Much Ado About Gold Standards

There is a lot of buzz about the gold standard in the news these days. Neocons, wanting to grab Libertarian votes, like to talk about the gold standard. Financial outlets like Bloomberg and other MSM are talking about the gold standard too. Although this is a small step in the right direction, a “gold standard” is actually a rigged standard.

When people hear the phrase, gold standard, they imagine a system where the dollar is backed by gold. Unfortunately, this is only partially true. When the government speaks of a gold standard, they are referring to a system where the government ties the dollar to gold and (this is the bad part) specifies the price of gold. It’s all about control.  You can guarantee any future attempts to create a gold standard will be rigged against us.

To be fair, a gold standard is better than pure fiat currency. It does keep government spending in check better than fiat, which the government can borrow from the Fed at will at your expense. In a free society, however, people would be free to use whatever medium they choose as money.  I would choose gold and silver.

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