Eons ago, I watched a piece about how the depression spread from the US to Europe. The piece presented it as a function of everyone being on the gold standard. As Europeans continued to buy US goods, they essentially paid in gold. The outflow of gold required a reduction in the amount of money in circulation, causing a depression.
^ That’s one of the reasons the gold standard was dumped. If the money supply is decreasing central banks can create more simply by cutting interest rates. If you are the gold standard you are just stuck.
Sure, like tying your rudder and lines in place does on a ship. Really good idea if you are really convinced of stable weather and you need to catch some sleep and set you alarm to awake and check things out regularly. Really stupid otherwise because that kind of
Stability = Catastrophe
when you are in a dynamic situation. And few things are more dynamic than a modern world economy.
And to each his own, said the man as he kissed the cow…
My equivalent tokens for security are my solar panels and home battery, abundant well water, huge nopal cactus grove, neighbors who farm maiz chilies squash and swap them for the fruits from my nopales, and the goat and sheep herder who makes delicious rural cheese…
Watching the skies for portents, ooops, I mean the internet.
But what is GDP? These days it is just the sum of currency and credit which doesn’t reflect economic progress. More dollars = rise in GDP. You can’t measure economic progress with statistics anymore (if you ever could).