Conservative economic policy is easily recognised when stated as balanced budgets, low taxes and sound money. Today, these are a distant prospect. For all the work the Government have done, this year’s net financing requirement is £144.9 billion, larger than the health budget (£140bn) or education (£98bn). As my weekend brief explains, “The Government have delivered a typical tax cut of £705 for over 25 million people and taken over 3 million people out of [income] tax altogether”, however, please contact […]
Tag Archives: Gold
After much that I have said, written and done, this gives me some satisfaction: The gold standard has returned to mainstream US politics for the first time in 30 years, with a “gold commission” set to become part of official Republican party policy. via Republicans eye return to gold standard – FT.com.
Faced with the prospect of a global collapse in the banking system, the Chancellor took the decision to bail out the banks by dumping Britain’s gold, forcing the price down and allowing the banks to buy back gold at a profit, thus meeting their borrowing obligations. via Revealed: why Gordon Brown sold Britain’s gold at a knock-down price – Telegraph Blogs. My review of Gold Wars is here. I would not be at all surprised if the thrust of the […]
Occasionally, someone will describe me as “a gold bug”. I shouldn’t be surprised. My usual answer when someone asks me why I always have an ounce of silver in my pocket is, “I can’t afford to lose an ounce of gold.” The truth is that the debate over commodity-backed money is just one of the axes along which scholars of money and banking take different views. A good money must have a number of important qualities — durability, divisibility, recognizability, […]
In Gold Wars, Swiss banker Ferdinand Lips sets out the case that gold and freedom are inseparable. Over 254 pages, he shows how governments fight against gold, a vital restraint on their spending and therefore interventions in the lives of free people. It’s a case which ex-Federal Reserve Chairman Alan Greenspan made in his classic essay, Gold and Economic Freedom, available in Capitalism: The Unknown Ideal. He wrote, An almost hysterical antagonism toward the gold standard is one issue which […]
I have just watched a fascinating documentary about the financial crisis by Austrian School thinkers including Peter Schiff, author of the superb book How an Economy Grows and Why It Crashes: Two Tales of the Economy: The End of the Road. It was interesting and easy to follow. It was also pretty accurate apart from some simplifications about the money creation process. Here’s the trailer: The full film is available online for $5. You might also want to look out […]
Via Is A Gold Standard Deflationary? Forbes.com: What causes contraction and decline is not using a gold standard system. In the forty years since floating currencies began in 1971, the average American family has made no progress at all–even with two incomes, instead of one. If you measure income in terms of ounces of gold, we are back to early-1950s levels. Although there were many ups and downs over the last two centuries, including a Civil War and a Great Depression, […]