Daily Archives: December 28, 2010

“Free Market” Gold Standard? Gary North’s Folly

I don’t know why Gary North bothers me so much.  It could be the arrogance, the unreasoning self-satisfaction of a kind that permits him to overlook self-contradiction and faulty logic in his own opinions while he eagerly exposes them in others’.  Or thinks he does.

Mr. North likes the “free market gold standard”.  He disapproves of the “government gold standard”.

What is a “government gold standard”?  A government has a unit of money, such as the “dollar”.  Under a government gold standard, the government defines its unit of money in gold terms.  So, for example, an ounce of gold would equal twenty dollars by law, which it in fact did for a long time in the United States.

This is a bad idea, says North, because governments lie, cheat and steal.

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