http://www.econtalk.org/archives/2008/06/gene_epstein_on.html

Gene Epstein on Gold, the Fed, and Money
June 02, 2008, Featuring Gene Epstein

Gene Epstein, Barron’s economics editor, talks to EconTalk host Russ Roberts about the virtues of the gold standard relative to fiat money. Epstein argues that privately issued money, backed by gold, would lead to an economy with much greater price stability and fewer and milder recessions.

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Casualties under a gold standard:

* Federal Spending (“Teenager model”)

* Spending upon dubious things

* “Deficits don’t matter” “Guns and Butter both”

* Monetize the debt; index to inflation

* Unfunded liabilities

* Gooferment can fight wars

* Gooferment can make promises

* Foreign entities buy Federal debt giving them a lever politically

* Banks protected by Gooferment; a cartel

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