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Originally posted by Misoir
reply to post by saabacura
Whoever said that just because you are on a gold standard it means the business cycle disappers?
Here is some reading on the Austrian argument about the Business Cycle:
Austrian Business Cycle Theory: A Brief Explanation
Business Cycle
Originally posted by saabacuraSo basically with the gold standard, I envision the rich hoarding money. Money doesn't flow like above. Money is stagnant. The rich will hoard all the gold/currency and never use it.
Originally posted by Misoir
reply to post by saabacura
You can answer that question for yourself if you read the second link in its entirety.
The thrust of the Austrian theory of the business cycle is that credit inflation distorts this process, by making it appear that more means exist for current production than are actually sustainable (at least in some renditions; see Hülsmann [1998] for a "non-standard" exposition of ABCT). Since this is in fact an illusion (printing claims to property ["inflation"] is not the same thing as actually having property; see Hoppe et al. [1998]), the endeavors of entrepreneurs to create a structure of production not reflecting actual consumer time preferences (as manifested in available savings for the purchase of producer goods) must end in failure.
Originally posted by saabacura
I guess the negative consequences of changing from fiat to gold...?
all of our current investment strategies are based on the fact of inflation. So you change to gold standard???
What happens to our world????????????????????????????????????????????????
Originally posted by BeyondPerception
Well, let's just stick to paper.
No negative consequences there.
Originally posted by OccultScience
reply to post by mileysubet
Something called Price Discovery. The amount of gold is irrelevant. Whats relevant is the price. And there is also silver to be considered. Price Gold at $25000/oz and lock Silver to Gold at 15:1. Done.
Originally posted by Misoir
reply to post by saabacura
Actually no he has not, what Paul has said is that the Federal Reserve through the use of interest rate maneuvering is able to cause the boom and bust cycle, as does all Austrian School Economists, because it fosters an environment of debt and mal-investment which would otherwise not be made. Through these mal-investments the results are obvious; you create bubbles which must then burst. By extending periods of low interest rates, rather than allow the market set the rates, you create the systemic threats to the economic structure.
The thrust of the Austrian theory of the business cycle is that credit inflation distorts this process, by making it appear that more means exist for current production than are actually sustainable (at least in some renditions; see Hülsmann [1998] for a "non-standard" exposition of ABCT). Since this is in fact an illusion (printing claims to property ["inflation"] is not the same thing as actually having property; see Hoppe et al. [1998]), the endeavors of entrepreneurs to create a structure of production not reflecting actual consumer time preferences (as manifested in available savings for the purchase of producer goods) must end in failure.
I have provided you so far with 4 links, 1 which will help you understand a transfer to the gold standard and 2 which explain the Austrian Business Cycle. Since you have obviously failed to read even the ones on the business cycle and instead intentionally perpetuate this misinformation based upon a lack of clarity and understanding of the issues at hand, which I have attempted to help you resolve, no longer will I waste my time here and would encourage others not to as well.
mises.org...
Originally posted by TheWalkingFox
reply to post by Xcathdra
I think you might want to put a little research into the historical boom-bust cycle of the United States (or even world) economy before you make that sort of claim. We had plenty of pretty big depressions while we were on the gold standard. It's not a panacaea.