Ron Paul's Faith-based Monetary Policy

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I'm guessing that most people who want to return to a gold standard have this desire because Ron Paul desires it, and they are infatuated with Ron Paul.

Why does Ron Paul like it?

ruveyn

I don't know. Maybe something he read in a Libertarian newsletter once.

I think there is a more substantial reason. Gold based money cannot be arbitrarily increased in supply by a political act. The amount of backed money in circulation is limited by nature, not by the whims of politicians winning the favors of the public. But there is a catch. Regardless of how the money is backed, either by metal or fiat there has to be a method of granting sound credit to expand the economy or at the very least replace worn out or obsolete machinery. Without some kind of sound credit mechanism a market based economy while languish and die.

ruveyn

Milton Friedman on the Gold Standard

[youtube]http://www.youtube.com/watch?v=MvBCDS-y8vc[/youtube]