Do we really need to fight inflation?

This whole thread is about inflation.
I have a bunch of posts on here, all different aspects of inflation.
Are you saying the whole topic of inflation is B.S.
I don't believe you would think that.
So please write more clearly.
And that will somewhat help your trading, whatever type it is.

 

---------------Pre-Covid Now
Gold Price $1500 $2400
National Debt 23T 34T
The debt has actually decreased since Covid if measured in gold. You see the awesome power of inflation on debt.

 

It was in relation to Singapore and gays and corporal punishment methods being old school, but nevermind, lets move on.

 

Very good. Thank you Mickey.

 

Modern countries will never return to a gold standard for their currencies. It's an impossibility because the price of gold can no longer be controlled other than by the market. The gold standard regime established at Breton Woods failed after a few years for exactly the reason Keynes said it would fail. And even if it were still possible it would be a bad idea. A currency based on a fixed price for gold is, at it's core, no different than fiat currency but far more cumbersome.

 

Jerome Powell, is that you?

 

It's kind of strange so many countries hoard gold or believe in it as a hedge against inflation.
I think it's only for sentimental reasons they do it.
It makes more sense to invest your currency in people, business, infrastructure, industrial commodities and real estate as they serve a useful purpose.
Gold is like a cult object, a belief in it because of romantic stories from yesteryear.

 

Under gold standard, the gold content of a currency is determined by the government and can be adjusted at any time. The currency can still be devalued by the government. A gold-based currency is better than fiat, which is based on nothing. If Fed wants a massive QE under gold standard, it has to devalue the dollar first, which makes QE look bad. That's why there is no QE under gold standard. It shows the financial credibility of a country.

 

Rarely do I agree with piezoe on economics by IMO he is right. It is absurd to think the USA can return to a gold backed dollar, as in you (or anyone else in the world) can exchange your dollar(s) for gold.

Because like what happened in the early 1970's a (gold)run can take place if chit hits the fan.

What then?

 

Gold standard is the best in theory. As long as USD can maintain its reserve status, it doesn't have to go to gold standard if it is too expensive.