tag:blogger.com,1999:blog-7200179567576095727.post1497137702026256922..comments2023-10-30T09:14:55.251+01:00Comments on Exit Economics: Guest Post - The Gold Standard: Generator & Protector of JobsExitEconomicshttp://www.blogger.com/profile/00870626723726087531noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-7200179567576095727.post-75145163949234202372016-07-04T10:27:11.072+02:002016-07-04T10:27:11.072+02:00I am not so sure that being born under a gold stan...I am not so sure that being born under a gold standard led to being poor for the rest of your life. Not in the western countries, for sure. The social lift was surely tougher to get for the countries in Asia.<br /><br />In the late Nineteen century, Buenos Aires was one of the richest city in the world. The European "Belle Epoque, in 1880's, flourished under the first Gold Standard. The Italian "Economic Miracle" occurred in the fifties and sixties. <br /><br />As regards your last point, that is China, I am going to cover this aspect in one of my next posts. It is very interesting indeed. For now, I would only mention that China used all the possible tricks of a fiat money system to keep its currency devalued and its goods cheap and competitive in a global market, with the placet of the Americans. <br />Now China is on the verge of a collapse, the same as Japan was in the late Eighties. ExitEconomicshttps://www.blogger.com/profile/00870626723726087531noreply@blogger.comtag:blogger.com,1999:blog-7200179567576095727.post-4893430622587509562016-07-04T08:17:10.864+02:002016-07-04T08:17:10.864+02:00It is absolutely true that under a gold standard t...It is absolutely true that under a gold standard trade imbalances would be impossible. <br />But under the gold standard who was poor was remaining poor more or less for the eternity<br />In addition, even with a fiat money, the system might work provided that the exchange rates reflect the trade balance, i.e. if a country is only buying, the value of its currency should go rapidly to zero when compared to the value of the currency that is only selling.<br />So the real question should be: why China is accepting, or is being forced to accept, dollars, i.e. pieces of paper, to sell goods without buyng any goods?Vincenzohttps://www.blogger.com/profile/00038775981617496935noreply@blogger.com