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<p>[QUOTE=&quot;Clawcoins, post: 3270990, member: 77814&quot;]Of course going back in history we lack to include one SIGNIFICANT impact item in relation to a hedge against inflation.</p><p><br /></p><p>Gold was tied to the Dollar.</p><p><br /></p><p>This adherence of Gold/Dollar actually exasperated the Depression in the 1930s.</p><p>In the late 1920s as the Fed raised interest rates and European countries owed massive Debt to the US, this pushed a slowing of exports, thus slowing down the US economy (massively watered down here).</p><p><br /></p><p>With the 1929 stock market crash, and subsequent bank failures, people started hoarding Gold.&nbsp; Normally a country would stimulate the economy by printing more money, increasing it&#039;s supply.&nbsp; But if you do that, you also have a double whammy as you also have to increase your gold supplies, technically. So you have to spend twice as much.</p><p><br /></p><p>So then the US broke from the gold standard, req&#039;d ppl to cash in their gold, etc etc etc.&nbsp; &nbsp; </p><p><br /></p><p>I was going to make some kind of point I was driving too, but I forgot now.&nbsp; lol</p><p><br /></p><p>Anywho ... if you think about it .. in history Gold was a FIXED amount.&nbsp; So how exactly was it a hedge against inflation ??&nbsp; It was for countries that did not tie currency to gold ... they&#039;d just cash it in for US Dollars !! which caused the US to stop that tactic back in the 1970s ...[/QUOTE]</p><p><br /></p>

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