Message:

<p>[QUOTE=&quot;johnmilton, post: 8201828, member: 101855&quot;]There is nothing inherently evil or unstable about paper money or even money that exists only on computers in the form of data entries. The trouble comes when government authorizes too much paper money relative to the size and growth of the macro economy.</p><p><br /></p><p>Given the huge costs of waging the Civil War, both the Union and the Confederacy issued a great deal of paper money to pay for their war efforts. The Confederacy economy collapsed and was no longer able to produce the goods and services that the citizens needed. That combined with massive issues of paper money in 1863, ’64 and ’65 crushed their monetary system.</p><p><br /></p><p>The Union Government had to issue paper money to pay for the war, which exceeded their productive capacity. It took a while, but the Grant administration was able to restore convertibility between gold and paper in the mid 1870s.</p><p><br /></p><p>There is nothing magic about the gold standard. All it does is limit the amount of money that can be in circulation. That can be a good or a bad thing. Too little money in the economy can choke off growth and result in economic hardship.[/QUOTE]</p><p><br /></p>

Your name or email address:

Do you already have an account?

• No, create an account now.
• Yes, my password is:
• Forgot your password?

Stay logged in