Economic Warfare

[slapout9]

Hi Shek, I am not advocating that we return to a gold standard as you say there were certainly problems with it. But I think you are missing the point of a gold standard. A paper note for 5$ could be turned in for 5$ gold coin measured by weight!!! that is why it is a universal standard of value and you buy and sell it by the weight!!! the difference in fiat money(called currency) is reflected by the price (an accounting store of value set by policy...which makes it subject to manipulation) but five ounces of gold is five ounces of gold no matter where you are and that cannot be changed (by man) because it is a physical quantity.

The problem as Keynes pointed out is that is not a very good way to run a modern economy so if you have sound economic policies (tied to physical production of life support) linked with sound monetary policy you can manage large modern economies. But if you have unscrupulous people that manipulate monetary policy mainly divorcing it from physical economic policy you can cause your own country serious problems not to mention use it as a weapon against other countries.