Comment Re: You think Greeks want MORE electronic money? (Score 2) 359
Eh. Don't oversell the old gold standard. For starters, a gold standard was typically a steady and persistent malaise of deflation, as economic output increased more steadily than the money supply.
Yeah, anyone advocating returning to the gold standard needs to read some economic history to really see what things were like when we were on the gold standard. 1800-1933 saw 33 recessions/depressions - every 4 years on average - with declines in business activity or GDP of 10%, 20%, and even 30% common.
Since going off the gold standard, we've had 13 recessions in 82 years, or every 6.3 years on average. And aside from the recessions following the Great Depression and WWII, none of them has seen GDP shrink by more than 5%.
Zero inflation/deflation in a currency happens when the amount of currency floating around exactly matches economic productivity. With a fiat currency, a legit government tries its best to expand the money supply to maintain that balance. With a gold standard, whether you get inflation or deflation depends entirely on the ratio of economic productivity to how much new gold is mined. And don't even get me started on how disastrous it is to set a finite limit on the amount of currency you can mine, like Bitcoin does.
Being on the gold standard doesn't mean you have solid monetary policy based on a physical good. It means your "policy" is effectively determined by how much gold people are finding and mining at any given time - its based on luck and good/bad fortune. Yes it prevents abuse by the government printing too much currency. But it avoids that potential abuse by completely removing the economy's rudder, leaving you adrift and completely at the mercy of how lucky gold miners are that year.
The true fundamental currency is productivity. Whether you use dollars, euros, gold, or bitcoin, avoiding inflation/deflation means increasing the supply of physical/virtual currency to exactly match increases in productivity.