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<p>[QUOTE=&quot;johnmilton, post: 8240882, member: 101855&quot;]There is not enough gold in the world to support a gold standard unless the fixed rate is something stupid like $1 million an ounce or more.&nbsp; </p><p><br /></p><p>All a gold standard does to put a limit on the amount of money that can be in circulation if it is rigidly enforced. That can be a good or bad thing. Too much gold would result in inflation. Look at prices during the California gold rush. Too little gold brings the economy to a halt or at least to a recession because there is not enough money available to run it. The U.S. had that problem just after the Revolutionary War in the 1780s. </p><p><br /></p><p>In short it&#039;s what some people think as a &quot;natural way&quot; to determine the money supply, but the truth is it doesn&#039;t work. The real issue is the one that central banks grapple with constantly. How much money is needed to keep the economy going well?[/QUOTE]</p><p><br /></p>

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