Let’s go back to the gold standard. If the very idea seems at odds with what is currently happening in our country – with Congress preparing to pass a massive economic stimulus bill that will push the fiscal deficit to triple the size of last year’s record budget gap – it’s because a gold standard stands in the way of runaway government spending. Under a gold standard, if people think the paper money printed by government is losing value, they have the right to switch to gold. Fiat money – i.e., currency with no intrinsic worth that government has decreed … Continue reading Capitalism Needs a Sound-Money Foundation