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> This imbalance I'm pretty sure led to all the runs on the banks in the banking collapse, as people finally realized they could nearly double their money by converting it to gold.


> under the gold standard America had no major financial panics other than in 1873, 1884, 1890, 1893, 1907, 1930, 1931, 1932, and 1933.


More to the point:

> Countries that were not on the gold standard in 1929--or that quickly abandoned the gold standard--by and large escaped the Great Depression

> Countries that abandoned the gold standard in 1930 and 1931 suffered from the Great Depression, but escaped its worst ravages.

> Countries that held to the gold standard through 1933 (like the United States) or 1936 (like France) suffered the worst from the Great Depression


Advocating a return to the gold standard is historically and economically illiterate.

That's not what I said. I suggested that trying to maintain a fixed gold standard while inflating the money is going to cause a collapse.

I should add that many countries have tried to do something similar - pegging their currency to another, and then inflating their own currency. It always leads to a collapse.


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