Ep. 529 Leftist Site Attacks Gold Standard; Here’s Our Smackdown
9th November 2015
*** begin quote ***
ThinkProgress, the heresy-hunting thought-control site, lashed out at Ted Cruz last week for advocating some kind of tie between the dollar and gold. Cruz himself is not the issue; the issue is how terrible their article was. Their article is the bologna; the Tom Woods Show is the slicer.
About the Guests
Joseph T. Salerno is academic vice president of the Mises Institute, a professor of economics at Pace University, and the John V. Denson II Professor of Economics at Auburn University.
Jeffrey M. Herbener is chairman of the department of economics at Grove City College and associate editor of the Quarterly Journal of Austrian Economics.
*** and ***
SALERNO: Yeah, that’s true, absolutely. In the 19th century, prices from 1800 or so toabout 1896 fell by about 20%. In other words, $1 bought roughly 20% more in 1896 than it did in 1800, whereas if you compare the timespan that the Fed was in existence from 1914 until today, our dollar’s worth about 4 cents. So in other words, the value of the dollar has declined by over 95%, and it has nothing to do with — that is, the 19th century performance — had nothing to do with the fact that the dollar was tied to a”shiny metal” and that the value was real; it’s simply that the gold standard restrained the number of dollars that politicians could print.
*** end quote ***
I think the essential point, of a “gold standard” or any “sound money”, is the restraint it put on the banksters to dilute the value of money. At least the Kings and Princes of old had to “clip” the gold and silver out of the coins.
I came to this epiphany when I saw a Smithsonian exhibit of the French franc over time. IT started as a “hockey puck” of gold and wound up as a “very very thin shirt button” of gold. Argh! That’s when the light bulb went off. All I could think at the time was William Jennings Bryan saying “I will not help to crucify mankind upon a cross of gold.” We should have stuck with gold!
I can’t imagine what America would be like if we didn’t have the FED (The Federal Reserve Bank is a misnomer. IT ain’t “federal”. It reserves nothing. And, it ain’t a “bank”. It is a private cartel of the elite banks run for their benefit and that of the entrenched politicians.) which allowed the welfare / warfare state to silently rob the people of their wealth. Argh!
Now try to lock the proverbial barn door.
The FED’s “zero interest rate” policy for the last eight years (?) is a double disaster — (1) without interest rates to filter “bad” capital projects, all sorts of mistakes are being made; AND (2) the poor old senior citizen on a fixed income have had their wealth destroyed.
Hope there is a special circle of Hell for these people.
Good job by Woods, Salerno, and Herbener to knock this out of the “park”.
# – # – # – # – #