MONEY: THE gold standard; the only standard

http://dumpdc.wordpress.com/2011/06/14/what-the-gold-standard-is/

What the Gold Standard Is
courtesy The Lehrman Institute

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The classical gold standard is simple and it works.

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The classical gold standard does not mean that we will be carting around gold pieces in a purse like the nobles of Merrie Old England. We will still carry around currency, use bank accounts, checks, and credit cards. The classical gold standard simply means that you can, for any reason or no reason at all, cause your paper dollars and bank deposits to be exchanged for an equal value of gold dollars. That legal option keeps the currency honest, and valuable, causing no long term inflation or deflation, not least because the government is bound by the same law of convertability.

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The classical gold standard works.

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I don’t know might be kinda have gold coins like our great grandparents used.

The key thing that the “gold standard” IS is a restraint on the number of “dollars”, francs, yen, or rubles that the Gooferments can print.

Then, every piece of paper has value. Not as intrinsic as a gold coin, but by what it can be exchanged for.

Simple!

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