That is the main reason that there was a Gold Standard in the first place and it did work a hundred years ago. But the Gold Standard became a completely inadequate and illusory means of providing currency stability in the decade following World War I. Clinging to it was certainly a factor in the collapse of the world's economies in the early 30s
As alluring as a return to it might seem, it would be a hundredfold less adequate now. Scott Sent from my iPhone On Oct 7, 2010, at 8:01 PM, Sarbajit Roy <[email protected]> wrote: > >He is correct, with one unspoken addition: You can't go broke if you can > >print your own money AND the creditor will accept it. > > >If you have a bookie who accepts RopellaBucks and pays in green backs, you > >will be good forever! If Greece can borrow dollars and pay in their own > >currency, same deal. > > 1) This is a compelling argument for a return to the Gold Standard. > 2) Substitute "UncleSam" for "Ropella" and add the following "walk softly and > carry a big stick to beat up weak nations and then compel them to buy little > sticks to 'defend' themselves which they must pay for in Ropella (sorry US) > bucks". > > On Fri, Oct 8, 2010 at 1:20 AM, ERIC P. CHARLES <[email protected]> wrote: > Glen, > He is correct, with one unspoken addition: You can't go broke if you can > print your own money AND the creditor will accept it. > > If you have a bookie who accepts RopellaBucks and pays in green backs, you > will be good forever! If Greece can borrow dollars and pay in their own > currency, same deal. > > I'm not sure how international borrowing works, but eventually someone will > stop accepting your currency if it has devalued too much. At some point after > that, other people will stop trading for it too, so you won't even be able to > convert your RopellaBucks into usable currency. Then, in the long run, you > might be even more screwed than the semi-screwed you are in the short run > from being stuck on the Euro, with no ability to escalate printing. > > Eric > > > ============================================================ > FRIAM Applied Complexity Group listserv > Meets Fridays 9a-11:30 at cafe at St. John's College > lectures, archives, unsubscribe, maps at http://www.friam.org
============================================================ FRIAM Applied Complexity Group listserv Meets Fridays 9a-11:30 at cafe at St. John's College lectures, archives, unsubscribe, maps at http://www.friam.org
