>in 1932 the government of france owned 32% of all the worlds known extracted goldWhy dif they need so much gold? Why did they still suffer so badly from the great depression?
>>18017740>Why did they still suffer so badly from the great depression?I can't wait to see what the "muh gold standard'" retards have to say about this
Gold reserves were tied up in central bank vaults, not circulating as domestic credit.
>>18017740Because the depression was caused by speculative stocks crashing and had nothing to do with gold. People lost confidence in the market
>>18019153dropping the gold standard was the easiest quickest way out of the great depression though
goldbump
>>18019739>if you unlink money from the way people value it they won't notice all the inflation and will go back to spending more and more of their money
>>18021310you think people didn't notice their money suddenly wasn't worth its weight in gold? You think it would have been better if they kept hoarding their money and maintained a perpetual economic depression like Austria did?
>>18021361oh I see now, so depressions are when people lose confidence in the system and central banks are to prevent people from having the power to shut down the economy
>>18017740Anglo scum used their monetary assets to pressure France into abandoning reparations claims against Germany. France accumulated gold to establish a degree of strategic autonomy. Of course it was expensive to do this and took a long time to make a difference so ended up weakening the real economy of France enough to make it ineffective
>>18021368They're usually caused by money becoming too scarce. This makes debts rise relative to incomes and causes corporate bankruptcies while also preventing the formation of new companies. This leads to unemployment and a decline in real output, leading to further business failures and further unemployment in a vicious circle. The gold standard doesn't necessarily cause overly scarce money but it does "need" to happen with gold backed currencies far more often and more severely than with fiat currencies
>>18021372so then the source of the problem are banks creating money out of thin air
>>18021376No the problem is that they don't
>>18021378But they do, they create money out of thin air and if they do it too much they don't have enough money to cover people removing their money from the system because they no longer have confidence in itmeaning the ultimate cause of the problem are governments embezzling money they print with banks, so the way they get around this is by creating an unanswerable central bank with the only purpose of preventing the economy from collapsing due to lack of confidence cause by government embezzlement
>>18021361Austria suffered a perpetual depression because their economic sectors were nationalized by their former constituent regions like Czechoslovakia which nationalized Skoda and moved it from Vienna to Prague.
>>18021368I have no idea how you interfered that from my post, even more so since I pointed out monetist Austria, which went as far as to employ Mises as its economic advisor, suffered from the great depression till it ceased to exist>>18021413if that's true why did it take ten years for the consequences of that to show themselves?
>>18021388>>meaning the ultimate cause of the problem are governments embezzling money they print with banks, so the way they get around this is by creating an unanswerable central bank with the only purpose of preventing the economy from collapsing due to lack of confidence cause by government embezzlementyou just described the fed, now lets watch as someone responds with some retarded conspiracy
>>18021422the great depression was caused by french and english economic terrorism against the germans, of course everything by that point was integrated into the US global system so people either focus on the US or focus on local issues. Nothing the austrians could do could have saved them from the great depression because the financial power that controlled the world collapsed
>>18021430yes I was purposefully describing the fed
>>18021433were the Japanese into it too since they were the first country to drop the gold standard and shortly afterwards the first country to exit the great depression
>>18021450Almost as if rallying your nation for war increases public confidence
>>18021472What wars were japan, the UK and the scandinavian countries rallying for in 1931?
>>18021486The war they had been planning since what, 1905?
>>18021492Sweden, Norway and Denmark were planning to wage war against...?
>>18021508I don't know they were pretty irrelevant weren't they?
>>18021513irrelevancy is a good way of rallying your nation too?
>>18021522I assume they did some bread and circus (infrastructure) spending?
>>18021526assuming is a poor substitution for knowing
>>18021530What about apathy? What grand strategy could they have possibly had? What miracle brew?
>>18021508The soviets, using the finns
>>18021536Yeah. Seems like we were in a cycle of warfare probably caused by inept governments to distract people from their own ineptitude
Do you need to be a conspiracy theorist to be for the gold standard?
>>18021536the Scandinavian countries were infamously badly prepared for world war 2. >>18021533>What miracle brewabolishing the gold standard
