Should we have a hard dollar, backed by gold?

Summary: We'll hear much from Republicans during Campaign 2016 about the glories of a gold-backed currency. Today's post debunks that with history from 19th Century Britain, when both men and money were hard.   {1st of 2 posts today} "Accursed thirst for gold! what dost thou not compel mortals to do?" --- Virgil's Æneid (29-19 BC). … Continue reading Should we have a hard dollar, backed by gold?

Are conservatives right about the Fed? Is it a malign force in America?

Summary: Central banks have never been more powerful, more significant to the economy, more controversial (although they've often been unpopular), or more misunderstood. Today we debunk two of the myths about their evil they do; at the end are links to posts about their limitations. . Contents About conservatives' faux history and economics About investment … Continue reading Are conservatives right about the Fed? Is it a malign force in America?

The lost history of money, an antidote to the myths

Summary:  With monetary policy at center stage of economic policy, we're manipulated by myths about the history of money.  The truth is out there, for those that seek it. As in this excerpt from a recent IMF report. Contents Introduction History of money United Kingdom United States Summary About the Authors For More Information Excerpt … Continue reading The lost history of money, an antidote to the myths

What would a gold-backed currency do to America?

Summary:  The history of gold-based currencies, from Newton to the Great Depression, warns us that they are no panacea. If not carefully structured they can destroy an economy in extremis by preventing radical monetary easing.  This is part two of two looking at gold-based monetary systems, the theory and the history. See part one here. … Continue reading What would a gold-backed currency do to America?

Why do so many Americans want a gold-based currency?

Summary: Periods of economic stress tend to bring forth quack simplistic economic theories, like during the 1930s. We will see more of these if this slow period continues, more so if we have another recession before a recovery.   Not just gold, but other fringe ideas such as Ayn Rand and her mutant version of Marx's … Continue reading Why do so many Americans want a gold-based currency?