Back to the Gold Standard -- and the Great Depression

One of the central tenants of Ron Paul's presidential campaign is a return to the gold standard.




In this video, Russ Koesterich, iShares Global Chief Investment Strategist, explains what it would mean for the US and global economies if Ron Paul's wish was granted and the US dollar was once again tied to gold.

This video is the first in what will be an ongoing series from Russ on the market implications of the presidential campaign and policies proposed by the candidates.

Category:

People & Blogs

Tags:

• ron paul
• gold standard
• inflation
• dollar
• economy
• money
• credit
• debt
• banks
• lending
• labor
• loans
• depression
• great depression
• fed
• floating currency
• currency

[guzabuza]

You fucking second grade ECONonomist, it is not the amount of gold you have, IT IS THE PRICE! The US can return to a gold standard with 1 kilo of gold in the vaults, only difference that kilo of gold would be worth 15 trillion $. The money supply would NOT change! But either you are retarded and have 0 understanding have gold works or you are lying.

[jrjrg]

Ron Paul did not say he wants a return to the gold standard in its original form, and certainly not overnight.

[guzabuza]

@joshordable Yeah i find it mind boggling that these so called professional economist on wall street have problems of understanding BASIC economics 101. So it begs the question, are they really that stupid or do they lie each and every time they open their mouth? Either way, it is tragic, explains why the financial crisis came about, sheer stupidity and corruption. Buy the metals because this will get much worse before it gets any better.

[joshordable]

@guzabuza You are right. I basically just said the same thing and then scrolled down to see your post. Glad someone else "gets" it. They are basing their entire argument off of gold at it's current value.

[joshordable]

His flaw is that he is basing his entire argument off of the current value of gold. We do not need to reduce the amount of money in circulation. Going to a gold standard would simply raise the value of gold to match the amount of money currently in the marketplace, after that your currency would stabilize because it would be based off something tangible. There could be one once of gold left in the entire world and it would be enogh, it just depends on the value you place on it.

[nelly81842]

He wouldnt do it all at once, but he would work towards it. He would spend so much less, and would save our dollars Ron Paul 2012

[aaaaaaaaaa8920]

This guy is Jewish. No credibility.

[SquirrelHybrid]

His argument failed when he said there's more money than gold; it doesn't make sense to compare the two when 'total money' represents 'total gold' (correlation: the more money we print up, the price of gold goes up). I can see his point where there's so much money in circulation that everyone's savings would have their value diminished greatly if we switched to the gold standard... and to avoid that, we would need to take trillions of dollars out of circulation beforehand.

[Vegasgodless]

Last 4 years? This pundit needs a history education.