Comments on: Oil: The #1 Reason We Should Return to the Gold Standard http://www.citizeneconomists.com/blogs/2008/07/10/oil-the-1-reason-we-should-return-to-the-gold-standard/ Citizen Economists is an online economics magazine written by citizen journalists. These ordinary citizens provide reports and commentary on the current events affecting the economics of the fields they work in. Thu, 18 Mar 2010 18:10:48 -0400 http://wordpress.org/?v=2.8.4 hourly 1 By: Dirk http://www.citizeneconomists.com/blogs/2008/07/10/oil-the-1-reason-we-should-return-to-the-gold-standard/comment-page-1/#comment-3399 Dirk Mon, 24 Nov 2008 04:01:42 +0000 http://www.amateureconomists.com/blogs/?p=95#comment-3399 The only problem with your analysis is that is presumes that as more goods and services are created by burgeoning population, technology, and trade, more gold will be discovered at the same pace, or that there is some kind of correlation. And if money does not increase at the same rate, then you have deflation, the psychological effects of which are devestating- those without money are better off hoarding than spending or investing then. Does it even make sense to tell the new entrants to the world economy to "bring your gold" so they can participate? If you want to try to fix money value to a precious commodity, figure out an "energy" metric that would total oil, solar, wind, coal, nuclear, and every other current source, and peg money supply to that- at least that makes some sense. The only problem with your analysis is that is presumes that as more goods and services are created by burgeoning population, technology, and trade, more gold will be discovered at the same pace, or that there is some kind of correlation. And if money does not increase at the same rate, then you have deflation, the psychological effects of which are devestating- those without money are better off hoarding than spending or investing then.

Does it even make sense to tell the new entrants to the world economy to “bring your gold” so they can participate? If you want to try to fix money value to a precious commodity, figure out an “energy” metric that would total oil, solar, wind, coal, nuclear, and every other current source, and peg money supply to that- at least that makes some sense.

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