Ron Paul's Farewell Speech to Congress: The End of a Cult Figure

**rvg** · 11-15-2012, 19:54

Originally Posted by gaelic cowboy

it's a fact that rigidly sticking to a universal standard at a time of economic weakness lengthened the recession.

A fact? Highly debatable at best.

but that's the point you couldn't devalue it as it would be worth X gold, instead you would have to stop money creation through high interest rates and you would need to deflate the economy instead.

Something's gotta give. If the currency is to be static, the printing presses must be stopped.

**gaelic cowboy** · 11-15-2012, 20:00

Originally Posted by rvg

Something's gotta give. If the currency is to be static, the printing presses must be stopped.

the last thing you want is a static currency but anyone who invested in gold or is already very wealthy would love it.

**rvg** · 11-15-2012, 20:06

Originally Posted by gaelic cowboy

the last thing you want is a static currency but anyone who invested in gold or is already very wealthy would love it.

I disagree. Those who invested in gold have nothing to fear from inflation.

**gaelic cowboy** · 11-15-2012, 20:17

Originally Posted by rvg

I disagree. Those who invested in gold have nothing to fear from inflation.

You can only realise the value of your holdings when you sell them, but then your subject to inflation again.

**rvg** · 11-15-2012, 20:24

Originally Posted by gaelic cowboy

You can only realise the value of your holdings when you sell them, but then your subject to inflation again.

Why would they need to sell their gold? That's like selling Apple shares == dumb idea. And I don't need to sell my gold to know that it's appreciating in value.

**gaelic cowboy** · 11-15-2012, 20:27

Originally Posted by rvg

Why would they need to sell their gold? That's like selling Apple shares == dumb idea. And I don't need to sell my gold to know that it's appreciating in value.

you cant go into the local supermarket and buy a loaf of bread for a gold share you would need to sell some of it eventually.

**rvg** · 11-15-2012, 20:30

Originally Posted by gaelic cowboy

you cant go into the local supermarket and buy a loaf of bread for a gold share you would need to sell some of it eventually.

Some of it, sure. Only as much as you need to spend though. There's absolutely no reason to sell more than that. And whatever you immediately sell for spending purposes is not affected by inflation unless you're talking about hyperinflation, in which case it's actually better to barter rather than use currency at all.