The Gold Problem
By Ludwig von Mises
Posted on 8/10/2007
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Why have a monetary system based on gold? Because, as conditions are today and for the time that can be foreseen today, the gold standard alone makes the determination of money’s purchasing power independent of the ambitions and machinations of governments, of dictators, of political parties, and of pressure groups. The gold standard alone is what the nineteenth-century freedom-loving leaders (who championed representative government, civil liberties, and prosperity for all) called “sound money.”
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Big gooferment thrives on the inflation tax for a number of reasons. Probably the biggest easiest one is that they don’t have to go on the record and vote to raise taxes. With inflation, they just spend and print. The Fed is thrown into the mix to placate the bankers who understand the scam and could lead the intellectual debate against it. Linking money to some thing, anything, limits the gooferment’s ability to inflate the money supply. It doesn’t even have gold. Anything that prevents the printing press to create counterfeits. Gold has withstood the test of time.
The redeemabliity of a paper note into gold limits the number of notes that can be printed. Hence no inflation and stable prices.
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