Logos01 comments on Harry Potter and the Methods of Rationality discussion thread, part 13, chapter 81 - Less Wrong

6 Post author: bogdanb 27 March 2012 06:07PM

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Comment author: Alsadius 29 March 2012 01:02:26AM 9 points [-]

It varied. Some countries used a bimetallic standard with fixed exchange rates, some used one as the standard and let the other float. There's even been trimetallic(gold/silver/copper) at times.

It's actually been a political issue which of those to use more recently than you'd expect(and no, I don't mean Ron Paul) - the 1896 US Presidential election was fought in significant part on a Democrat plan to move to a bimetallic standard away from straight gold, which was in the day an inflationary move designed to help indebted farmers. If you've ever heard of the "Cross of Gold" speech by William Jennings Bryan, that was it. A couple decades earlier, though, the US was bimetallic, and routinely had one metal or the other sucked completely out of circulation by prices changing faster than the official exchange ratio, as is to be expected of a system with fixed exchange rates and no capital controls.

The history of how to abuse commodity money systems(both from the public's perspective and from the minter's) is long and actually rather fascinating. If you ever hear someone talking about how gold is stable and can't be abused, you can feel free to laugh at them.

Comment author: Logos01 29 March 2012 04:00:31AM 0 points [-]

When did we stop honoring silver notes, again? Wasn't it in the 70's?

Comment author: Alsadius 29 March 2012 06:07:08AM 1 point [-]

I can't speak to silver, but I know that gold had two important dates - there was 1933, when FDR banned private gold ownership, and then there was IIRC 1971, when Bretton Woods collapsed and Nixon formally ended gold convertibility. For the decades in between, gold notes were formally convertible, but not to ordinary citizens, only to banks(generally, foreign central banks).

Comment author: Logos01 29 March 2012 06:30:15AM 0 points [-]

The ban on gold wasn't indefinite, IIRC. It doesn't much matter though.

Comment author: Alsadius 29 March 2012 05:14:18PM 1 point [-]

It wasn't repealed until the Ford administration.

Comment author: see 29 March 2012 04:28:20AM 1 point [-]

June 24, 1968, if you trust Wikipedia.