I came across an interesting article. I would like to briefly deconstruct and attack the arguments made.
Myth: The gold standard is a better monetary system.
Fact: The gold standard causes deflation and depressions.
The far right advocates the gold standard because it gets government out of the business of controlling the money supply. They fear that printing money creates inflation, and retracting money causes recessions. But the opposite is also true: printing money cures recessions, and retracting it cures inflation.
Governments in the last 60 years have used these policies with tremendous success. There has not been a single depression or bank panic in any nation anywhere in the world using Keynesian monetary policies. But during the Gilded Age of the late 19th and early 20th centuries, depressions and bank panics were common. The historical record is so strong that mainstream economists reject the gold standard almost universally.
economic law must be asserted sometime.
Just like a ball thrown into the air reaches a zenith so likewise during a credit expansion the inflation and debt appetite increases. However, eventually a zenith is reached and then like gravity a credit contraction and deflation happens.
Central economic planning backed by the barrel of a gun will always lead to less efficient allocations of resources than a free market. If it could ever result in more efficient allocations then the gun would be unnecessary. For example, if there was a Central Egg Commission that controlled the supply and price of eggs throughout the entire United States how efficient do you think the egg market would function?
So likewise the Federal Reserve System centrally controls the supply and price of currency with the aid of unconstitutional and immoral Legal Tender Laws. How efficient do you think the currency market is? The United States Constitution intended the currency market to be a free market using voluntary transactions not a violently forced centrally planned market.
hundreds of millions individuals have been killed by their governments. The Time Men of the Year Stalin (1942), Rooselvelt (1933) and Hitler (1938) along with many others used confiscation through inflation to abuse currency and fund their wars. Only through abuse of currency were they allowed to engage in genocide on a worldwide scale.
'tremendous success' doing what they do best; lying, robbing and murdering. </div>
Mises wrote, "It is impossible to grasp the meaning of the idea of sound money if one does not realize that it was devised as an instrument for the protection of civil liberties against despotic inroads on the part of governments. Ideologically it belongs in the same class with political constitutions and bills of rights." </div>
voluntary transactions. Fiat currency is the advocate of coercion and force through the instrumentality of government. Most 'mainstream economists' are professors at universities that receive funding from governments. </div>
Governments have so abused the currency that now the political machinations are ruining the stability of nations.