Counterpoint – Is Fiat Money better than the Gold Standard? February 21, 2009
Posted by Sunil Malhotra in Global Economy, Innovation, Leadership Innovation, Politics, Sustainable Innovation.Tags: deflation, Federal Reserve, Fiat currency, Fiat money, Globalization, gold standard, Inflation, Monetary, outsourcing, Supply and demand, value of money
3 comments
So here’s the rebuttal from the other camp. A comment I received on my previous post Printed Money, Gloom to Doom was from a friend who urged me to look at the opposite view. He said – “Sunil, I’m afraid you’re completely off the mark on money”.
There is no intrinsic virtue to the gold standard. The true basis of any currency is the productive capacity of the economy where it is printed. This has nothing to do with the quantity of gold held by the country. Your credit card issuing bank creates money when it gives you credit. The real issue is when the money supply goes out of kilter with the supply of goods and services in the economy. Right now, inflation is not a problem. Deflation is the threat facing the developed world. The US is tackling that by loosening money supply.
Here, let me help you get on the other side of the debate - “Fiat money is better than the Gold Standard”. The question is why. (more…)
Printed money, Gloom to Doom February 18, 2009
Posted by Sunil Malhotra in Corruption, General, Global Economy, Politics, Thought leadership.Tags: Capitalism, Global financial crisis, global meltdown, gold standard, Marketeering, Materialism, monopoly, Political leadership, reserves, Society and Culture, World War II
12 comments
First we go throw money at the financial crisis and then when we run out of it, we print some more. Great idea but who’re we trying to fool? We don’t need Nostradamus to tell us that, do we?
Orrin Woodward (celebrated Author of Launching a Leadership Revolution) wrote this on his blog yesterday …
Today, with a heavy heart, I will share breaking news on the immoral monetary activity of the Federal Reserve. Money supply must be tied to economic output of a country or the printed money is merely paper only good for starting fires. …
… I am an American patriot and very proud to be called an American. Today is the saddest day for me as an American. The following graph clearly displays that America has chosen to inflate its money supply without real wealth to back the paper money and money credits. This is immoral in the highest degree. This is no different than if I owed someone a million dollars and I only had one hundred dollars so I handed him Monopoly money and told him that it was legal tender. Money should be like a promissory note and that is the true origin of paper money – a promised note to redeem the above legal tender with gold at the owner’s discretion. This is no longer the case and has proven to be to great a temptation in the hands of our quick fix political leadership. (more…)
