The 'Sound Money' Myth

buy my stuff

[heldenby]

I think very few people think sound money "fixes everything". But the alternative is unsound money that eventually fails and has to be replaced by sound money.

[rbar]

Okay question, does sound money constrain the growth of governments? That’s the only “benefit” that really matters imho. I hypothesize that freedom, liberty, and maximum free market capitalism are a derivative of small governments. Why are you stuck on CPI repeat? I think we get it at this point!

[HelloThere-nzld]

I still don't understand. Won't a limited amount of Gold, limit the size of government. How will they satisfy their infinite appetite for hiring more people, taking on new projects, enforcing their endless regulations, etc.

[cdb]

You are really overcomplicating this George. An easier description is

All the prices = all the money ÷ all the stuff

More money, same stuff. Higher prices. More money, more stuff, flat prices. But in every situation, holding the "stuff"aka GDP constant, increasing money supply devalues money.

Telling people that some human led manipulation of the money supply in a more optimal way is what we need instead of solving the problem simply by removing the human element "i.e. sound money" is pretty counterproductive.

[BlueWaterSTAX]

A Gold standard stops government from printing our dollars into oblivion. It also gives us freedom from their control mechanisms. Thanks George

[randombro]

Hi George, huge fan. I needed to hear this video. I think sound money is much like the Constitution. "Our Constitution was made only for a moral and religious people. It is wholly inadequate to the government of any other". Sound money is a tool, but it needs to be used by a moral people for it to reach its potential.

[objectivesovereignty]

I think money printing is a big part of whats coming ( hyper inflation ) but so is shortages of energy, resources, producers, regulation of the big boys and over regulation of the medium and small businesses.

[victorfontaine]

That isn’t gonna stop them from trying George. That isn’t gonna stop them from trying. Especially when you can just impose policies on millions of people with the stroke of a pen and you don’t have to answer to anyone. The mistakes will eventually add up, they always do…👍🏾

[philfortner]

George the most productive time in US history was the late 1800s were the largest number of Americans were enriched. It's part and parcel of sound money during that time.

[fredjohnston]

OMG - you are overthinking this. We are not trying to engineer humans w/sound money. You suggest we need less Gov spending. If you have sound money, the Gov can't finance itself w/o raising taxes. If you have to RAISE taxes for Gov to spend, the people will push back. That's engineering a system with checks and balances. And the idea that M2 is the ONLY thing that creates inflation is wrong - but increasing the money supply MORE than productivity gains will inflate prices (why you have times when money supply increases but no inflation). Technology is outpacing the increase in money supply.

[Minder]

I recommend it often when you discuss money, so I will recommend it again - Money: Sound and Unsound by Joe Salerno. It's probably the best book on this topic, and clears up a lot of confusion.

[Cyber_Eight]

You should debate Peter Schiff on these points

[t-roy]

Sound money may not stop the gov spending but it'll sure as hell constrain and box them in. Smaller is better.

[joefuentes]

Sounds like you're starting to get FED up 😎

[dboi]

Animal fills it's belly, it is satisfied with life. Man fills his belly, but still wants something more from life. Food and money is not enough to satisfy the soul. Stop spending your life chasing something so limited and temporary. Cause when you are drawing your last few breaths, food and money will be the last things on your mind.

[watchful.]

Sound money will give us freedom and fix many other issues down the road.

[thereignofthezero]

We are living in a world of human beings? Not sure how many of these creatures are truly human.

[JS-wszt]

Very important point. We can have dystopian hell and sound money at the same time. In fact a command economy is far more command the lower the supply of money....I think

[jurgentebrake]

Thx george for all the content with nerdy stuff, wisdom and humor. Happy hollydays.

[JFTL]

I think the most important property of a sound money system is finiteness. That would limit government spending by definition. We need constraints like a thermodynamic system otherwise things get out of control.