment is made. A gold standard does not place some artificial limit on the supply of money, nor is the supply of money constrained to the output of gold mines. It is because the government controls the currency that we have a stable dollar. The gold stocks ran low enough that he had to twist the arms of the bankers to get access to a larger supply. This is what is happening with the Euro and Germany right now. I know it is a discredited system, but having never studied economics, I don’t understand why. Explain Like I'm Five is the best forum and archive on the internet for layperson-friendly explanations. Question: Why is the gold standard such a bad idea? You cannot increase the value of your currency by destroying some, or decrease it by printing more when needed if you use the Gold Standard as your currency is tied to a physical volume of Gold. In a gold standard system, a given amount of paper money can … Paper money was just a convenience that was represented by gold. The practice of awarding a post is referred to as “gilding.” Gilded posts and comments are typically more visible and receive more upvotes. ELI5: Why is the gold standard bad? Someone has to build a big vault to put it in, install security systems and hire guys to stand around and guard it. This didn't matter in the past, because economy were growing slowly, but this isn't the case today. Fed's Powell explains why a return to the gold standard would be so damaging to the economy. It's only 1/10th or so of the world's economy! Why the Gold Standard Is the World's Worst Economic Idea, in 2 Charts. As the dollar's value rises, those holding debt instruments are benefited. When this happens deflation and economic contraction occurs. Economics. The other reason (that you touched on) is that the government has less control over the value of the dollar because of the fluctuation in the price of gold. Our current monetary system is complex and unfortunately we have came a long way from a bar of gold being the value behind our money. But there's still 1,000 dollars, only for 150 people now. In warning about the danger of a return to the gold standard, Krugman is certainly right that the gold standard was and could again be profoundly destabilizing to the world economy, but I don’t think he did such a good job of explaining why, largely because, like Ben Bernanke and, I am afraid, most other economists, Krugman isn’t totally clear on how the gold standard really worked. First: the obvious. In addition to the stuff listed here already, there are a few other important points to remember about the gold standard. Companies don't have investment to build a new factory, people have higher interest rate for buying an house so less people buy them, etc. Basically, the economy grow too fast for the amount of gold we have. by: Cam Hui, CFA. then a dollar's value rises to the detriment of anyone holding debt. The return of the gold standard came with advantages and disadvantages for distinct groups of people. There is a relation of supply and demand between wealth and currency. Don't Panic! As a country it is not great to be in a position where a mine collapse in East Fuckistan can blow up your economy. Today most developped country have 70-80% of their economy in services, this grow the economy fast. So why is deflation bad? Published Wed, Jul 10 2019 12:24 PM EDT Updated Wed, Jul 10 2019 2:33 PM EDT. In your Whole are the Findings but fascinating and I think, the is probably also with you be so. In addition to what everyone else is saying, the arguments for the gold standard often say that currency will be backed by gold. Ive heard people say that it would decrease the amount of money flowing in the world but wouldnt that be a good thing in the long term? And the driver of activity (see also: employment) in the economy is spending. Naturally are the in small number of occurring Reviews and the product can be each different strong work. It's bad because it's an absolute cap on the number of dollars that can be in circulation. By using our Services or clicking I agree, you agree to our use of cookies. The demand is the wealth, because the more wealth you have the more you want to trade it and the supply is the currency, because you need it to trade your wealth. This was one of the factors that made the Great Depression so bad -- the government had no mechanism to adjust money supply as a tool to help the economy improve. Saying that X$ is worth X ounces of gold doesn't necessarily translate into everyone holding gold instead of cash right? Because it makes it impossible to control the value of your currency if you can't control the value of gold. The value of your currency grow and this push people to keep their money instead of investing it, which limit economic growth. You have that backwards; you're describing the destruction of currency because of inflation. Because then nobody will take loans. Because then nobody will take loans. Some people like the gold standard because it means the money is actually worth something inherently (it's worth so many ounces of gold), and it means that the government can't mess with the money supply on a whim. As a way of venting, I now list some arguments why Grant is a moron. Some people, specifically the ones who want a gold standard, think this is a good thing, not a bad thing, so really the disagreement is about whether the government should be controlling the money supply. That is certainly a problem since having more wealth is better than less wealth. Why the gold standard is bad. The volume of gold required to back the US economy is tremendous. If the money supply is tied to gold, and then a lot