Why the world has an unstable, vulnerable and volatile money system - and what to do about it

Roger Lowenstein explains why the Gold Standard was immorally abandoned by the main party (the US) which engineered it, as well as the consequences, positive and negative, in an easily-readable piece:
http://www.businessweek.com/printer/magazine/the-nixon-shock-08042011.html

As I have stated publicly, verbally as well as in print, I find it extraordinary that no christian minister, priest or evangelist, was willing to denoouce the unilateral breaking of an international treaty.

Nor was anyone prepared to condemn Nixon for a public sin that had been condemned as long ago as by the prophets Moses, David and Isaiah (Leviticus 19:35, Deuteronomy 25.15; Isaiah 1.22, Amos 8.5, Micah 6.11, and so on).

That public sin is the reason why we have the global system of money which is so unstable, vulnerable and volatile.

Naturally, it is difficult to get back to the gold standard or the silver standard. But it would not be difficult to arrive at a stable system of money creation where only that much money can be produced in a country as the GDP of that country (I know this is difficult to assess, but it is far easier to assess than dollar flows). Also, GDP can be judged fairly accurately in retrospect and there could be a method of smoothing out all inaccuracies in measuring GDP by having a 3-year rolling average for the production of new money.
Sphere: Related Content