WHAT IS THE PROBLEM WITH THE GOLD STANDARD? ANGER
Recently, the issue of "gold standard" has returned to be on the table, with the recognition certain international monetary authorities would have to go back "somehow" to him. I then claimed the proposal of Mises and some told me it was impracticable. Perhaps the confusion is that Mises's proposal has nothing to do with Bretton Woods. First of all, you have to read it. Here it is:
http://mises.org/books/Theory_Money_Credit/Part4_Ch23.aspx
In short, Mises suggested that gold again be freely used as currency, not governments be based on it to ensure their paper. That is, had to establish a free market in gold which the Americans could return to exchange dollars for gold and then fully privatize the banking system so that they revert back to being home gold deposit by issuing depository receipts corresponding to a 100% reserve (which some see as a transition policy.) Obviously, as this is done now, free markets would be responsible for providing all kinds of money substitutes: debit cards with international transfer, etc.
Moreover, this is not a matter of "decide." The market has already decided for the gold. Spontaneous orders do not expect to deliberate orders. At the end of the de la Rua, Argentina and demanding consumers more dollars to pesos. The devaluation of the peso had been decided by the market. Similarly, the dollar is already depreciating against gold, while Bernanke and Obama remain in charge of leading the U.S. to a monetary disaster never seen before. The problem is that usual for now is to buy gold as a future option to sell it later for another currency, when in reality, the privatization of the banking system and especially the elimination of the central bank would use gold as money and its substitutes in common national and international exchange, and prevent any other government embarks on follies such as the Fed is doing now.
Impracticable
What is not gold, but central banks and permanent legalized fraud. Obviously
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