/biz/ - Business & Finance

>>17408099
This>>17408124


Like it or not, gold does limit economic growth. The economy will be limited to the what the supply of gold is. Our current economy is based on debt spending and using cheap credit to spur growth.

With the current system, you want to might borrow $20,000 to start a business. The bank will likely comply if you decent credit and a solid business plan, so they'll give a loan with low interest because credit is cheap. You're also comfortable with it because $20k in debt doesn't really mean much if things go tits up, and the low interest rate means you can pay it back eventually. If we're on a gold standard the bank might unwilling or unable to offer the loan, or they might do so at higher interest. A higher interest rate would make borrowing less attractive, and saving a better way to protect money.


A gold standard is the difference between whether you prefer to grow your wealth or preserve it.