People are still crazy in love with the gold standard. Some academics, businessmen and crazy politicians still believe it is ideal coverage against inflation of prices. These obsessive with gold say that gold has a natural scarcity because nobody can increase your quantity only because they so desire. They say that if gold is the only way to create the national money, then money supply cannot get out of control and cause inflation. For even more details, read what Daryl Katz says on the issue. These locos also say that if gold is used, the only way in which countries can make payments of trade is with balance of payments under the control of the gold.

They simply do not recognize that the gold standard is not working. Here why. So little gold is extracted today that global trade and investment is closed to a minimum because of a serious lack of monetary reserves. In reality, nothing has value unless you say Yes. They are the thoughts and actions of people working together that creates real wealth in the world. Also forget the obsessive with gold do not inflate the prices and because. When bad recessions or depressions affect producers, manufacturers and retailers, these comenzian to reduce prices in general.

This means that the global economy can be affected by deflation, which is the ugly cousin of inflation. Finally, nor accept the fact that Governments can arbitrarily expel the gold standard when they so wish. So I say to people that the gold standard will never be. In fact, I call the new base metal gold.