Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP Posting-Version: version B 2.10.2 9/18/84; site lanl.ARPA Path: utzoo!watmath!clyde!burl!ulysses!allegra!bellcore!decvax!linus!philabs!cmcl2!lanl!jlg From: jlg@lanl.ARPA Newsgroups: net.politics.theory Subject: Re: The gold standard. Message-ID: <21296@lanl.ARPA> Date: Fri, 8-Feb-85 17:44:15 EST Article-I.D.: lanl.21296 Posted: Fri Feb 8 17:44:15 1985 Date-Received: Tue, 12-Feb-85 04:42:41 EST References: <613@ukma.UUCP> <368@harvard.ARPA> <650@unmvax.UUCP> Sender: newsreader@lanl.ARPA Organization: Los Alamos National Laboratory Lines: 23 > The gold standard is not as tolerant of the Fed tampering with the money > supply as the fed wanted would have liked. It is easy to dupe the citizens > into a false sense of security with fiscal tricks. This sort of thing is > encouraged by our political system, because it allows the politicians to > look good while in office whilst passing off serious problems to the next > guy. Take a look at the national debt for an example of the sort of fiscal > buck passing that goes on... > > > --Cliff Wait a minute Cliff! You're the one that just finished saying that the government ir real rich and can only get richer. How is it that you now claim that it has a debt problem? The Fed gave up the gold standard in 1933 due to rapid deflation causing a run on the gold reserves. The proper course (to maintain the gold standard) would have been to cut back on the money supply. The liberal politicians then in office didn't think this would be good, and they wanted a quicker, more responsive, solution. Once off the gold standard, it's hard to return. J. Giles