The Gold Standard

I've been giving gold a lot of thought lately. Mostly because I don't own it (I do think it's extremely speculative right now), but yet, I am fascinated by its value (perceived or otherwise). I have reached out to two friends (Shawn, Brad) to help better understand The Gold Standard. Thankfully, NPR's Planet Money has two AWESOME podcasts regarding the topic. To understand the Gold Standard, you need to understand both sides of the argument coin (pun intended).


Part 1

On today's show, we visit the charming curmudgeon and respected finance writer James Grant. He says we should go back on the gold standard.

His basic argument: Under the gold standard, money holds its value. Central banks can't create (or destroy) money at a whim.

Part 2

Franklin Delano Roosevelt ignores the advice of America's big-name economists — and listens instead to a guy who helped take care of the trees on his estate.

Montagu Norman, head of the Bank of England, gets a coded message at a critical moment — and completely misunderstands what it means.

On today's Planet Money: The gold standard and the Great Depression.