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Return to Gold
Pinnacle Digest writes: The bantering of a return to the gold standard is becoming more frequent as governments and central banks have proven, as they always do, their inability to implement and maintain sound monetary policies. As debts in western nations run away into the sky, will citizens demand that gold, the only true money which has stood the test of time, be reinstated?
The endless debate of the fiat currency vs. gold standard which Terry Coxon, from Casey Research bravely explains, comes down to one thing: Which system gets stuck with responsibility for the Great Depression of the 1930s. He bluntly explains not a whole lot would change as most people think or fear.
After dispelling many myths about all the great fixes a gold standard would bring, a more realistic set of results are discussed. Holding central banks such as the Federal Reserve responsible for embarrassing bad behavior is something a gold standard would achieve.
In the end, a gold standard simply carries a promise that politicians who spend recklessly will be ashamed and called out for their actions. The only way central banks can avoid this is by not printing recklessly when the economy flounders. Herein lies the difficulty of re-establishing the gold standard with our current economic leaders at the helm.
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