Re: Moody's downgrades Ireland debt to junk stats on conce...

[Guest guest]

I think the only thing that will save all these economies is to return to a kind of gold standard, something to give the currency some kind of basis to act as a check against government largess. Governments are inherently inflationary and without some kind of check against them, they will inflate the currency so they can spend more.

Even with gold, a level of honesty has to be maintained. Even Rome eventually debased its currency near the end. Spain, shortly after the reconquest against the Moors debased its currency by making the coins smaller, so much smaller in fact that they became too small to use and were withdrawn from circulation.

I described my idea in another post so I won't rehash that here. All I'll say is some kind of check on the government must exist for a currency to stay sound. Otherwise government WILL inflate it to uselessness.

In a message dated 7/12/2011 6:26:50 P.M. Eastern Daylight Time, no_reply writes:

Moody's downgrades Ireland debt to junk stats on concerns further support may be needed