Ron Paul Says: "That's a Red Herring that there's Not Enough Gold in the World" Video

This 20 minute interview is among my favorite. Download it.

I always enjoy learning from Ron Paul!
He explains things like no other :-)

mtmind

In his essay, The Case for a 100 Percent Gold Dollar, Rothbard explains why the quantity of gold is enough to be used for the money supply and how the purchasing power of each unit changes according to the needs of the market so that there is no need to increase its supply.

Excerpt:

The major objection against 100 percent gold is that this would allegedly leave the economy with an inadequate money supply. Some economists advocate a secular increase of the supply of money in accordance with some criterion: population growth, growth of volume of trade, and the like; others wish the money supply to be adjusted to provide a stable and fixed price level. In both cases, of course, the adjusting and manipulating could only be done by government. These economists have not fully absorbed the great monetary lesson of classical economics: that the supply of money essentially does not matter. Money performs its function by being a medium of exchange; any change in its supply, therefore, will simply adjust itself in the purchasing power of the money unit, that is, in the amount of other goods that money will be able to buy. An increase in the supply of money means merely that more units of money are doing the social work of exchange and therefore that the purchasing power of each unit will decline. Because of this adjustment, money, in contrast to all other useful commodities employed in production or consumption, does not confer a social benefit when its supply increases. The only reason that increased gold mining is useful, in fact, is that the large supply of gold will satisfy more of the non--monetary uses of the gold commodity.

There is therefore never any need for a larger supply of money (aside from the non-monetary uses of gold or silver). An increased supply of money can only benefit one set of people at the expense of another set, and, as we have seen, that is precisely what happens when government or the banks inflate the money supply. And that is precisely what my proposed reform is designed to eliminate. There can, incidentally, never be an actual monetary “shortage,” since the very fact that the market has established and continues to use gold or silver as a monetary commodity shows that enough of it exists to be useful as a medium of exchange.

The number of people, the volume of trade, and all other alleged criteria are therefore merely arbitrary and irrelevant with respect to the supply of money.

The Case for a 100 Percent Gold Dollar - by Murray N. Rothbard

Subject line fixed for the grammar police.
Thanks

Time to add Spell Check to Preview Comment.

The point of gold is that you can't print it.

It doesn't matter that more people are born into this world to produce more products.