Ron Paul Predicted Fannie/Freddie Fiasco - 5 Years Ago

[Willie99]

so as our economy grows faster than the others, our monetary supply doesn't increase accordingly since our gold reserves remain constant, thus stunting our growth, and this makes sense to some.

a restrictive money supply stunts growth

gold is a commodity to bought and sold with money, not used to create money supply

it's dust, and only has value we assign to it.

 

[xpanda]

This is because you're only measuring growth in price increases. What if you measured growth in terms of productivity, or utility, or even price decreases?

Why do prices have to rise for there to be increases in our standard of living?

 

[xpanda]

Put another way: if the value of your money remains constant over time, and firms depend on improved efficiencies to compete, so that the net effect is a dollar saved today buys a better product ten years later, would you not agree, then, that the standard of living has increased for that saver?

Could you not agree that a retiree's life savings would ensure them an improving standard of living through their golden years under the gold standard than the inflationary fiat of today, put in these terms? Isn't that preferable to what is happening as we speak?

 

[levistep]

This is because you're only measuring growth in price increases. What if you measured growth in terms of productivity, or utility, or even price decreases?

Why do prices have to rise for there to be increases in our standard of living?

This seems like such a simple concept but the average American's understanding of the economy is so perverted that they can't grasp it.