Greenspan says we need a goldstandard.

[Orlando Salazar]

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As long as the agency that creates the fiat currency has unlimited taxing power, the fiat $ = value of the nations wealth = value of its resources = gold+.

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This makes zero sense.

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Try again. U didn't know what the GE multiplier was.

[Borodog]

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Things not said in this interview: "We need a gold standard."

Things said in this interview:
Interviewer: "Why do we need the Fed?"
AG: "With fiat money, you need a mechanism like a gold standard, a currency board, or some other mechanism to constrain the gov't's ability to print money."

"I think we did well with the international gold standard around the turn of the century."

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Picky picky picky!

[Borodog]

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As long as the agency that creates the fiat currency has unlimited taxing power, the fiat $ = value of the nations wealth = value of its resources = gold+.

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This makes zero sense.

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Try again. U didn't know what the GE multiplier was.

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lol

[Bedreviter]

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"I think we did well with the international gold standard around the turn of the century."

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But can the US reinstate the gold standard when other countries are not using it? How would that affect trade, economic growth, money supply and the value of the gold backed dollar compared to other currencies with varying value?

[Borodog]

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"I think we did well with the international gold standard around the turn of the century."

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But can the US reinstate the gold standard when other countries are not using it? How would that affect trade, economic growth, money supply and the value of the gold backed dollar compared to other currencies with varying value?

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It would be no different than it is now is one way, if we switched and they didn't. Countries already have different currencies.

Not that there wouldn't be effects, but it's not like we are constrained to have paper money because everyone else does too.

In fact, if we had gold backed non-inflated dollars, world prices would continue climb in the inflationary fiat currencies like the Euro and Yuan, but fall in dollars, i.e. the other currencies would be obviously being devalued against the gold dollar. I think if 1/4 of the world's economy remonetized gold, the rest would follow in short order.

[AlexM]

Greenspan should have plugged Ron Paul.

[pvn]

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As long as the agency that creates the fiat currency has unlimited taxing power, the fiat $ = value of the nations wealth = value of its resources = gold+.

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purple monkey dishwasher?

[shawny boy]

So if the US adopted the Gold Standard how would we cope with the currency shortages brought about by the natural growth in GDP? Isn't it generally accepted that moderate inflation is much preferable to the deflationary effects of a fixed money supply?

[lehighguy]

Paul Volckner 2008

[honest1]

You may be correct, he always seemed very nervous during the time that Bill Clinton was in office.