Friday, November 16, 2012

Foreign Exchange with Gold

In 1933 the US dropped Gold standard also with many other during the '30s. Switzerland was one of the last countries to drop the gold standard  in 1999.
As much as I would love the US to go back on the gold standard, no other country would recognize our currency, because no other country recognizes gold. 

"But wait, our dollar is the world reserve currency and we are boss, so therefore what we say goes because we will see how long other countries can go without corn if they do not recognize our gold currency. Also, Under a gold standard, the dollar would be valued at a certain number of grams of gold, and the government would be ready to buy or sell gold to anyone based on that value." -Ron Paul 

But other countries were very unsuccessful when trying to go back to the gold standard. 

"There was no reason for the gold standard because we could just back the dollar by the GDP like Japan do. The Gold Standard would destroy the government's ability to exert control over the economy."  -Ron Paul; Blogger

 

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