With the European sovereign debt crisis threatening to dissolve the Eurozone and the US with record budget and trade deficits the world is facing a monetary crisis.
Central to the sovereign debt, housing and financial derivatives bubbles has been the provision of cheap and abundant credit. Money that has been simply manufactured from the keyboards or printing presses of Central bankers. As long as the financial system allows the effective counterfeiting of paper currency to meet ever increasing central spending – inflation and instability will ensue.
The only policy option of the politicians and bankers has been to print more money. This currency devaluation is a last desperate attempt to engender recovery. It is time to consider again alternatives to this unstable fiat paper regime.
With the thorough discrediting of much of the worlds banking system throughout the recent crisis there is an opportunity to re-examine the monetary pillars of western banking. This new paper from Hizb ut-Tahrir Britain examines the question of can and should the world return to the gold standard.
The debate is started by setting out the 10 main arguments against the gold standard. We examine these arguments and present counter arguments to explore whether they are still valid, and whether they are insurmountable in the quest for a more stable currency in an unstable world.