E.M.Smith

G-20 Summit: A New World Order?

France was in the G4 because they were part of the winners of WWII and historically part of the class of European colonialists (i.e. they could 'stand in' for all the francophone colonies... in a colonial mindset sort of way...)

No inflation related to gold found in California? Might I remind you of eggs selling for $1 each when that was a day's wages nationally? Localized, yes, but so was the gold...

THE major problem with a gold currency is Keynes. You must accept that monetary policy can not be used to dampen business cycles. If money velocity drops, nothing can be done.

Aggregat Prices=Money Supply x Velocity of money.

Individual spenders control V. If you make M.S. static, there is nothing you can do to control panics, recessions, and inflation.

Wether this is a good thing or not depends on how much you think wobbly MS, thanks to government actions, causes panics, recessions, and inflation in the first place...

(The minor problem with a gold standard is that it makes money supply dependent on who has the gold mines. Russia and South Africa are large players. Part of why Nixon dumped the gold standard was that the Soviet Union was jerking the gold supply around (to annoy us or due to central planners being bogus, but why doesn't matter) and he did not like having U.S. money supply controlled by the Soviets.)