View Single Post
Old 05-29-2010, 11:17 AM   #12
ronmcdon
Post Whore!
 
ronmcdon's Avatar
 
Join Date: Sep 2005
Location: beverly hills
Age: 86
Posts: 4,254
Trader Rating: (6)
ronmcdon is close to perfectionronmcdon is close to perfectionronmcdon is close to perfectionronmcdon is close to perfectionronmcdon is close to perfectionronmcdon is close to perfectionronmcdon is close to perfectionronmcdon is close to perfectionronmcdon is close to perfectionronmcdon is close to perfectionronmcdon is close to perfection
i think some degree of inflation is not unhealthy.
the economy grows and it's not unreasonable to expect there is a need for more currency to circulate as a result.
Imo, there should be a cap as to how much bills can be printed, as to discourage inflation.

About the gold standard,
I'm skeptical the very limited supply of gold, as a commodity, could sustain the size of any large economy.
Gold is around 1,200-1,300-ish/oz (very low supply relative to demand).
If this was enacted, I can see very high de-flation, and that isn't great either.
Maybe a more modest commodity like silver ($13/oz, higher supply relative to demand, essentially as stable) would be more practical.

Interestingly even the Euro isn't doing all that great these days.
It's just inevitable that paper currency is volatile to some degree.
ronmcdon is offline   Reply With Quote