Will the gold standard save the world? Part 4

Governments can manipulate the price of gold by buying or selling it on the open market.

The first Black Friday in the history of Wall Street occurred in 1869, when financiers-fraudsters Jay Gould and Jim Fisk tried to monopolize gold - that is, to buy out so much that they could then dictate prices. The government sold part of the gold reserve for $4 million and collapsed gold prices, with many stockbrokers going bankrupt. The investigation went nowhere, and Gould and Fisk got out with little loss.
The desire to put a barrier to the growing money supply drives people who advocate a gold standard. But an alternative to the gold standard could be a commodity, such as oil or silver, as the basis for the currency. The next challenge: getting other countries to agree to a new monetary basis.
Another solution could be to run a kind of dual-currency system that is already known - dollars and gold. People could choose for themselves which form for money they prefer. This has been tried to some extent in the historical past: during the North American Civil War. The price of gold rose when the Confederates won, and fell when the Union won - because the Union supported the paper dollar. Even the appeal of gold as a safe haven during a war and collapse, could be a mistake.
Nevertheless, the growing interest in the gold standard stems from a fear that governments will go too far in borrowing and printing money. "The question is whether we should have some kind of standard," says Lance Roberts, chief economist at Advisors StreetTalk and replies: "Yes."
Still, is the gold standard the perfect solution? " A monetary system in which human beings work and manage them, which means it is necessarily not perfect. It's just the least imperfect."

According to the foreign press for ForTrader.ru