What we did in 1920 is also cut spending and lower taxes while the fed wasnt quite used to the new abilities it found out in the federal reserve act. I dont think there was any cherry picking involved in Rothbard's analysis because you have to start somewhere when analysing the growth in the money supply.
Originally Posted by Mr. Tempus
Not all Austrians use the price of gold as a singular way of analysing the rate of inflation, but it is just one way. The problem with the reversing of the contraction notion is that it necessitates a reversal in the first place and that reversal didnt just lead to new malinvestments. Inflation doesnt affect all prices equally but it pushes up the prices where it has entered first which makes the CPI index pretty misleading IMO anyway.
While it is correct that governments can inflate at will even under a pseudo gold standard, but that is because of the nationalization of currency and currency production. What most Austrians advocate is not really demanding that there be a gold standard and thats the final word, but what we advocate is a competing currency based on real assets. Practically anything could serve as a currency icluding filled bottles of beer, cigarrettes, etc. The point in question is who should be the ultimate decider of what the currency should be? Governments or people engaging in market cooperation. If people are free to accept the currency they want to, then local currencies could in effect provide a check against government attempts to foster a highly devalued currency upon the populace.
Its not about left or right, but the American way. Wrecking the two party dominance one crash at a time.Its hard to feel sorry about a sob story when theres gnashing teeth waiting to bite my head off.