Yes. I wrote that. Why do you ask?. I try to be very careful Re attribution. And as far as I know it is true, although I should have written ..."could" turn around.... I don't know that the did sell it at that time, but they could have because when the CB was redeeming notes at 35$ per oz , gold on the open market was being bought at $45. This is why the U.S. went off the gold standard. It was an action taken reluctantly. I wonder what alternative Stockman thinks might have been better?
That of course was the eventual outcome of going to an entirely fiat currency. So accepting that the gold standard had become untenable, what alternative course of action would you have preferred --presumably one that would have both gotten round the gold problem and also kept at bay dollar devaluation? Incidentally, in principle a fiat currency can both inflate and deflate, so it isn't a fiat currency per se that causes currency deflation?
"currency deflation" is that another of your jokes. the only thing associated with fiat currencies is inflation. the sole major exception was the yen. definition" " a situation in which less money becomes available without a drop in production, causing prices to fall, production to slow down, and people to lose their jobs"
Globalization is zero-sum. It's prudent for nations to amend their constitutions/laws/rules/regulations/policies accordingly.
Fair enough. I'd like to hear both your own and Stockman's suggestions for alternatives to Nixon's shock. You both seem to be rather critical of the move to fiat currency, so my question to you both is what do you think should have been done instead. If you don't have an answer, then the polite thing to do would be to temper your judgement, wouldn't it?
"If you don't have an answer, then the polite thing to do would be to temper your judgement, wouldn't it?" condescension will get you nowhere other than to reveal how foolish you truly are. step 1 is to get rid of the fed. step 2 is back the paper currency with gold step 3 nobody receives federal unemployment or welfare benefits unless they work or go to school to receive them. step 4 privatize transportation inc. highways and buses and subways instead of reading karl max you should read capitalism and freedom by milton friedman.
"step 2 is back the paper currency with gold" Yes, but how do you solve the problem of not being able to control the price of gold. The CB tried to hold it at $35/oz while it was trading on the open market at $45! If you continue to redeem at 35$ isn't that going to cause huge deflation, at least until the gold runs out!? Incidentally, Keynes foresaw, as with so many other things, the problem with the gold standard.