Couldn’t mine gold in the US. The Soviet Union was the biggest gold producer the world back then. So in effect, the Soviet Union controlled the West’s money supply while they were on the gold standard.
The boom and bust cycles never went away though. They merely threw up enough barriers for the commoners to believe they are safe, while also locking most commoners out of meaningful participation in the markets.
They abandoned the gold standard because it suffered from acute boom and bust cycles.
They abandoned the gold standard because they couldn’t mine enough gold to back the amount they were lending.
Couldn’t mine gold in the US. The Soviet Union was the biggest gold producer the world back then. So in effect, the Soviet Union controlled the West’s money supply while they were on the gold standard.
The boom and bust cycles never went away though. They merely threw up enough barriers for the commoners to believe they are safe, while also locking most commoners out of meaningful participation in the markets.