Macro Musings with David Beckworth Larry White on Gold, Fiat, and Bitcoin: Determining the Ideal Monetary Standard
17 snips
Aug 14, 2023 AI Snips
Chapters
Transcript
Episode notes
Appalachian Gold Mint Story
- The Beckler family ran a successful private gold mint in Rutherford, North Carolina producing millions in coins.
- In contrast, Templeton Reed's substandard coins failed quickly due to public detection and loss of trust.
Gold Standard Self-Correction
- A gold standard self-corrects through mining incentives when demand or price value for gold changes.
- The purchasing power of gold tends to revert to mining costs, stabilizing price level over time.
Ideal Fiat vs. Actual Performance
- Ideal fiat money allows inflation as low as desired and can smooth price level fluctuations theoretically.
- Actual fiat standards have performed worse than gold standards on inflation and real economic volatility due to fiscal dominance.