The Arizona House of Representatives has convened an Ad Hoc Committee on Gold Bonds. The purpose is to explore if and how the state could sell a gold bond.
This is an exciting development, as the issuance of a gold bond would be a major step towards a working gold standard.
Yours truly is a member of the committee. At the first meeting, I gave a proposal for how a gold bond could work to the benefit of the state and the people.
Here is video of the committee meeting. My presentation begins around 18:18.
No need to watch this video to know that this is about as unsafe and unstable to both parties as you can get.
As John Maynard Keynes wrote:
Chapter 1 page 1 paragraph 1: In his ‘A Tract on Monetary Policy’, first published by Macmillan in 1923:
“If, by a change in the established standard of value [of money], a man received and owned twice as much money as he did before in payment for all rights and for all efforts, and if he also paid out twice as much money for all acquisitions and for all satisfactions, he would be wholly unaffected”
A more accurate statement would allow all prices to adjust to all market forces so that they would end up being that much higher than they would otherwise have been.
The outcome would be the same. People would then be spending on the same new things in the same new ways that they would otherwise have been doing had money not changed in value. If all such prices adjusted, they would be wholly unaffected.
What then of gold bonds?
The whole point is that what is needed is some form of investment which can or will ofst the falling value of money.
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