hackwrench:"the gold standard was generally a bad idea, keeping gold from other purposes."
I think you meant to say that the gold standard was generally a good idea, keeping politicians from manipulating the value of money. Other than that, thanks for the link.
Um...money's value became inflated and deflated because it was a VALUE. Manipulate it freely and "value" is exactly the thing that it loses. This bubble economy is headed for a big wet splash.
And no, I wouldn't advocate a return to the gold standard - that was pretty stupid too. The truth is that economic systems broaden, it becomes very difficult to find one standard of valuation that makes any sense. The whole idea of currency was never meant to equate X loaves of bread with Y space shuttles. It's absurd.
Sometimes it needs to lose value. And I'm not talking about manipulating it free of other concerns, I'm talking about manipulating it in response to demand on money.
Necessary gold standard link (Score:1)
By the way, the gold standard was generally a bad idea, keeping gold from other purposes.
Re:Necessary gold standard link (Score:2, Informative)
I think you meant to say that the gold standard was generally a good idea, keeping politicians from manipulating the value of money. Other than that, thanks for the link.
Except for one thing... (Score:1)
Re:Except for one thing... (Score:0)
And no, I wouldn't advocate a return to the gold standard - that was pretty stupid too. The truth is that economic systems broaden, it becomes very difficult to find one standard of valuation that makes any sense. The whole idea of currency was never meant to equate X loaves of bread with Y space shuttles. It's absurd.
That's the point... (Score:1)