Savings and The Gold Standard

[constituent]

On a gold standard, how large of a problem do you think would be created-in time-through wealth consolidation and individual savings?

is the savings issue only really that big of a deal when gov't need to fund wars or is there historical precendent where in times of peace, savings have caused problems in the money supply leading to economic stagnation?


is this why ron paul offers his solution of legalizing competition in currency?

what do you think this type of system would look like? he hasn't really elaborated on this.

would it be a system where one could say, oh... i have 200 tons of steel and 100,000 gallons of fuel and i'll print up certificates entitling individuals to a certain share of the steel or fuel on demand?

and who would regulate this sort of system to ensure that entities do actually have their certificates backed up w/ real goods?

[fsk]

Under a pure gold standard, interest payments are a disincentive to gold hoarding. If the person receiving the loan is trustworthy, then it's better to lend out your gold instead of hoarding it.

Without government, a gold standard works fine.

Anyone can issue gold-debt backed by any goods or services they have.

In a free market, someone who commits fraud would probably not be able to issue debt anymore. They would only be able to buy with cash. They would be unable to borrow to finance their business. The free market does a fine job punishing fraud, when government doesn't protect the people who break their promises.

[TheEvilDetector]

Debate between Ron Paul and a FED governor on the GOLD standard.

Extremely Informative (held in 1983).

http://video.google.com/videoplay?docid=-2354618193217305530

[constituent]

thanks detector