Comments on: Wall Street Journal touts for a Gold Standard http://blog.libertarian.org.au/2008/10/02/wall-street-journal-touts-for-a-gold-standard/ Australian Libertarian Society Blog Fri, 10 Sep 2010 21:10:27 +0000 hourly 1 http://wordpress.com/ By: jason http://blog.libertarian.org.au/2008/10/02/wall-street-journal-touts-for-a-gold-standard/#comment-61189 jason Sat, 14 Feb 2009 10:46:05 +0000 http://alsblog.wordpress.com/?p=1533#comment-61189 The gold standard would make the government more honest, reduce unnecessary warfare and pork programs and relieve the American people from having to pay interest to a private organization (the Fed). I just covered this article and my thoughts here: http://www.goldstockbull.com/wall-street-journal-calls-for-return-to-gold-standard/ The gold standard would make the government more honest, reduce unnecessary warfare and pork programs and relieve the American people from having to pay interest to a private organization (the Fed).

I just covered this article and my thoughts here:

http://www.goldstockbull.com/wall-street-journal-calls-for-return-to-gold-standard/

]]> By: Club Troppo » Money and Meteorites http://blog.libertarian.org.au/2008/10/02/wall-street-journal-touts-for-a-gold-standard/#comment-55342 Club Troppo » Money and Meteorites Sat, 01 Nov 2008 04:29:43 +0000 http://alsblog.wordpress.com/?p=1533#comment-55342 [...] Via Thoughts on Freedom comes an op-ed in the Wall Street Journal rehashing the argument, common amongst Austrians, that central banks should be abolished or downsized in favour of a return to the gold standard: In the aftermath of this financial catastrophe, as we sort out causes and assign blame, with experts offering various solutions — More regulation! Less complex financial instruments! — let’s not lose sight of the most fundamental component of finance. No credit-default swap, no exotic derivative, can be structured without stipulating the monetary unit of account in which its value is calculated. Money is the medium of exchange — the measure, the standard, the store of value — which defines the very substance of the economic contract between buyer and seller. It is the basic element, the atom of financial matter. [...] [...] Via Thoughts on Freedom comes an op-ed in the Wall Street Journal rehashing the argument, common amongst Austrians, that central banks should be abolished or downsized in favour of a return to the gold standard: In the aftermath of this financial catastrophe, as we sort out causes and assign blame, with experts offering various solutions — More regulation! Less complex financial instruments! — let’s not lose sight of the most fundamental component of finance. No credit-default swap, no exotic derivative, can be structured without stipulating the monetary unit of account in which its value is calculated. Money is the medium of exchange — the measure, the standard, the store of value — which defines the very substance of the economic contract between buyer and seller. It is the basic element, the atom of financial matter. [...]

]]> By: nicholas gray http://blog.libertarian.org.au/2008/10/02/wall-street-journal-touts-for-a-gold-standard/#comment-54426 nicholas gray Mon, 13 Oct 2008 23:15:33 +0000 http://alsblog.wordpress.com/?p=1533#comment-54426 When the colour is chiefly Gold, And the second name of the party is the Gold Party, then we'll be making progress. When the colour is chiefly Gold, And the second name of the party is the Gold Party, then we’ll be making progress.

]]> By: TerjeP (say tay-a) http://blog.libertarian.org.au/2008/10/02/wall-street-journal-touts-for-a-gold-standard/#comment-54344 TerjeP (say tay-a) Sun, 12 Oct 2008 21:04:06 +0000 http://alsblog.wordpress.com/?p=1533#comment-54344 The colours of the LDP already includes gold. http://www.ldp.org.au The colours of the LDP already includes gold.

http://www.ldp.org.au

]]> By: nicholas gray http://blog.libertarian.org.au/2008/10/02/wall-street-journal-touts-for-a-gold-standard/#comment-54090 nicholas gray Tue, 07 Oct 2008 00:05:55 +0000 http://alsblog.wordpress.com/?p=1533#comment-54090 TerjeP (can I call you Terjep?), maybe the L&D party could simply adopt gold as its' colour? We can keep gold metal standard as a low-priority policy, until people are ready for more solid economic food. TerjeP (can I call you Terjep?), maybe the L&D party could simply adopt gold as its’ colour? We can keep gold metal standard as a low-priority policy, until people are ready for more solid economic food.

