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Category: Currency, Digital Media

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

10 Responses to “History of Exchange-Rates Regimes”

  1. philipat says:

    Nixon does have a lot to answer history for doesn’t he? Thank goodness that I didn’t believe for one minute all the “Barbaric relic” BS emanating mostly from TPTB, the crony capitalists and others in whose own best interests is the fiat status quo.

  2. godot10 says:

    What choice did Nixon have? The Vietnam War and the Great Society and the baby boom had made the United States a massive current account deficit nation, and the French started a run on US gold holdings.

    The choice as always is inflate or die (by deflation).

    Nixon gave the United States 50 years (2.5 generations) to fix its economic problems. Americans (of both parties, and mainly the boomers) have chosen to binge consume and print indiscriminately since then. Is it really Nixon’s fault that Americans didn’t fix it’s problems in the time Nixon “bought”?

    The right thing to do was to cut the tie to gold for awhile and then have the discipline to fix your problems, and then re-tie the currency to gold. Boomers have never had any discipline. A narcissistic and totalitarian generation creating a tsunami obliterating everything in its wake.

  3. Manonash says:

    Some have been saying lately that the recent dollar weakness is due to Iran having been locked out of the SWIFT system, and that they therefore have been selling oil directly in rupees, etc., thereby bypassing the dollar. I haven’t seen this opinion expressed widely. Anybody know of a rigorous analysis of this?

  4. philipat says:

    “Waiting for Godot”

    In the practical sense the Gold Standard would force discipline on Politicians. You can, with a degree of justification, blame the Boomers but it would be the Political classes representing the Boomers that have allowed the profligate spending to perpetuate. Which is why the Political classes will fight tooth and nail to prevent a return to the Gold standard.

    “It’s about time”


    BR: This eviscerates the silly argument for the Gold Standard

  5. [...] – Exchange rate regimes: the infographic. [...]

  6. Greg0658 says:

    godot10 like the explaination to the point of
    “boomers have chosen to binge consume and print indiscriminately”
    I’m a last 1/3 boomer and I chose to consume into/outof a balanced checkbook .. I sorta think a thank you is in order – for consuming so another could have a job* .. its not my fault the OpSys has left retirement funds in disorder so the rotation can continue ..
    whatever ~ its a jungle out there and I’m not down & out (yet)

    * goes to this central planners point tho – inflation of jobs produces more people to fill them – whatAyaDo

    oh and nice graphic .. there – a high note

  7. sellstop says:

    A good presentation of the history of the gold standard and exchange rate regimes.
    As far as the “political classes” being responsible for inflation/monetary debasement I think one has to remember that in democracys it is ultimately the masses that get what they want. Politicians are chosen by the masses and from the masses. And as we can see every time that “austerity” is tried it is always despised by the common people. This is a large example of the tragedy of the commons. People rarely and inconsistently vote, or act, for the long term common good.
    And capitalism is the ultimate expression of democracy. The people always choose a form of or a trend to socialism. It is the bastardization/mixing of capitalism and socialism that is the source of the debasement of the common currency. The gaming of the system if you will.
    It is only after a severe hardship that some enlightenment takes place on a large scale. If the misinformation specialists/gamers will let the enlightenment happen…..

  8. DrSandman says:

    I’m not a goldbug, nor do I think that a gold standard is a good idea. (I think that severe inflation is the way to solve the Social Security problem, for example.)

    But I believe that Krugman et al. have it exactly bass-akwards. They are concerned about the fluctuations in the price of gold priced in dollars. Why aren’t they concerned about the fluctuations in the price of everything else priced in the barbaric relic?

    It’s a goldbug site (full disclosure), but it’s interesting to see how the other side of this argument views the idea of dollars:

  9. algernon says:

    What is optimal is free market provision of money & banking. We’ve never had that. The gyrations in gold price are the result of that. All the instances Krugman alludes to involved govt intervention that encouraged credit bubbles.

    Some sort of gold standard might evolve from a true free market in money & banking. Free people would prefer to have money backed by something rather than nothing, if they were free. We are not. Fiat money only exist by legal suppression of alternatives.