February 20, 2012 § Leave a comment

Real Currencies

You are aware that the gold standard has been the ruin of the States which adopted it, for it has not been able to satisfy the demands for money, the more so that we have removed gold from circulation as far as possible.’
Protocol 20

One of the key problems with Gold as currency is that it is strongly deflationary. Austrian Economics both denies deflation is disastrous and that Gold is deflationary and this is one of its major weaknesses.

The fact that Gold is strongly deflationary has always been one of the key issues in the debate, even in the late 1800’s.

Populists throughout the 19th and early 20th century have always fought for more plentiful money. The famous Bryant exclamation ‘you shall not crucify labor on a cross of Gold’ was not in the context of debt free money, but to allow Silver to circulate besides Gold…

View original post 1,021 more words


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

What’s this?

You are currently reading at Recovering Austrians.


%d bloggers like this: