Call Me Stormy

Finding righteous currents in turbulent times

Archive for the tag “currency”

What Is the Gold Standard?

Before 1974, U.S. dollars were backed by gold. This meant that the federal government could not print more money than it could redeem for gold. While this constrained the federal government, it also provided citizens with a relatively stable purchasing power for goods and services. Today’s paper currency has no intrinsic value. It is not based on the value of gold or anything else.

Under a gold standard, inflation was really limited. With floating value, or fiat, currency, however, some countries have seen inflation reach extremely high levels—sometimes enough to lead to economic collapse. Gold standards have historically provided more stable currencies with lower inflation than fiat currency. Should the United States return to a gold standard?

What’s a Bitcoin?

Bitcoin is attracting the attention as a wildly volatile, all-digital currency. How does it work? How are criminals taking advantage of it? How risky an investment is it? The Wall Street Journal‘s Jason Bellini has “The Short Answer,” explaining the dynamics underlying the bitcoin market.

Say Goodbye to $1 Bills

A new report by a government watchdog argues that the U.S. could save billions of dollars by eliminating the $1 bill and enforcing the widespread use of $1 coins. The Wall Street Journal‘s Jeffrey Sparshott has details.

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