[quote=markmax33][quote=swave]It is great that Ron Paul is willing to tell us the truth. None of the other candidates are willing to do that. Unfortunately, he does not have the solution. If we go to a gold standard, the supply of money will be fixed. If the supply of money is fixed, the economy cannot expand. If the economy cannot expand, the unemployment rate will go up.
On the other hand, the economy cannot expand exponentially forever anyway. At some point, we will run out of resources.
This is incorrect. You can fix the money supply and some prices will drop, others will rise, but ironically the money supply wouldn’t be fixed. Gold is always being mined and the money supply will always be expanding on that standard. The point of the gold standard is the FIXED SUPPLY increase, not a fixed supply. Without that any currency gets out of control.[/quote]
Yes, 708 tons of gold were mined in the second quarter of this year, but 919 tons of gold were used in jewelry and electronics. The total amount of gold that has been mined is 165,000 tons. The amount available to back a currency is decreasing. A better commodity to use to back a currency is the environment. Clean water, clean air and undeveloped land.
I spend a lot of time swimming and surfing in the ocean. Ron Paul’s views do not encourage the maintenance of a clean ocean. I cannot afford to hire a lawyer to sue a company that has polluted the ocean.
