In response to:

Can We Envision a World without a Central Bank?

SMyles Wrote: Sep 20, 2012 6:24 PM
Do you consider the dollar losing over 90% of it's purchasing power a success?
Sid14 Wrote: Sep 21, 2012 5:03 PM
The gold standard didn't really "fail", it just prevented the unfettered expansion of the economy. By moving to a counterfeit currency that could be printed "as needed", the economy could be expanded rapidly, pushing the consequences of it into the future. We are seeing those consequences in our 16 TR debt and crashing economy. Yes, the "gold standard" lasted till 1971, but FDR's confiscation and illegalization of it in 1934 pretty much made it a moot point.
Blair31 Wrote: Sep 20, 2012 7:47 PM
No, but the gold standard failed during the Great Depression. Just watch Milton Friedman.

I’ve expressed concern about QE3 and other decisions by the Federal Reserve about monetary policy, but I have also admitted that it’s difficult to know the right monetary policy because it requires having a good idea about both the demand for money and the supply of money.

But this raises a bigger issue. The only reason we expect the Fed to “know the right monetary policy” is because it’s been assigned a monopoly role in the economy. But not just a monopoly role, we also expect the Fed to be some sort of omniscient central planner, knowing when...

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