Sustainable?

[obi-1]

@beat90tsi

I don’t agree. The economy grows when money changes hands faster. The money supply does not have to grow. This is clear when you see how we are paid hourly or on salary, either way, it’s a measure of money over time.

The gold ensures that the money supply is not diluted. This becomes a problem when you or I make $XXXX per year or hour. When our servant government decides to print more money, as it enters circulation, it dilutes the value of our money, but we don’t get a raise, thus our same dollars are now worth less.

The Gold standard serves to ensure that the value of currency cannot be diluted.

Intuitively, this still doesn’t feel right to me. You are right that the dollar will become more powerful. On the flip side, if we keep the amount of money constant, the value of everything we own will decrease proportionally.

For example, with a constant money supply: If we double the number of houses in the country, then each house necessarily has to be worth half of when it was purchased.