http://thenextrecession.wordpress.com/2012/08/29/the-republicans-and-the-gold-standard/
It is an irony that it was a Republican president that ditched the US
gold standard back in 1971. And, despite the talk, the Republicans now
will not readopt the gold standard and abolish the Federal Reserve,
despite the encouragement of the Tea Party, Ron Paul and the Austrians.
The gold standard idea has the merit of recognising that, unless money
becomes a commodity, it has no anchor to value. If dollars can be
‘created out of thin air’ and their number bear no relation to the value of
production in the economy, then credit becomes ‘fictitious’ and will only
increase the burden of the devaluation of capital when a slump
arrives. But a return to the gold standard that deliberately aims to
reduce credit induced ‘inflation’ by forcing up the value of the dollar
at the expense of more unemployment and bankruptcies in industry is just as
damaging as runaway inflation
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