> No, price controls are setting the price relative to a standard that's backed up by guns (guns = "control", as in, if you don't do what I say I can shoot you, or point a gun at you and take you to jail). Dollars are already backed up by guns, so the notion of 'price controlling' dollars makes no sense.
On the contrary, with a fixed-ratio gold standard currency it is still the state who said that a dollar was by definition equivalent with, say, 1/35th of an ounce of gold (as it was just before the U.S. finally abandoned the standard for good). But the only reason the government would give you $35/troy ounce was because of the men with the guns, and the government could change their minds.
In fact, the U.S. did arbitrarily change their mind several times throughout their history about "what gold was worth". This didn't change the market value of gold of course, but this didn't stop the politicians from abusing fiscal policy for their own interests.
The interesting thing is more that there was a market value of gold which was different from the "official" government price of gold, which should illustrate by itself the issue.
Rather there was never anything special about gold except that people thought it was special. The U.S. started off on a gold and silver standard after all, which led to problems fairly soon after since the difference between gold and silver value that Congress decreed was not always the difference the markets created.
While I'll agree it's possible to have gold-backed fiat currency (like the Civil War-era greenbacks), there's no reason why it's "more responsible". It's still just as susceptible to government intervention and it unnecessarily conflates non-orthogonal concepts for the sake of... what?
Gold was only valuable because people thought it was valuable. If you went to a desert island you could form an economy on water bottles. Prisoners actually did form economies on cigarettes, and when cigarettes were banned the currency shifted to cans of mackerel.
As far as I'm concerned gold-backed dollars make as much sense as dollars backed by sardine cans. At least true fiat currencies (and Bitcoin) finally gave up the middle-man and acknowledge that their currencies are worth what people think they're worth. It may be too spooky, but it's the truth.
Not entirely true. Gold is a good choice because it's chemical properties make it fungible, durable, and easily verified (using low tech touchstones). These properties reflect themselves in bitcoin. As for why it's more responsible to have a commodity backed currency, it's because the exchange rate is set by statute and any legislator that messes with it is potentially accountable to the downstream effects.
On the contrary, with a fixed-ratio gold standard currency it is still the state who said that a dollar was by definition equivalent with, say, 1/35th of an ounce of gold (as it was just before the U.S. finally abandoned the standard for good). But the only reason the government would give you $35/troy ounce was because of the men with the guns, and the government could change their minds.
In fact, the U.S. did arbitrarily change their mind several times throughout their history about "what gold was worth". This didn't change the market value of gold of course, but this didn't stop the politicians from abusing fiscal policy for their own interests.
The interesting thing is more that there was a market value of gold which was different from the "official" government price of gold, which should illustrate by itself the issue.
Rather there was never anything special about gold except that people thought it was special. The U.S. started off on a gold and silver standard after all, which led to problems fairly soon after since the difference between gold and silver value that Congress decreed was not always the difference the markets created.
While I'll agree it's possible to have gold-backed fiat currency (like the Civil War-era greenbacks), there's no reason why it's "more responsible". It's still just as susceptible to government intervention and it unnecessarily conflates non-orthogonal concepts for the sake of... what?
Gold was only valuable because people thought it was valuable. If you went to a desert island you could form an economy on water bottles. Prisoners actually did form economies on cigarettes, and when cigarettes were banned the currency shifted to cans of mackerel.
As far as I'm concerned gold-backed dollars make as much sense as dollars backed by sardine cans. At least true fiat currencies (and Bitcoin) finally gave up the middle-man and acknowledge that their currencies are worth what people think they're worth. It may be too spooky, but it's the truth.