Comment by quickthrowman
2 months ago
There is a fixed supply of gold that does not correlate with economic output. It makes zero sense to tie the value of paper money to gold.
2 months ago
There is a fixed supply of gold that does not correlate with economic output. It makes zero sense to tie the value of paper money to gold.
That argument comes from an ancient list of arguments against gold. But nobody seems to be able to explain why that would matter at all. There doesn't need to be any correlation with the amount of currency and the economic output. And there has never been any such correlation, including right now with the dollar or any other currency.
If you want an economy to prosper the currency value has to remain stable. That means it has to scale with economic output. You can, of course, not do that, if you want to kneecap yourself.
Both the dollar and the euro have lost 70% of their value in the last 20 years. Most other currencies more than that.
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