Unless the quantity of gold increases massively, you generally get little or no price inflation under a gold standard, and sometimes you get deflation. From Schiffgold at schiffgold.com:
On April 5 1933, Franklin D. Roosevelt abandoned the gold standard, wielding questionable legal power amidst America’s dire economic depression. His whimsical approach to monetary policy, including coin flips and lucky numbers, unleashed unprecedented inflation and price increases that have since amounted to nearly 2500%. Our guest commentator explores this tragic history and the legacy of enduring economic turmoil that still plagues America today.
The following article was originally published by the Mises Institute. The opinions expressed do not necessarily reflect those of Peter Schiff or SchiffGold.
The world is full of scraps of paper today.
– Benjamin Anderson, economist, Chase Manhattan Bank (1920 – 1939)
April 1933 found America mired in a crushing economic depression, and newly elected president Franklin DeLano Roosevelt — who had declared the previous month he had a legal power derived from the Trading with the Enemy Act to assume control of our monetary system — responded by taking America off the gold standard. That the Act, an unexploded legislative relic left over from the First World War, was completely irrelevant to the situation at hand (there was no “enemy” to speak of as the nation was at peace) proved an easily passed over quibble.
During FDR’s famous first hundred days, a blizzard of unread legislation sailed through Congress and what they missed was put into action by the president with a mere wave of his hand. FDR’s decree forbidding Americans to touch gold (the bureaucrats christened her Executive Order #6102) was but a sign of the times. It was the 1930s, the Strong Man was much in vogue, and despite growing up a wealthy momma’s boy, FDR was ours. Such are the odd things that a democracy can produce.
Comrade commissar FDR (CPUSA) and his there is nothing wrong with communism, some of them are my best friends quote.
Such as the entire state department since the 1930s.
Always a tip of the hat to Joe McCarthy, G. Edward Griffin and other exiles/dissenters from the CPUSA (D) wing of the big UNI.
One left the CPUSA (D) comrade plantation after witnessing the birth of his baby. (Whittaker Chambers)
O/T-On fire comments at certain pages where people are putting together the Big Picture.
Bravo!