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overtheedge
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The Revisionist Theory and History of Depressions

- Antal E. Fekete - Gold University

"The key is in the hand of the U.S. government. It is the same key that was used to lockthe U.S. Mint to silver in 1873, and to gold sixty years later, in 1933. By using it now to open13the U.S. Mint to both silver and gold, the U.S. government can effectively cordon off theBlack Hole of zero interest to prevent further damage."

Try as I might, I can see no historical evidence that bi-bimetallism with a fixed exchange value to have ever worked.
There is little doubt that letting silver price float might work with a fixed gold price. Still the operative word is "might" work. Perhaps both should float.
I opine that silver makes a great token coin.
And I argue there was no "Crime of '73"; only a bunch of silver miners (and their respective legislators) whining about the loss of the government price support.
Witness the serious decline in price after silver support was eliminated at the mint.

I contend that the best approach to returning to metallism is by using weight rather than an assigned value. Grams might be the best metric to use for the sake of international commerce. Stick to gold for the metal standard and use silver only as token coins.
With the exchange rate floating, the mint could once again stamp out gold and silver coinage with minimal seigniorage.

Gold and silver coinage are commodities.
Assigning an official price to them is price control.
Price controls spawn wage controls.
When has that ever resulted in desirable outcomes?

Commented 3150 days ago

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Beginning of the headline :An accounting principle, the Law of Liabilities, asserts that a firm ought to carry itsliabilities in the balance sheet at its value upon maturity, or at liquidation value,whichever is higher. This Law is ignored by present accounting standards. The result is arise in the liquidation value of debt, erosion of depreciation quotas, and wholesaledestruction of capital under a falling interest-rate structure caused by a faulty monetarypolicy, hailed as the savior, but which should be condemned as the destroyer. Recognizing the Law of Liabilities may help us to understand deflations and depressionsbetter... Read More

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