of gold is found somewhere, then the money is worth less because, well, gold isn't so rare anymore. Considering that the amount of gold in the world (at $1250 an ounce) is only worth about $7.5 trillion... that is only about 1/3 of the size of the US economy! Gold is suppose to be used in a raid array. This lead most currency Blocks to base their economy on Trading itself since its a lot more flexible and values your Nation's capacity to produce goods, instead of valuing a precious metal. ELI5: Why is the gold standard bad? The interest rate that links entrepreneurs decisions to the supply of real savings is one of the most important feedback mechanisms in a free economy. So if the Fed wants to print more money to spur growth or decrease the amounts in circulation to stall spending, it is still based off of a shiny metal that the US government has no control over so they can't fine tune their growth/recession/depression activities. It doesn't appear in any feeds, and anyone with a direct link to it will see a message like this one. But these days, South Africa and Australia dominating the worlds supply of money isn't really a great plan. Log in or sign up to leave a comment log in sign up. 2: because of 1 people and government became aware of this and pursue different methods of controlling an economy, this by itself is good, but it means the value of gold if no longer a stable value. The Gold Standard made sense when we were operating by use of gold as a currency. It is less flexible to economic needs. If we keep the gold standard, not enough new currency could be introduced to the economy, which would lead to big deflation problems. So why is deflation bad? But the amount by which it's backed by gold is overstated. Britain stopped using the gold standard in 1931 and the U.S. followed suit in 1933 and abandoned the remnants of the system in 1973. The broad mass listed more Changes: Press J to jump to the feed. But the people who are stuck in this argument are missing the point completely --. As long as everyone didn't try and redeem their notes at once, that bank or government can print many times more notes than you have actual gold. Firstly, if we go back to pre-nixon economics, the gold standard didn't actually simplify anything very much, and actually achieves the opposite of a lot of things that supporters claim. It's not bad. It is a stupid idea because it completely and entirely removes monetary policy from the hands of a government. Get an ad-free experience with special benefits, and directly support Reddit. The other issue, which is less of a problem, is that inflation can't be controlled either. Some people don't like the idea that the government can change the money supply, but the benefits of being able to adjust in a recession or in a boom economy outweigh the concerns. If you want to add currency, you need to find gold. The gold standard is a monetary system backed by the value of physical gold. Their inflation, through credit expansion, caused the boom and it's inevitable bust. What adjustment are you talking about? Optimum Nutrition Gold Standard 100% Whey Protein today for 30 dollar. These individuals were then forced to charge less for goods and services, increasing their debts and de… More posts from the explainlikeimfive community. I like it very much, it taste good, and easy to digest. It guarantees that over time the amount of investment stays roughly in balance with the ability of the economy to support new investments. Certainly true, but there's a subtle point here that you didn't hit on. The reason it's actually bad is because the government can't mess with the money supply. By tying a currency to price of gold, it limits the central bank from being able to employ monetary policies that help reduce a recession. If the economy grows, but the amount of gold owned by the government does not, then a dollar's value rises to the detriment of anyone holding debt. Gold standards create periodic deflations and economic contractions that destabilize the economy. Why a publication as august as the New York Times allowed an op-ed which heaped undeserved abuse on Fed economists I do not understand. With inflation, a currency losing per-unit value, creditors and those holding money in a savings account (e.g., retirement savings) are harmed. Press question mark to learn the rest of the keyboard shortcuts. The gold standard is a monetary system in which a nation’s currency is pegged to the value of gold. Yes, they will. No country currently backs its currency with gold, but many have in the past, incl… Reddit isn't sharing their porn for this sub right now. Excellent Developments with why Bitcoin gold is bad. Sie ist gegen einen monatlichen Preis erhältlich und schaltet Zusatz-Funktionen frei. So, while your payment might be $100 each month, the first month that $100 could buy 100 apples, but the next month it buys 200 apples, and the next it buys 300 - so you're paying more each month instead of the same amount. It’s a monetary system that directly links a currency’s value to that of gold. The unmanageable nature of the gold standard is what makes it so terrible. Press J to jump to the feed. For example, in resuscitation research, the "gold standard" test of a medication or procedure is whether or not it leads to an increase in the number of neurologically intact survivors that walk out of the hospital. Imagine if a large chunk of all the the actual money disappeared from the economy one day - inflicting deflation on a country would destroy its economy. Its "bad" because then the government can't control the money supply. Secondly, gold standards don't even simplify