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.
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