Follow @PoliticsIE
 
 
 
Page 1 of 4 1234 LastLast
Results 1 to 10 of 36

Thread: Winston Churchill on the Gold-Standard

  1. #1
    Politics.ie Member
    Join Date
    Jun 2009
    Posts
    149
    Mentioned
    0 Post(s)

    Default Winston Churchill on the Gold-Standard

    Winston Churchill, as Chancellor of the Exchequer, reintroduced the gold-standard in 1925. In 1932, Churchill testified the following before the House of Commons:

    When I was moved by many arguments and forces in 1925 to return to the gold standard, I was assured by the highest experts, and our experts are men of great ability and of indisputable integrity and sincerity, that we were anchoring ourselves to reality and stability, and I accepted their advice. I take for myself and my colleagues of other days whatever degree of blame and burden for having accepted their advice. But what happened ? We have had no reality, no stability. The price of gold has risen since then by more than 70 per cent. That is as if a 12-inch foot rule had been stretched to 19 or 20 inches, as if the pound avoirdupois had suddenly become 23 or 24 ounces instead of 16. Look at what this has meant to everybody who has been compelled to execute their contracts upon this irrationally enhanced scale. Look at the gross unfairness of such distortion to all producers of new wealth, and to all that labour and science and enterprise can give us. Look at the enormously increased volume of commodities which have to be created in order to pay off the same mortgage debt or loan. Minor fluctuation might well be ignored, but I say quite seriously that this monetary convulsion has now reached a pitch where I am persuaded that the producers of new wealth will not tolerate indefinitely so hideous an oppression. . . . I therefore point to this evil, and to the search for the method's of remedying it as the first, second and third of all the problems which should command and rivet our thoughts.
    So, we can either listen to Ron Paul and the other 'experts' on the matter or we can look at the facts. Churchill listened to the 'experts' and reintroduced it. He saw its fundamental flaws first hand. Can the Austrian-supporters tell me why things would be different this time?
    "...Money exists not by nature but by law." Aristotle (Ethics, 1133)

  2. #2

    Default

    Quote Originally Posted by Kensington View Post
    Winston Churchill, as Chancellor of the Exchequer, reintroduced the gold-standard in 1925. In 1932, Churchill testified the following before the House of Commons:



    So, we can either listen to Ron Paul and the other 'experts' on the matter or we can look at the facts. Churchill listened to the 'experts' and reintroduced it. He saw its fundamental flaws first hand. Can the Austrian-supporters tell me why things would be different this time?
    The gold standard was reintroduced in 1925 because in 1914 it was suspended to fund World War 1 by printing Fiat currency. It bankrupted Britian. Its not Gold's fault. Furthermore the fractional reserve system went out of control in the late 20s leading to a credit crunch that caused the Great Depression I. Leaving the Gold Standard and letting that fool John WAYWARD Keynes go on his 1930s bender prolonged the Depression which was only solved when the contrived World War 2 happened.

    Gold rules. Austrian School of Economics is the only way. Ron Paul for President.

  3. #3
    Politics.ie Member
    Join Date
    Jun 2009
    Posts
    149
    Mentioned
    0 Post(s)

    Default

    The gold standard was reintroduced in 1925 because in 1914 it was suspended to fund World War 1 by printing Fiat currency. It bankrupted Britian. Its not Gold's fault.
    I wouldn't blame an inanimate mineral either. I do blame the contraction of the money supply by the introduction of a standard based on gold.

    Gold rules. Austrian School of Economics is the only way. Ron Paul for President.
    It's a pity that no one was there to shout that at Winston Churchill. It might have convinced him.
    "...Money exists not by nature but by law." Aristotle (Ethics, 1133)

  4. #4
    Politics.ie Member 20000miles's Avatar
    Join Date
    Aug 2008
    Location
    Blumenau
    Posts
    257
    Mentioned
    0 Post(s)

    Default

    Cassandra is pretty much spot on. The gold standard was suspended because some imperial powers wanted a killfest - fiat money made that possible. Had the UK returned to the gold standard in the 1920s at a realistic price parity there would have been no need for mass unemployment, or for a "revolutionary" new economics to explain it.

  5. #5
    Politics.ie Member
    Join Date
    Jun 2009
    Posts
    149
    Mentioned
    0 Post(s)

    Default

    So, you are suggesting that Britain could not have won World War 2. They did not have the money to pay for it so, therefore, should they have just acquiesced to Germany?

    Now i, being no expert (like poor Churchill), may interject, ' but why should Britain give up? It has the men to fight. it has the ability to build the weaponry to stand up to them. Now, i know it has not got enough gold to pay for it, but you do not build guns and ships out of gold. let us abandon Gold as our money and replace it with something that is more abundant.'
    "...Money exists not by nature but by law." Aristotle (Ethics, 1133)

  6. #6
    Politics.ie Newbie Aj1990's Avatar
    Join Date
    Jul 2009
    Posts
    76
    Mentioned
    0 Post(s)

    Default

    Why not a combination of Platinum,Gold,Silver,Copper,Nickle?

  7. #7
    Politics.ie Member 20000miles's Avatar
    Join Date
    Aug 2008
    Location
    Blumenau
    Posts
    257
    Mentioned
    0 Post(s)

    Default

    I'm suggesting it's really difficult to fight wars while on a gold standard.

  8. #8
    Politics.ie Member
    Join Date
    Jun 2009
    Posts
    149
    Mentioned
    0 Post(s)

    Default

    That is not all you are saying. You are suggesting that it is really difficult to undertake any great economic undertaking on a gold standard, even if we have the skills and resources to do so.
    "...Money exists not by nature but by law." Aristotle (Ethics, 1133)

  9. #9
    Politics.ie Member
    Join Date
    Apr 2009
    Location
    Bandit Country
    Posts
    197
    Mentioned
    0 Post(s)

    Default

    Quote Originally Posted by 20000miles View Post
    I'm suggesting it's really difficult to fight wars while on a gold standard.
    In the middle of an economic crisis that was caused by the constant inflation of bubbles, the erosion of savings, the creation of fake wealth that existed only on paper and the belief in the Greenspan put, it is amusing to me that people still defend the economic status quo. So many think that they can be saved from the business cycle and that printing money and encouraging borrowing will somehow fix it all- in fact they are only postponing the inevitable decline of the dollar and the end of the American empire.

  10. #10
    Politics.ie Member 20000miles's Avatar
    Join Date
    Aug 2008
    Location
    Blumenau
    Posts
    257
    Mentioned
    0 Post(s)

    Default

    Quote Originally Posted by Kensington View Post
    That is not all you are saying. You are suggesting that it is really difficult to undertake any great economic undertaking on a gold standard, even if we have the skills and resources to do so.
    Any unwanted economic undertaking, yes.

Page 1 of 4 1234 LastLast

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •