Geodan

Surprising Call for Return to the Gold Standard

Use of a gold standard would, at some point in the trading chain, throttle the flow of money through the aggregate decision of individuals, where it rightly belongs.

All of fiat money, leveraging, short selling, futures contracts other hypothecating schemes fail under their own momentum when they disconnect from aggregate individual flow control.

Example: Oil is now under $55 per barrel from a recent high of $142. Why? Because people still control the rate of fuel consumption, and the combination of all their individual reactions to high fuel prices restored fuel flow to the supply by throttling demand, practically overnight.

In a similar manner people balance production and consumption in their domain through monetary choices. Their direct participation is the enabling factor to a responsive economic scheme, and therefore to the success of the underlying monetary system. A gold standard seems to provide such control.