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Did anybody listen to "The Long View" on R4 this morning? Unfortunately I missed it

http://www.bbc.co.uk/programmes/b012l1y4

Jonathan Freedland is joined by Norman Lamont and historian Patricia Clavin to discuss how Britain's departure from the Gold standard in 1931 sheds light on the predicament of Greece and the Euro today. It's a shared story of economic collapse, austerity measures, mass protest and the international money markets. All in the context of a currency network that arguably hindered instead of helped its crisis hit members. Britain left the Gold standard in 1931, but would Greece benefit from leaving the Euro today?

It looks like it could have been interesting.

Edited by Lepista
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I heard the first 15 mins as I was late to work. It was interesting.

What I didn't know is that the uk was on the gold standard from 1925.

I found it interesting that being on the gold standard did not prevent the boom and bust, and to am extent caused the boom. So all those blaming the fiat system and saying we should go back to it are not quite right. It seems that mankind is able to **** things up no matter what financial system is used.

Will try it on iplayer later for the rest. Interesting parallels to greece and the euro issue.

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I heard the first 15 mins as I was late to work. It was interesting.

What I didn't know is that the uk was on the gold standard from 1925.

I found it interesting that being on the gold standard did not prevent the boom and bust, and to am extent caused the boom. So all those blaming the fiat system and saying we should go back to it are not quite right. It seems that mankind is able to **** things up no matter what financial system is used.

Will try it on iplayer later for the rest. Interesting parallels to greece and the euro issue.

Odd as it may sound it's still perfectly possible to 'exand credit' (create money) on a gold standard. The issue is usually with FRB, rather than commodity money.

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I heard the first 15 mins as I was late to work. It was interesting.

What I didn't know is that the uk was on the gold standard from 1925.

I found it interesting that being on the gold standard did not prevent the boom and bust, and to am extent caused the boom. So all those blaming the fiat system and saying we should go back to it are not quite right. It seems that mankind is able to **** things up no matter what financial system is used.

The thing is about the gold standard is that it has a poker element of it. You can essentially tell the person who you are losing faith in to show their hand. You can do this like France did which caused the Nixon Shock and the delinking of gold and paper. I.e. if you lose faith you can claim the shiny stuff directly from those who are telling you its all good. Not something you can do today.

If you lose faith in your paper what else can you do with it?

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I heard the first 15 mins as I was late to work. It was interesting.

What I didn't know is that the uk was on the gold standard from 1925.

I found it interesting that being on the gold standard did not prevent the boom and bust, and to am extent caused the boom. So all those blaming the fiat system and saying we should go back to it are not quite right. It seems that mankind is able to **** things up no matter what financial system is used.

Yes, indeed. Well put.

But consider that the gold-standard may have been the means by which the State co-opted a freely traded store of value and subjected it to arbitrary control. Perhaps in an effort to create trust in its management of the currency and banking system, and to maintain its dominance over a trading bloc (think 'Sterling Area' and 'Petrodollar Standard').

Gold and the gold-exchange standard are two very different beasts.

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The words "I promise to pay the bearer on demand the sum of five [ten/twenty/fifty] pounds" date from long ago when our notes represented deposits of gold. At that time, a member of the public could exchange one of our banknotes for gold to the same value. For example, a £5 note could be exchanged for five gold coins, called sovereigns. But the value of the pound has not been linked to gold for many years, so the meaning of the promise to pay has changed. Exchange into gold is no longer possible and Bank of England notes can only be exchanged for other Bank of England notes of the same face value. Public trust in the pound is now maintained by the operation of monetary policy, the objective of which is price stability.

Oh man do I wish I could do this..... my stash would look a lot like this

treasure-chest.jpg

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I heard the first 15 mins as I was late to work. It was interesting.

What I didn't know is that the uk was on the gold standard from 1925.

I found it interesting that being on the gold standard did not prevent the boom and bust, and to am extent caused the boom. So all those blaming the fiat system and saying we should go back to it are not quite right. It seems that mankind is able to **** things up no matter what financial system is used.

Will try it on iplayer later for the rest. Interesting parallels to greece and the euro issue.

The great left wing economist Galbraith, in his even greater book 'The Great Crash of 1929' explicitly lays the blame for the great depression, if it can be put down to a single fiscal policy error, at the door of the British (then still a superpower) adopting the gold standard in 1925, and the particular way they did it [can't remember the detail], and further lays the blame at the then chancellor of the exchequer who by his own admission didn't really understand economics (ring any bells?) - in this case it was one Winston Churchill. Remarkable.

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  • 441 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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