Quote:
Originally Posted by David Newman
It sets us back 80 years because it puts constraints on the economy that are unnecessary (any commodity backed currency will). In any fixed currency system in the world that I am aware of, economic booms are boomier (my love for subwoofers is coming through) and down turns are steeper, harsher and longer lived. We've had 5 depressions in our country's history. IIRC, all 5 of them occurred during eras of fixed currency monetary system. Also, all of the concerns of insolvency become a reality rather than a misunderstanding of monetary operations.
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Another excellent post. The radical boom and bust cycles of past versions of capitalism were the reason for adopting the Keynesian model in the first place.
Go back, and we will learn the hard way, why the old system was rejected.
Unfortunately, that is the only way some of us learn.
Dave
Dave