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mdyakiv

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  • A Return To The Gold Standard Could Destroy The Modern Economy [View article]
    Your example with the island economy is not exactly right. If five of those people find $90 of gold next day, which would bring their combined money supply to $100, the economy as a whole will not become larger by the factor of 10 but all the goods and services on average will go up 10 times.

    By the way your Greek reference is also incorrect. In Euro-zone there is another country Estonia which also lost its ability to print money but it did not spend like drunken sailor and cut government expenses instead of borrowing and then spending on public service sector salaries. Now they are the ones that are asked to bail out Greece (together with other EU countries). Austerity worked for Estonia it will work for Greece. The only question is how Greeks get there through inflation or austerity. The money that they borrowed is already gone (spent).
    Feb 25 03:36 AM | Likes Like |Link to Comment
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