DISCOVERING THE LEMONS

What we need is a monetary formula that allows for us to control the quantity of money in circulation as this will allow not just some us but for all of us to have as much money as we need or even just desire. Any money supply such as one that is backed by gold or anything else that will limit it, will by its very nature prevent the people who need money the most an ability to get it.

 

DISCOVERING THE LEMONS

If the simple limiting of money in circulation is all that is needed, we can simply and easily pass a law that will do that, but it's not. Controlling the quantity of money of course produces the problem of knowing exactly how much money is needed in circulation, and this is something we can never know, as long as our money supply is limited to individuals who are determined to be credit worthy by the bank. Those people who do not meet bank standards will not only be denied their desires, they could also be denied the necessities of life as well. Necessities such as food, clothing and shelter. Ponder this, during the panic of 1907 and the great depression were we on the gold standard? Was there ever a time that we were on the gold standard that we did not have a substantial amount of the population in poverty, inflation and high taxes?

Obviously the gold standard has nothing to due with these things as far as being a cure for their cause. Since by its very nature there is not enough gold to go around to meet the needs of all the people, we should stop wasting our time on re-trying something that did not work in the past. Instead we should begin to look for a new and real solution to the monetary system that would best serve the needs of all the people. Also, when referring to good times when we were on the gold standard. No one ever seems to take into account any other factors. Factors like the Gold Rush, the industrial revolution and the increase in immigration providing for cheap labor. A factor that causes the lose of American jobs. The gold standard does not prevent this.

Economics needs to be thought about using our logic, reason and common sense. Since things are not working, logic dictates that if not all, that at the very least some of our economic formulas and ideas we accept today as right, must be wrong. If something was used in the past and it did not work. Is it logical to return to it? So is it logical to return to a limiting gold standard? I think not, what do you think?

 
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