A sound monetary system is one in which a currency is backed by gold, at least a percentage or fixed weight of gold. This is different from the monetary system currently used in the United States and many other countries. Today, all national currencies are fiat currencies. Fiat currency is currency that has value only because of government regulation or law of which carries no intrinsic value of any kind.

At the time of the Great Depression, numerous countries went away from the gold standard since they had to pump money into their economies to stimulate growth. Having a gold standard would not allow them adequate economic flexibility. It is also true that there can actually be too much economic flexibility...

Read More