In video form:
The author does make some rather outlandish claims – World War One is probably the one war in human history which no human action could stop. And it would have been fought just as bitterly and as long even if everyone had to use gold for all transactions. But the basic thrust is true – fiat money allows irresponsibility. And both in government and private transactions. You don’t fret about fake money which will lose its value…so you are easily swayed to spend it on all manner of stupid things. Things of real value, on the other hand, tend to be carefully husbanded.
But we can’t go back to gold! So goes the consensus. But I wonder why anyone believes this – if anyone can come up with a good reason, I’m all ears. But for me, it is a very simple operation.
You pick a date and say on that date all US currency will be revalued at a 100-1 ratio: for each 100 fiat dollars, you now have 1 gold dollar. This is done universally: you’re $20 an hour wage now becomes 20 cents an hour. Your $200,000 house now becomes a $2,000 house, and so on. The $1,600 ounce of gold now becomes $16. Hey, presto, we can make a $20 gold piece, again. You know, like we used to.
Gold for the higher denominations ($20 and up), silver and copper for the lower ($10 on down, with real copper used for pennies; though we’d probably have to start minting half-pennies, too). Paper currency could still be issued, but it would be chained like iron to the amount of gold and silver in the treasury. The nature of finance dictates you can issue more paper currency than there is gold and silver, but you can’t go too far…if you do, the value of the paper currency becomes worthless as people hoard their gold currency and start using the paper for other purposes. There can still be chicanery, but not on such a grand scale that 98% of the people’s money is stolen.
Gold and silver are decreed as the currency of mankind – fiat money is the currency of con artists. A free people cannot long endure money men using fake money to steal the wealth of a nation. We must know that when we labor and earn a dollar that the dollar will remain constant in value…even if we just stick it in a coffee can for 50 years. For nearly 200 years America grew and thrived under gold currency – for 40 years we have weakened and shriveled under fiat currency. Time to change – and as we are genuinely conservative, our best bet is to change back to where we were, rather than trying to “conserve” the fiat currency of liberalism.
HAT TIP: Mish’s