]]> By: TerjeP (say tay-a) http://blog.libertarian.org.au/2008/10/02/wall-street-journal-touts-for-a-gold-standard/#comment-53955 TerjeP (say tay-a) Fri, 03 Oct 2008 21:35:34 +0000 http://alsblog.wordpress.com/?p=1533#comment-53955 Nicholas - I agree, however I don't think the LDP is ready for a gold standard policy. Some people would feel that it is too much of a fringe issue. Personally I think monetary reform is central to making capitalism popular again, however there is a lack of concensus on the detail. Nicholas – I agree, however I don’t think the LDP is ready for a gold standard policy. Some people would feel that it is too much of a fringe issue. Personally I think monetary reform is central to making capitalism popular again, however there is a lack of concensus on the detail.

]]> By: TerjeP (say tay-a) http://blog.libertarian.org.au/2008/10/02/wall-street-journal-touts-for-a-gold-standard/#comment-53953 TerjeP (say tay-a) Fri, 03 Oct 2008 21:28:52 +0000 http://alsblog.wordpress.com/?p=1533#comment-53953 Graeme, The currency is already adequately backed by assets. You can appoint gold as the measure of value without changing the assets classes that back the currency. So in Australias case we could still back the Aussie with bonds, Euro, Yen and Greenbacks whilst fixing the rate of currency creation / destruction so as to stabilise the price relative to gold. If you thought that 100% gold backing was preferable you could then over time swap out the assets backing the currency. If the Europeans, Japanese and Americans also went on a gold standard and decided to take the same approach then the foreign currency assets would mostly self extinguish. In other words as the Japanese sold off their Aussies we would need to mop them up to maintain the gold price. We could mop them up using our Yen. In the end there would be less Aussies on issue and less Yen in our vault. I wouldn't ban fractional reserve banking but you could take my approach to a gold standard as a gateway to your preferred destination. I'd just get off the bus earlier than you. However at least we could share the price of the ticket part of the way. Graeme,

The currency is already adequately backed by assets. You can appoint gold as the measure of value without changing the assets classes that back the currency. So in Australias case we could still back the Aussie with bonds, Euro, Yen and Greenbacks whilst fixing the rate of currency creation / destruction so as to stabilise the price relative to gold.

If you thought that 100% gold backing was preferable you could then over time swap out the assets backing the currency. If the Europeans, Japanese and Americans also went on a gold standard and decided to take the same approach then the foreign currency assets would mostly self extinguish. In other words as the Japanese sold off their Aussies we would need to mop them up to maintain the gold price. We could mop them up using our Yen. In the end there would be less Aussies on issue and less Yen in our vault.

I wouldn’t ban fractional reserve banking but you could take my approach to a gold standard as a gateway to your preferred destination. I’d just get off the bus earlier than you. However at least we could share the price of the ticket part of the way.

]]> By: graemebird http://blog.libertarian.org.au/2008/10/02/wall-street-journal-touts-for-a-gold-standard/#comment-53935 graemebird Fri, 03 Oct 2008 09:09:46 +0000 http://alsblog.wordpress.com/?p=1533#comment-53935 Great idea. The "Gold Standard Party" has some real sparkle to it. And we would likely have got a lot of publicity right about now. Great idea. The “Gold Standard Party” has some real sparkle to it. And we would likely have got a lot of publicity right about now.

]]> By: nicholas gray http://blog.libertarian.org.au/2008/10/02/wall-street-journal-touts-for-a-gold-standard/#comment-53919 nicholas gray Fri, 03 Oct 2008 05:06:14 +0000 http://alsblog.wordpress.com/?p=1533#comment-53919 If the L&D party had been calling itself the Gold Party, think what free publicity this would be giving them! If the L&D party had been calling itself the Gold Party, think what free publicity this would be giving them!

]]> By: A H http://blog.libertarian.org.au/2008/10/02/wall-street-journal-touts-for-a-gold-standard/#comment-53870 A H Thu, 02 Oct 2008 09:10:15 +0000 http://alsblog.wordpress.com/?p=1533#comment-53870 A gold standard would prevent governments from manipulating the exchange rate. It also prevents currency debasement due to 'printing'. A gold standard would prevent governments from manipulating the exchange rate. It also prevents currency debasement due to ‘printing’.

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