the economy when us currency was tied closer to gold?

sthomper — Sat, 28 Nov 2009 11:05:16 GMT

The deflation-versus-inflation debate emerges as the flavor-of-the-day....of continuing deflation before any real inflation sets in. That makes gold's price performance a tough call, he tells The Gold Report, because we have no history to help us understand how gold behaves in a real deflationary environment.

http://www.theaureport.com/pub/na/3008

the above excerpt was from the above link....i dont know if it is true ( a legitimate articel discussing real events) or not. or what the f**k a deflation versus inflation debate is.

if dollars are inflating its dollar inflation. if credit (its differences from the actual dollar) is deflating then credit is deflating. any debate here seems dishonest.

it also seems odd that someone speaking of economic issues talks about deflation (monetary or price, im not sure) when..

"figures show that although the middle part of 2008 does stand out in the long view, it does so not by virtue of credit's frightening contraction, but only by virtue of its hitting a six-month plateau from April through September.

At no time during that interval, however, did the amount of commercial-bank credit outstanding fall below the amount outstanding at the beginning of the year. In short, credit was actually ample, indeed, at an all-time high; it simply stopped growing as usual for six months, stuck at about $9.4 trillion, while one Wall Street wizard after another told NPR that "no money is moving, the credit market is completely shut down..."

if true...maybe things are different now?

however, its the portion of the comment that says "we have no history to help us understand how gold behaves in a real deflationary environment....." that is of some interest

because this link http://www.harrybrowne.org/GLO/FreeTrade.htm , it say

"During the 23 years from 1947 to 1970, the median income of American families increased by an average of 2.8% per year. But from 1970 to 1998, the median income grew by only 0.4% per year.

The difference is considerable. If the previous growth rate had continued, the median income in 1995 would have been 90% greater than it was."

im not exactly sure of the level of dollar-gold pegging from 1947 to 1970 or if that information is true, but if the dollar growth was more closely linked to gold.....was there a 'deflationary environment' during those decades? by deflationary, does that mean prices to wages?

Economics Questions

the economy when us currency was tied closer to gold?