Not enough Gold for a Gold Standard.........

[Mega]

http://www.telegraph.co.uk/finance/c...-standard.html

Mega's thoughts:- BOLLOCKS!

[don]

Re: Not enough Gold for a Gold Standard.........

how long would it take for the sheeple's faith in this misdirection play to play out? 5 years . . . 10? Then it would be on to the next disappearing rabbit trick . . . .

[wayiwalk]

Re: Not enough Gold for a Gold Standard.........

Ahh. So it sounds like we've reached "Peak Cheap Gold"

[LorenS]

Re: Not enough Gold for a Gold Standard.........

If the gold supply cannot grow quickly enough to facilitate trade, either global trade has to shrink – translating into reduced living standards – or the world faces deflationary pressures, he warns.

-- Because we've all seen how deflationary prices have decreased our standard of living and completely stifled computer/ internet/ smart phone/ TV/ GPS sales activity ???

There's plenty of gold, most of it is just sitting around in bank vaults. It could easily circulate as money instead of sitting around in nearly impossible to move 400 Oz bars.

Going to the gold standard requires people to learn new skills. It's a big change in the rules of the game. There's the key obstacle, it's psychological, not technical. People are used to money losing value. They're used to inflation. A gold standard is going to be like getting Americans to use Metric and Celsius. Really, it's not much different.

[don]

Re: Not enough Gold for a Gold Standard.........

--Going to the gold standard requires people to learn new skills. It's a big change in the rules of the game. There's the key obstacle, it's psychological, not technical. People are used to money losing value. They're used to inflation. A gold standard is going to be like getting Americans to use Metric and Celsius. Really, it's not much different.

It appears you may have overlooked the incredible advantage fiat currency has given 4 decades of FIRE. Getting Americans 'used to gold' is the barrier? Please. It's the vampire that needs blood, not the villagers unaccustomed to wearing silver crosses, that's the problem . . . .