How is this propaganda? They're highlighting valid concerns that come with a gold standard??? It seems to be supporting the gold standard to me. EDIT: It occurs to me that if they really wanted to slander the idea, they could pull from any one of a number of critical sources.
I'll debunk that article in one sentence. A proper return to a gold standard would revalue gold higher, possibly much, much higher, enabling the current gold stock to account for the supply of money.
Legalize monetary competition. Let free market forces determine the value of your money. You can run the economy on any amount of money. Your dollar in 1971 prices should be worth at least 30 right now. Prices don't go up normally actually in a capitalistic society they almost always go down due to resources going farther because of better means of production from knowledge, savings and investment in capital. No, prices dont go up your dollars purchasing power is going down because there are more paper dollars being produced faster then capitalism can produce stuff. People are really confused about money and what it is and this is done to the public on purpose by state ran schooling. They have everyone convinced that they want paper? When what you should want is something that stores your value. And fiat paper money in a fractional reserve system is definitely not it.
For it to cover the federal debt, one ounce of gold would have to be valued at $57,635, almost 34 times what it is now. What happens if it doesn't rise that much? The gold standard will great once this propped up economy collapses but implementing it with a 15 trillion dollar debt is unrealistic. The article is not propaganda and raises some good points.
There's no reason to cover the federal debt, which is actually multiples of $15 trillion when unfunded liabilities are counted. The debt can't be paid, it's too large. Fiat money can't pay it, gold can't pay it, nothing can. It's simply not payable. We will default on the debt, there's no other option. The government prefers to default by paying with devalued fiat Dollars, but it's still a default.
“If we could turn the clock back maybe 150 years then it’s possible for the U.S. dollar to be linked to gold,” said Moorad Choudhry, treasurer of the corporate banking division of RBS, "I think it’s absolutely nonsensical. It won’t work. There’s a very good reason (the U.S.) unhooked it in 1971. It’s because their deficit didn’t enable them to maintain (the gold standard) with their supply of gold.“ And therein lies the meat of the article. Basically, the government can't create itself more money with a gold standard.
The government doesn't need to be printing up more counterfeit bills. That's what got us into the debt in the first place. That's the whole point in going to the gold standard, if you don't inflate the money supply, prices don't constantly go up.