Economics Questions

The market has this thing called a price. As supply and demand changes, the price changes. If people like the price, they trade. If they don't, that means they have some better alternative.

Nothing about this implies people should be imposed upon, and have their choices taken away.

Re: Quick "shift to gold standard" question

ViennaSausage — Wed, 07 Sep 2011 02:31:21 GMT

Ron Paul actually argues for a competing currency against the dollar, not necessarily that the dollar be pegged to gold, or vice versa. That competing currency could be anything, but would most likely be gold.

Goods and services would then be priced in accordingly in oz of gold, instead of dollars.

Quick "shift to gold standard" question

Wheylous — Wed, 07 Sep 2011 02:02:24 GMT

I saw this comment on a youtube video:

"There is currently 166,600 metric tonnes of Gold mined in human history. 32,150.722 troy ounces in every tonne. Gold closed at $1,813.80 per troy ounce on august 26th. That according to august 26th =$9.7 trillion. There is in fact $9.3 trillion in Dollars in circulation. The US has only 8,133 metric tonnes of gold or roughly 4.8 percent of all the gold ever mined. PLEASE EXPLAIN WITH THESE FACTS HOW RON PAUL CAN MAKE THE GOLD STANDARD WORK????"

What is the response to this? Is it that gold is currenlty undervalued? Is it that the currency in circulation will actually be reduced?

Sorry for my ignorance.