Gold Standard Questions & Inflation, use history to explain.

[buffalokid777]

I am watching the Town Hall meeting from New hampshire, the question about backing currency was just asked.

While Dr. Paul's answer was adequate it can be better by citing the inflation of Nazi Germany. Many of average intelligence are familiar with the story of rampant inflation in Nazi Germany where people began burning german marks for heat, because they could generate more fuel for heat from burning the paper money than buying firewood with them.

This is an example Dr. Paul should cite when trying to explain the inflation that occurs from printing money without backing of some kind and the results of what can happen from printing money rather than restraining spending.

Much more digestable in laymen's terms to a greater amount of people.

 

[acptulsa]

Condense it to a sound bite

Suggestion one: If you had an extra twenty dollars twenty years ago, and you put it in the cookie jar because you thought you might someday need a tank of gas or a week's groceries for the family, and got it out today, you'd find it would no longer buy either one. If you don't have the wherewithal to invest in stock, saving has become a fool's game.

Suggestion two: In 1795 a dollar would buy at least ten loaves of bread. In 1935, a dollar would still buy at least ten loaves of bread. Today it's hard to get one loaf of bread for a dollar. Today's dollar isn't worth a dime.