Monday, July 25, 2011

Video of the Day: Gold and Money

I found this very interesting video online:

The question to ask is: What would the economy look like if we returned to the gold standard? (FYI: We likely won't see that for a very long time into the future.)

The answer is slow deflation. Since gold is limited in supply, as population grows, wages and the price of goods continually drop as the supply of gold (or gold-backed currency) is spread out among more people as a use of exchange.

Anyway, the video is fodder for good conversation.

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