Book TV: After Words with Liaquat Ahamed "Lords of Finance"

[pkudlach]

The gold standard constricts government spending. The FED helping London had unintended consequences. The FED exceeded its intended authority in doing so. By inflating the dollar to help London, it created a boom in the stock market as capital was created, and the excess was used to invest. This was the boom. The bust comes as the steam runs out, that is available capital can not sustain the prices run up in the boom.

[howudoin27]

The gold standard would constrict spending from borrowed "fiat" money but not from wasteful spending which could be much more harmful depending on the level of stupidity at play.

I disagree with the  gold standard because in a sense it is "fiat" money. It does not reflect the true wealth of our nation. Gold is but one resource. The amount of money should reflect the nation's true wealth based on products produced or manufactured.

[YOELTHEKING]

Isn't it possible that the four central bankers that "attempted to rebuild the global economy following WWI" intentionally meant to contribute to or initiate the economic collapse that led to the "Great Depression" ? And why is it that the U.S. took itself off the gold standard for a fiat system?