Ask Dr. Ruwart

Question:

"I am against the gold standard because it gets the government in the business of hoarding gold. Gold is a useful natural resource for such things as electrical conductors. Why would we need to back money by gold? Paper money is just a medium for exchange. Money represents what the people accept it to be worth. "

My short answer:

"People prefer gold because it is not only a medium for exchange, but has intrinsic value. Overnight, people can lose faith in paper money and it can become worthless. Gold can fluctuate in value, but historically these variations are small compared to the volatility of paper. Governments can easily manipulate the paper money supply by simple decree; gold cannot so easily be inflated. "

Follow-up question:

"If the government prints money at the rate of economic growth and removes money at the rate of economic decline, wouldn't the value of money be more stable then the price of gold?"

My short answer:

"Governments claim to do just as you've suggested, but to the best of my knowledge, they've inflated the currency relative to the economy without exception. Because of the mechanism by which this inflation is accomplished, buying power is shifted from the poor to the rich. Government aggression always hurts the disadvantaged the most.

For the details of how this transfer of wealth occurs, see Chapter 9, 'Banking on Aggression,' in my book, 'Healing Our World.'"

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Dr. Ruwart's book "Healing Our World" features persuasive arguments for liberty, backed with *over 500 references* showing how liberty works. You can browse the entire book online at: http://www.ruwart.com/Healing/

You can order it at a special reduced price of only $12.95 (plus shipping) from the Advocates. Check out our online catalog at: http://www.reliablehost.com/self-gov/opp.html

Dr. Ruwart's newest book is "Short Answers to the Tough Questions," also available from the Advocates for $12.00 (plus shipping).