re: #54 ReamWorks SKG

I have a compromise: add an “l” and put us back on the Gold Standard.

In Gold We Trust

Bad idea. Won’t stabilize a thing.

Under the gold standard America had no major financial panics other than in 1873, 1884, 1890, 1893, 1907, 1930, 1931, 1932, and 1933. Oh, wait.

from Krugman

Other arguments against.

“When we peg the dollar to gold we have to raise interest rates when gold is scarce, regardless of the state of the economy. This policy inflexibility was the major cause of the Great Depression, as governments were forced to tighten policy at the worst possible moment.”