The Gold Standard, Intrinsic Value, Ron Paul and Chocolate

My friend Ray has made several comments about my recent post about Ron Paul and the Gold Standard.

I was thinking about that today. Backers of the gold standard assert that gold has some kind of intrinsic value. By linking the dollar to something of intrinsic value, it makes our currency more stable, along with a host of other benefits.

One key problem for me is that I do not accept the “intrinsic value” of gold. Yes, gold may have a long history of being considered valuable by people. But its value has fluctuated quite substantially over the centuries. And gold doesn’t have a “use value” consistent with its market price.

So, I now call on all gold standard supporters to change their position. I call for a Chocolate Standard. Unlike gold, chocolate has a real and universally accepted intrinsic value. Chocolate is beloved by nearly all humans – though I hear dogs don’t do too well on it.

Aside from the economic benefit this would bring, it would also promote racial harmony, especially if the currency was indexed to a basket of white chocolate, milk chocolate, and dark chocolate. But you still shouldn’t eat the yellow snow.

6 comments to The Gold Standard, Intrinsic Value, Ron Paul and Chocolate

  • Anonymous

    Hi —

    The gold standard has nothing to do with “intrisic value”.

    It has several virtues:

    It is in the Constitution — no mention of chocolate there.

    Its supply is relatively inelastic. You can’t make more due to political need. Chocolate? Does our money buy less at Easter?

    It is market-based on the supply side as well as the demand side. Both dollar and chocolate markets can be flooded by the decisions of a few players.

    It doesn’t have to be gold — anything that meets these criteria would work. Gold’s historical value suggests there wouldn’t be many surprises & we don’t have to change the constitution, so why not?

  • Ray

    Chocolate spoils. It melts in your pocket. Some people are allergic to chocolate. Not good for circulating money.

    Gold that was mined thousands of years ago is still around.

  • Come on people!! Chocolate? I was obviously joking. To quote Sgt. Hulka:

    “Lighten up Francis.”

  • Ray

    Warren, the buying power of an ounce of gold has not really changed over thousands of years.

    In Roman times, an ounce of gold would buy you a spiffy toga and pair of sandals. In the 19th Century, an ounce of gold would buy a real nice suit from Sears, Roebuck and Co.
    Today, the value of an ounce of gold will buy you the same.

  • we already got :)

  • Anonymous

    Chocolate? I like that.
    And if we could coordinate every woman’s cycle to occur at the same time we would be rich! Rich I say!