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"Long ago the gold standard made sense for America, but not today. Its advocates want to turn the clock back to the 'Roaring 20’s,' but the economic growth of that decade had little to do with the gold standard and it ended in disaster. America has now been off the gold standard for 40 years and its many flaws have been forgotten. There are excellent reasons it was rejected by right wing icons such as Milton Friedman...
Many economists believe adopting a gold standard could decrease the U.S. monetary supply by about half. This would cause massive deflation and could threaten an economic collapse...
There is not enough gold in the world for it to be a medium of exchange...
Using gold and silver is not going to prevent the government from making bad monetary decisions or creating more debt. The government could still spend too much and it would still have to contend with compounding debt and interest...
Gold advocates claim it would give America a fixed monetary base, but gold flows can create huge swings in the broader money supply. Gold would not result in a stable monetary base. There has been a decades long search for price stability, but there are no stable commodities."
"The Case against Gold: Why Ron Paul Is Wrong about the Gold Standard," diplomatdc.wordpress.com, May 29, 2011
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