Gold Standard

The May/June issue of Foreign Affairs, the organ of establishment policy, published

From National Review Online’s David Frum:

Make the dollar as good as gold and you eliminate the inflation problem and the business cycles that go along with it.

Why, after years of the market’s neglect of gold, is the paper money price of gold no

But then finally the masses wake up. They become suddenly aware of the fact that inflation is a deliberate policy and will go on endlessly. A breakdown occurs. The crack-up boom appears

Publisher Wiley Business Finance has released a new book, Gold: The On

But if investment-conference attendance is any indication, the price of gold and other commodities has a long way to go — up.

No doubt, the costs of a return to "sound money" — that is ending the government money-supply monopoly and returning the supply of money to free-market forces — would most likely be substantial. It would most likely entail a severe loss in output and employment, given that inflation has been allowed to have a say in the allocation of scarce resources for decades.

The result of the governments' and the unions' meddling with the height of wage rates cannot be anything else than an incessant increase in the number of unemployed.

Mises knew why abandoning the principle of sound money would be so problematic: "In the opinion of the public, more inflation and more credit expansion are the only remedy against the evils which inflation and credit expansion have brought about."