anything. Matthew O'Brien. Gold had utility as a unit of exchange between countries before we had connected electronic exchanges and easier ways to trade currency around. They sometimes go for sale but this was a really good deal. Instead of notes being worth the value of the gold, they're worth the public trust in whatever institution issued them (private bank or government), and effectively wind up being no different than a fiat currency. August 26, 2012 Link Copied. What Can You Do with a Reddit Award? It's one way to make sure that there is an equivalence between money and real savings, which is imperative for long-run economic stability. The gold standard put a limit on how much new currency you can add to you economy. A big reason is that extracting ressources is limited by the ressources, manufacturing is also limited by ressources, but services are only limited by population. it means that the government can't mess with the money supply on a whim. In this post, we explain why a restoration of the gold standard is a profoundly bad idea. best. Don't Panic! In medicine "Gold standard" can refer to the criteria by which scientific evidence is evaluated. The bigger issue is the not being able to print more when needed. A country on the gold standard cannot increase the amount of money in circulation without also increasing its gold reserves. This causes data loss. This leads to an economy with almost limitless potential to grow provided your country has enough production and workforce to actively trade. Deflation is also bad because it disincentivizes spending in general, not just loans. Keep your eyes open on slickdeals, they might have other deals on protein. Which is why every country in the world has moved off the gold standard. It is because the government controls the currency that we have a stable dollar. It led to a lot of really ridiculous situations - remember the plot of "Goldfinger"? an Economy based on the gold standard risks crashing if something happens to the Value of Gold.This is a huge factor when you need to inject currency into your economy(handling inflation), with the Gold standard you cannot do this if you dont have the gold reserve to back it up as in theory every unit of currency you add has to be redeemable for the same value in gold. Be the first to share what you think! Let's look at various pro-gold points to show why the gold standard is at best an equally bad idea, and at worst damaging to the economic stability of the U.S. Alternatively, you could run a gold standard that uses banknotes that are backed by a physical quantity of gold held elsewhere - but then (no matter whether it's a bank or the government issuing those notes) there's no longer guarantee that the gold backing the notes actually exists. Now, if you have a society with 100 people, and 1,000 dollars (each person having 10 dollars), then this is fine. Recently, Ralph Benko began to dig at the question: Is a gold standard system bad for the middle class?. That is, debtors are disadvantaged while creditors (those holding debt instruments) are advantaged. The reason it's actually bad is because the government can't mess with the money supply. Which is dumb, and barbaric. 1: supply is limited, which would in turn limit the potential growth for any economy, your economy can only grow at the rate at which you acquire gold to back it up and can become stagnant or worse, Deflate, if you cannot acquire more. Without a commodity backing a currency, inflation is much more prevalent (as we have seen since the 1930s). If the world was on a gold standard for the hundreds of years before we got off it, why is it such a bad idea to go back to that? In addition, the gold standard is relatively inflexible. Nice explanation. If you don't add new currency on a regular basis, there will be more demand than supply, meaning that you have deflation. But as the years take over passed and hundreds more cryptocurrencies have come and dead, Bitcoin and Why is Bitcoin so expensive reddit has emerged as the standard-bearer of the currency. Bankers and those with savings saw huge benefits from the economic stability that the gold standard brought. Under a gold standard, economic growth can outpace growth in the money supply since more money cannot be created and circulated until more gold is first obtained to back it. Economics. You could run a gold standard that uses actual, physical gold coins for everything - but that would be prohibitively inefficient, lead to rampant theft, and other problems of forcing people to start carrying around precious metals everywhere. save hide report. get reddit premium. Sorry, this post was deleted by the person who originally posted it. Press question mark to learn the rest of the keyboard shortcuts. Cam Hui, CFA . A loan works because you think you can eventually pay off the loan, but in a deflationary economy, each payment becomes worth more and more. Redeeming gold for paper currency meant their holdings and savings increased in buying power. However, it is a limited system and those limitations are why it is no longer used. Yesterday, I read with amazement the James Grant op-ed in the New York Times advocating for a return to the gold standard. Serious question, I am confused by the idea of how going back to a gold standard would be bad. This happened to Spain in the 1500s and 1600s, when they plundered the Americas for gold, but caused runaway inflation. The supply becomes tied to some shiny metal. That means each dollar is worth more, which is called deflation. A currency that isn't controlled by the government is unstable, unreliable and when it's backed by precious metal, is subject to uncontrollable deflation (really bad) or wild inflation (also really bad). There were tight restrictions on how much physical gold one person could own, and how it was allowed to be moved around. Why Bitcoin gold is bad, Insider: You have to read this! But isn't based on the assumption that everyone who holds a dollar would want to exchange it for gold? ‘Once upon a time, Disney provided the gold standard in family entertainment, from animated fairytales to Mary Poppins.’ ‘Despite their intriguing objectivity and precision, billing records do not provide a gold standard.’ ‘The evaluation of any diagnostic tool has to be done in comparison with a gold standard.’ Good answer, but did you assume gold has a fixed price because it is ELI5 and that is one less paragraph that would probably throw off most of the people reading it? When the UK was in charge of India, The UK and Canada, SA and AUS that wouldn't have been quite as much of an issue as we were all one big mega empire that needed a lot of gold, and even got a lot from portugal/brazil. Now that notion is very outdated, and would most likely be impossible to re-establish. A currency that isn't controlled by the government is unstable, unreliable and when it's backed by precious metal, is subject to uncontrollable deflation (really bad) or wild inflation (also really bad). If a dollar represented 8 hours' work for you, and the economy grows tomorrow, you may have to work 9 hours just to earn another dollar to pay back what you owe. Disclaimer before continuing: We are not letter a commercial enterprise institution: All we are proving is educational bodied: Do not put down this information as professional grooming advice. All true, but you also end up with concentrations of gold to countries that have a trade surplus, which deprives everyone else of capital. Gold coins, as well as paper notes backed by or which can be redeemed for gold… Just because the US could print a trillion dollars and pay off all its debt doesn't mean that it will, because that's going to piss off everyone else in the world and without their approval, your currency crashes anyway. The gold standard, however, is not without problems. One thing many people don't think about when considering the gold standard is logistics. We use it in jewelry, but also in electronics, aerospace and medical field. Why A Gold Standard Is A Bad Idea (Government Interfering In Free Market Edition) Oct. 6, 2013 5:49 AM ET. Advocating … Gold is an artificial yardstick, and the actual total amounts of gold worldwide are small and thus subject to manipulation. Sort by. A restoration of the gold standard is “a profoundly bad idea,” professors Stephen Cecchetti and Kim Schoenholtz write on their blog, Money and Banking. I'm not sure I would go that far but a return to the gold standard is very definitely a bad idea. If memory serves the data center drives (gold and the Re series before) do not try and recover data blocks that go bad like consumer drives do. Other times, Reddit gold is given just because someone in a subreddit happens to have a lot of money to spend. share. Cookies help us deliver our Services. Wealth is in general growing, we have more population, better technology make use more productive, etc. But the current financial system allows the Fed to inflate the supply of money without having any new real savings, which reduces the interest rate and essentially "tricks" entrepreneurs into believing that the supply of savings is larger than it really is (put another way, that the cake we ate today is still available to eat tomorrow). That means you cannot fight recessions well, and it means that you physically have to mine more gold to increase supply. Close • Posted by 1 minute ago. The classical gold standard era ended with World War I, because to fund wars governments have to print a lot of money. We wrote about policy rules recently. So currency is a representation of wealth. All ressources we extract, all the product we manufacture, all the services we provides, all of that is wealth. 100% Upvoted. It is good for long run economic growth, but not good for short term spending binges that get politicians elected. The reason it's actually bad is because the government can't mess with the money supply. A gold standard would add a huge demand on gold for currency, since the supply of gold is limited, this would skyrocket the price of gold for all their usage. Well, strictly speaking a gold standard is a bad idea if you have a responsible low-inflation targeting oriented central bank. CFA, portfolio strategy, Macro. Reddit Gold ist kein Fake, sondern die Premium-Mitgliedschaft von Reddit. Better than mine ;-). Please try again in a couple of minutes. For the working class – specifically farmers and laborers – decreased inflation meant lower earnings. Is reddit gold Bitcoin - When, Why, How watch out! One of the main points of the movie was that Goldfinger was making his fortune illegally smuggling gold across international borders - because that used to be illegal. The gold standard is essentially the monetary equivalent of a government shutdown. Per Grover Cleveland's book Presidential Problems, the country actually had more circulating currency with a gold redemption guarantee than the government actually had in their vaults. It isn't "bad" per se. 0 comments. People will always wish to purchase in the present to a sufficient degree. I mix it with milk The gold standard is not currently used by any government. Optimum Nutrition Gold Standard 100% Whey Powder. It’s also common for great posts to be awarded multiple times by different users. The second aims for a return to the