Why we need the Gold Standard

Published in Business Line on Feb 28, 2007

The article shows that the only cause of Inflation is Government printing of excess Money. Yet, there has never been an instance when Central Banks have acknowledged... but as Peter Schiff puts it, "Expecting Governments to accept their role in creating inflation is like asking the Mafia to give an honest report on crime".

Our RBI goes a step further and states that a 4-4.5% inflation is actually good for the Indian economy -- almost as if they are doing us all a favour by debasing our currency. On top of it, they claim that this wisdom comes from their experience..... how would they ever know what 0% or 1% inflation would be like -- they have never experienced it. Anyway, we can only hope that sanity prevails sooner or later and they move towards a Gold standard.