Re: Explain to an idiot the benefits of going back to the Gold standar
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in inflation, the money is becoming worth less, in deflation, the money is becoming worth more. (in reality I don't think this would occur as mining gold would free market be more appealing and thus keep the balance).
O rly?
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One of the main disadvantages of the gold standard is that it artificially inflates the value of gold. The total amount of gold that has ever been mined is estimated at ~125,000 tonnes.[1] At the current gold price of around USD $640 per Troy ounce, or around $20,000 per kilogram, the value of this entire planetary stock would be USD $2.5 trillion, which is less than the value of currency circulating.
It's gonna take a whole lot of extra gold mining to get there from here.
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you could just as easily say that fiat money depresses the price of gold. but anyway, to talk about switching from a fiat to a commodity backed money is a different scenario than being on a precious metal money standard and what will happen to the money over time.
gee I hope I don't get insulted again, but let's agree that inflation results in money worth less in the future, and deflation results in money being worth more in the future. agree or no?
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