China buys gold, challenges US dollar

Discussion in 'Politics' started by Hubert J. Farnsworth, Sep 15, 2011.


  1. Banks are not the enemy. It is the government giving a central bank a legal monopoly of the nation's money supply that makes it bad. Break the government given monopoly and the bailouts and let the free market function. If that happened banks would not be a problem.

    The "not having enough gold" thing is a myth perpetrated by Keynesians. As long as there is enough currency in circulation to facilitate trade no other considerations to supply are needed. An economy can grow as fast it wants to under a gold standard. All that would happen is that each monetary unit would gain in purchasing power.

    It would be the exact opposite of what we have now. Instead of prices constantly rising due to expansion of the money supply, prices would fall. Even if you didn't get a raise at your job, your real wages increase because each unit would perform more work. As it is now, you would have to get at least 5-10% raises every year in order for you to just break even with price inflation. Of course very few people get that, so what is actually happening is the government is stealing your money in a very hidden way that most people can't recognize.
     
  2. BTW Austrians don't necessarily say that we should go back to a gold standard. The most common stance is that we should have a free market in regards to currency. Those currencies can be backed or not backed by whatever the makers of those currencies want. Austrians believe, rightfully so, that if this happens, gold and silver will naturally emerge as the currency/currencies of choice.
     
  3. [ame=http://www.youtube.com/watch?v=J-GuY8eaTBA]Peter Schiff - CNN April 25 2011 U.S. vs. China - YouTube[/ame]
     

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