Sound Money

[paddybangers]

I assert that had we as a country remained on the sterling silver standard we would not be facing the biggest disaster in the country's history. Economic growth would have been slower but more stable. Fractional reserve banking is the biggest curse on this land, we need a return to sound money, money that cannot be inflated. Silver/gold maintain their purchasing power.

<Mod> Moved to Economy. </Mod>

[Guinnesslad]

Bring back the Irish punt I say!

[PaintingMedium]

we would not be facing the biggest disaster in the country's history.

I am sure I can think of a couple of things which might compete with this "disaster"!

[constitutionus]

was listening to the radio sunday morning to i think the right angle on newstalk (couldve been a small section on sams smyths sunday supplement, i was half asleep and nursing a hangover ) and rurai quinn was on saying if it wasnt for the euro we'd be looking at a foreign currency apocalypse now with currencies devaluing left right and centre.

can see what he means, personally im doing all right and the low interest rates are helping my mortgage, but the euros crucifying exporters. what ever why he trys to cut it business is ************************ed in the short term. you can bet your hole the government, despite what they'll say publicly, would LOVE to devalue and lower rates right now

[paddybangers]

You may have a low interest rate on your mortgage but your paying more for food and energy, and this rise has only just begun. What the Gov. needs to do is raise rates, printing money is just throwing fuel on the fire. The Fed is printing money at 15%, the UK at 12%, China 16% etc, money is losing its purchasing power. All previous FIAT currencies have ended in disaster e.g. Weimar Rep. Tell all those millionaires in Zimbabwe how great inflation is.

[Squire Allworthy]

Who sets the value of Gold or silver for this reintroduction to work. If introduced what if demand for the metals outstrips supply does the value of the Euro in our pocket also rocket?

For us all to return to such standard would require a return to stability before re entry and if we return to stability why bother?

During the 19th and early 20th century when there was a Gold standard depressions and Bank panics were very common. More common than after the standard was abandoned. There are times when the ability to print or retract money can be a useful tool.

I would think long and hard before I would support the reintroduction of any such standard. A more constructive way forward would be to learn from recent events and modify the structures to ensure that they are less likely to implode in the future.

[youngdan]

Last August and later the ECB added about 600 billion Euros to the money supply and now when food prices are rising Cowen and company scratch their heads in mock bewilderment because up until now the public are too dim to understand the con game. They can even say it is beyond their control and all Europe is suffering. Any party who favoured giving monetary control away should never have gotten another vote but yet Bertie and Enda while being no Einsteins can still make eejits out of their supporters. Paddybangers, common sense like you're talking is scoffed at so they deserve everything they get and if they vote for Lisbon they deserve a double dose.

[paddybangers]

Who sets the value of Gold or silver for this reintroduction to work. If introduced what if demand for the metals outstrips supply does the value of the Euro in our pocket also rocket?

For us all to return to such standard would require a return to stability before re entry and if we return to stability why bother?

During the 19th and early 20th century when there was a Gold standard depressions and Bank panics were very common. More common than after the standard was abandoned. There are times when the ability to print or retract money can be a useful tool.

I would think long and hard before I would support the reintroduction of any such standard. A more constructive way forward would be to learn from recent events and modify the structures to ensure that they are less likely to implode in the future.

Who would set the price simple we would, 1oz silver = 20 Punts. Let the Free Market dictate how many goods that can purchase. As for runs on banks, it can only happen if the bank has lent more that it has in reserves, not possible on a gold/silver standard. Recessions are a normal part of the business cycle, Depressions occur when Gov. intervene. Tinkering with the system does nothing if the system is inherently flawed, as we are witnessing as I write this. As for learning from our mistakes, such a quaint notion.

[seabhcan]

I assert that had we as a country remained on the sterling silver standard we would not be facing the biggest disaster in the country's history. Economic growth would have been slower but more stable. Fractional reserve banking is the biggest curse on this land, we need a return to sound money, money that cannot be inflated. Silver/gold maintain their purchasing power.

Total crap. Deflation is far worse than inflation, and deflation is guarenteed under the gold standard. Who would invest money in an employment-creating business if keeping it in you sock will give a guarenteed return due to deflation.

Inflation is the driving force behind investment.

[paddybangers]

Yes seabhcan,

tell that to all the millionaires in Zimbabwe.