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polexi
01-29-2008, 12:46 AM
"Ron Paul wants to put us back on the gold standard because he wants to take money away from the federal government. Most economists agree that this would be, in fact, a bad thing. Can you explain to me how they are wrong?"

I'm not sure how to answer this question a user brought up on a discussion board, and it would be nice to know what to say if someone brings it up in the future.

Any input would be great!:D

FSP-Rebel
01-29-2008, 12:50 AM
RP wants to legalize the competition of currencies which would help phase out Fed notes. My guess as to the only reason why 'economists' might not like the G standard revolves around the potential fact that dwindling our monetary system to the above standard would cause a mass deflationary period. At least that's how I currently understand it. I definitely open for criticism though

ctb619
01-29-2008, 12:51 AM
When did Ron Paul advocate a strict gold standard? It was my understanding that he simply wanted to legalize competing currencies.

luvthedoc08
01-29-2008, 12:54 AM
When did Ron Paul advocate a strict gold standard? It was my understanding that he simply wanted to legalize competing currencies.

exactly

zakkubin
01-29-2008, 12:54 AM
Yep he only would allow it as a competing currency.

Yom
01-29-2008, 01:26 AM
Yup. And it wouldn't really be gold being circulated since that's inefficient. Rather, he would allow people to buy gold (and silver) bonds (which are backed by gold and can be cashed/traded in for gold) and allow them to circulate (if people want, no imposition), instead of just Federal Reserve Notes (dollars).