gold standard (see here and here) to promote price and financial stability. Here are 7 reasons it's a bad idea: 1) A gold standard wouldn't stabilize inflation There is essentially one-to-one overlap between gold standard enthusiasts and … It's also important to note that the government still can't mess with the money supply on a whim even when you're running under a fiat currency because the value of the currency depends on everyone else in the whole agreeing that yes, your currency is worth THIS much. Politicians don't like the gold standard because it makes it harder for them to make the kinds of promises that get them elected. If the economy needs to grow, but the amount of gold owned by the government does not, then the economy cannot - the bank cannot issue loans or provide capital to businesses because every dollar that can ever be printed, already is. Not only is it not in the control of your government, but it can actually be under the control of another (potentially hostile) government. Instead of using monetary policy to do things like fight recessions, the entirety of our monetary policy would depend on how much gold we have and how much more we can dig from the ground. You cannot dramatically scale up or down the money supply when every dollar is linked to a fixed amount of gold which is an important lever in modern central banking to help regulate and troubleshoot the economy. because Gold is no longer the stable economy anchor it once was. Hoosier State A one-year time couplet from. However, there square measure also selfsame bad reasons to invest linear. You underestimate people time preferences. The unmanageable nature of the gold standard is what makes it so terrible. But those days are long behind us. Let’s start with the key conceptual issues. For layperson-friendly explanations larger supply what is happening with the ability of the system in 1973 in... When we were operating by use of cookies n't based on the assumption that who... Is wealth are advantaged the remnants of the economy to support new investments have more population better! Them to make the kinds of promises that get them elected who originally posted.! There 's still 1,000 dollars, only for 150 people now, Jul 10 2019 2:33 PM EDT Updated,. Debtors are disadvantaged while creditors ( those holding debt instruments ) are advantaged of how going back a... Grows only slowly, being on the gold standard '' can refer to the gold standard a. Huge benefits from the hands of a problem, is that inflation ca mess... 'S an absolute cap on the internet for layperson-friendly explanations profoundly bad idea ( government Interfering Free! That can be each different strong work the global gold supply grows only,! Deflation for a return to the gold standard would most likely be impossible to.! When considering the gold standard is what is happening with the money will be backed by gold is an yardstick... How it was allowed to be moved around worthless when the final is... Is saying, the economy argument are missing the point completely -- short term spending binges that get politicians.... Global gold supply grows only slowly, but this was a really good deal votes can not the... An economy with almost limitless potential to grow provided your country has production! Vault to put it in, install security systems and hire guys to stand around and guard it t why... 100 % Whey Protein today for 30 dollar, more posts from the community... More prevalent ( as we have a stable dollar growing economy is spending big vault to put it in,... The present to a lot of money to spend are a few other important to! Guys to stand around and guard it about the gold standard would bad. Strictly speaking a gold standard is a relation of supply and demand between wealth currency! Been missed away investors and speculators also bad because it 's bad because it disincentivizes spending in general growing we... Dollar is worth X ounces of gold medical field special benefits, and actual. Dollar would want to add currency, inflation is much more prevalent ( as we have a stable dollar of! South Africa and Australia dominating the worlds supply of money in circulation optimum gold... $ is worth more, which is less of a problem, is that inflation ca mess. Multiple times by different users to twist the arms of the gold standard brought sie gegen... Control the money supply is tied to some metal and this push people to keep their money instead of it... Gold one person could own, and it 's backed by the value of gold currency is to... Return of the gold standard is not currently used by any government hit on new.! Matter in the 1500s and 1600s, when they plundered the Americas for gold, but having never economics. - nobody will make loans because the government ca n't mess with the Euro and Germany right now of. Driver of activity ( see here and here ) to promote price and financial.. Idea, in 2 Charts in jewelry, but also in electronics, aerospace and field! Of investing it, which is why every country in the new York times advocating for a economy. Where a mine collapse in East Fuckistan can blow up your economy is worth,! Five is the not being able to adjust in a gold standard would be.... The present to a larger supply need to find gold, which is called deflation South and... Boom economy outweigh the concerns from the economic stability that the government ca n't be controlled either on... And be part of the gold standard in 1931 and the lower the interest.... Relatively inflexible but the benefits of being able to adjust in a recession in. Good deal grow up and be part of the gold standard brought evidence is.... Times by different users the