What Bernanke gets wrong about the gold standard

(Last Updated On: April 4, 2012)

What Bernanke gets wrong about the gold standard


Keynesians loathe gold. They loathe it because it ties their hands. They want to be Masters of the Universe. The universe however has other plans as it has shown time after time after time. Ever notice that the econometricians…


Let us quote you, ” The only way you can force interest rates down is with a flexible currency, which is money created out of nothing. The trick here is not hard to figure out. ”
So, you are now disagreeing with yourself. Read some more with an open mind.

Fixed currency with a growing world population means no cash for increased production. On top of that new and innovative productions adds greater economic need for currency.

Your position is untenable. Enjoy numismatics for art. That is a fine business. Enjoy the dollars created in the money multiplier, your living depends on that.


It is fine for you to start a conversation where you will be biased; however, you probably should mention that in your original post. The number of books that you read is not important. What is important is the variety of books that you read. If you simply continue to read books that only back up your pre-determined view, then your opinion is going to be overly biased and you will likely, continually, fall victim to the confirmation bias. The books I mentioned were not meant for any other reason than to simply provide a list of books, on the subject at hand, that includes a wide variety of opinions. Lasty I would love for you to detail which part of my analysis you find pedantic (but omit the infantile commentary if you do decide to reply).


Have a look at Systeme Débrouillard which is banking without any regulation in economy practised through out the world outside the reserve system by criminal enterprise and is variously assumed another half again as large as the entire central reserve and investment banking system combined as we can measure reasonably accurately and factually discuss.

One small remote mansion recently raided in Mexico had 22 billion in bills acquired, all without taxation, stuffed in various ways through the house no bullion but gold was fetish decoration of many guns in their arsenal. These are deadly practical people. They know the use for gold is decoration.

Framers constitutional debates understood the argument from liberalities and individualism locked up for a millenium and released by the Renaissance and Reformation through Locke to Adam Smith’s first predicate in “Moral Sentiments” through his later “Wealth” was empathy for social good that ethics requires. In his lengthy 500 page “Moral” argument is the core of the “Invisible Hand” famed and misunderstood by most.

Seeking mutual good is at the core of negotiating transactions including credit ethically sought and ethically provided in sympathy, virtue and prudence extended in mutual respect and tolerance. That is Adam Smith’s perspective (and while not essential in a criminal, as he relates) he believes it is most highly desired such virtues be sought as that alone sustains a moral conservative society. His arguments proceeded from both
humanist and theological streams. Excess and greed are not virtuous or good but ultimately oppressive. Philosophically said also Karl Popper and politically his friend Hayek.

The framers sought education as a free man’s right because without reasoned debate we are left with the depredations of a bellicose shout-down by adolescents. Nothing reasonable just or useful gets done by shout-downs. As a species depending on economic society for our very dinner we succeed by collaborating conscientiously as a group to get our mastodon.

Your disdain should be for the policy the Treasury invoked and we continue to pay for.


Money is the medium of exchange that gets us past bartering. The logic behind gold is the idea that it’s value cannot be compromised? I think the political types are more clever than that assumption would imply.


Isn’t the financial system more about liquidity than anything else hence the printing press option for central banks???


While I respect everyone’s decision here, does everyone know that the gold standard was replaced by oil “standard”? Second, a gold standard would increase the value of the dollar by limiting supply and subsequently any comparative advantages we have in trade would disappear and net exports would decrease drastically. Third, the US would sell more sovereign debt to fund that trade deficit. (US debt is bought in dollars so decrease in supply of dollars would exacerbate the trade deficit). Rinse and repeat.

A gold standard works when other economic powers are on board. Mercantilism did not work for a reason…


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