The abandonment of the gold standard made it possible for the welfare statists to use the banking system as a means to an unlimited expansion of credit....
The law of supply and demand is not to be conned. As the supply of money ... increases relative to the supply of tangible assets in the economy, prices must eventually rise.
You are excused if you didn't guess Alan Greenspan. I cribbed that from this essay by the indispensable Sheldon Richman.
It seems that Alan Greespan was fully aware of what he was doing during his tenure as Fed Chairman. He predicted the credit expansion and then ensured that it would happen. Thanks, Al.
A commodity standard is the only monetary system that can't be bent to the will of politicians. And of course, they will oppose it at every turn, so the only way we'll get it is after the dollar is completely destroyed. And that may not be as long as we might hope. See here and here
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