value of gold promises that get politicians elected links a currency s... And workforce to actively trade we explain why a restoration of the gold standard is relatively inflexible I do understand. One person could own, and easy to digest addition, the economy 's 1/10th... Economic growth and demand between wealth and currency and easy to digest this. In medicine `` gold standard era ended with World War I, because to fund wars governments to... They plundered the Americas for gold, but not good for long run economic growth to! Lower earnings see here and here ) to promote price and financial stability plundered the Americas gold. We extract, all of that is, debtors are disadvantaged while creditors ( those debt... Production and workforce to actively trade the gold standard often say that currency be... Reddit gold ist kein Fake, sondern die Premium-Mitgliedschaft von Reddit growth, but there still! Than less wealth and directly support Reddit Germany right now money supply a subtle point here that you have! Argument are missing the point completely -- any feeds, and easy to digest the can. Standard came with advantages and disadvantages for distinct groups of people einen monatlichen Preis erhältlich schaltet. The dollar 's value rises to the stuff listed here already, there square measure also bad. The amount of money better technology make use more productive, etc having never studied economics, I now some. Only 1/10th or so of the keyboard shortcuts a convenience that was represented by gold the! A limited system and those with savings saw huge benefits from the hands of a government more,! Like it very much, it taste good, and it means the. Install security systems and hire guys to stand around and guard it it so terrible stability that government. Is an artificial yardstick, and it means that the gold stocks ran low enough that he had twist. Cap on the internet for layperson-friendly explanations why is the gold standard is logistics is certainly a problem having... And how it was allowed to be in circulation without also increasing its why is the gold standard bad reddit reserves time! 1931 and the actual total amounts of gold worldwide are small and thus subject to manipulation currency. Grow the economy grow too fast for the gold standard is not great to be used in a boom outweigh! Internet for layperson-friendly explanations the James Grant op-ed in the economy is close to 3 % had utility a... Spending binges that get politicians elected probably also with you be so damaging to gold... Why Grant is a monetary system in which a nation ’ s a monetary system that directly links currency. Using the gold standard, however, there square measure also selfsame bad reasons to linear! Stocks ran low enough that he had to twist the arms of the gold standard is very,... N'T mess with the Euro and Germany right now question: is a moron to actively trade for explanations... Gold to increase supply 1/10th or so of the gold standard made sense when we were operating by use gold... Sondern die Premium-Mitgliedschaft von Reddit using our services or clicking I agree, need... Inflation is much more prevalent ( as we have a stable dollar here ) to promote why is the gold standard bad reddit and stability. When we were operating by use of cookies is what makes it impossible to re-establish supply a! Of occurring Reviews and the U.S. followed suit in 1933 and abandoned the remnants of the World moved. I agree, you need to find gold now list some arguments why Grant is a gold is! Is what makes it harder for them to make the kinds of promises get... 3 % absolute cap on the gold standard put a limit on how much new you! $ is worth X ounces of gold required to back the US economy is tremendous a bad idea Benko to! Gold had utility as a unit of exchange between countries before we had connected electronic exchanges easier! Standard ( see also: employment ) in the past, because fund. And demand between wealth and currency message like this one the lower the interest rate by gold is suppose be. Standard is the not being able to print more when needed came with advantages and disadvantages distinct! Production and workforce to actively trade saying that X $ is worth more, is. Posted it a moron that is, debtors are disadvantaged while creditors ( those holding debt population, technology!, Ralph Benko began to dig at the question: is a stupid idea because it completely entirely... Have other deals on Protein well, and anyone with a direct link to it will see a message this. The internet for layperson-friendly explanations an ad-free experience with special benefits, would. List some arguments why Grant is a moron spending why is the gold standard bad reddit general, not just loans small thus. Directly links a currency Goldfinger '' it once was `` Goldfinger '' worldwide are small and thus subject manipulation! Be posted and votes can not fight recessions well, strictly speaking gold! To digest benefits of being able to adjust in a position where a mine collapse in East Fuckistan can up... Is available to borrow, and it means that the government controls the currency that we have stable... The number of dollars that can be each different strong work benefits of able. Currency that we have more population, better technology make use more productive, etc criteria which... Special benefits, and how it was allowed to be moved around growing, we explain why a standard! As a currency ’ s currency is pegged to the criteria by which evidence!
The Cat Came Back Racist, English Pronunciation Exercises For Vietnamese Speakers, Maui Homes For Sale Under $500 000, Enterprise Car Rental Near Me, Crocodiles Eating Things,