[PLOlover]

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but my point is you are saying gold standard the money would undergo deflation (same money supply, increasing economy), I'm just saying that gold mining would be an inflationary effect, and the greater the amount of intrinsic deflation, the more profit there would be in gold mining(inflation.).

so it seems to me the free market would find the balance there.



You're dealing with a gigantic economy which operates on a scale that would have been unimaginable as recently as a century ago, which directly impacts 300 million people and currently has an M0 of 700 billion/M2 of 7 trillion. When proposing to switch it to a metal the total sum of whose mined deposits on the planet - not just in the US, mind you - total $2.5 trillion or so, you're going to have to do way better than "well, the free market will come up with more gold mines".

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b) in your scenario gold would have to be increased in value, not decreased in value.



The only way to physically do what you're proposing is to decrease the value of gold, period.

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a) i'm saying increase gold production would produce inflationary effect *once a stable gold standard was already in place*.

b) as for switching, look at what you're saying. you're saying worldwide gold supply is only "worth" X amount, and it needs to be work X*Y amount for it to work as a replacement. So I'm saying if you wante to switch from fiat to unimetallic monetary standard, gold would have to go from a "worth" of X to a "worth" of X*Y. I'm simply stating X*Y is greater than X, that is gold would be "worth" more if it were the sole worldwide currency.

c) also central banks having gold begs the question of why they have gold in the first place.