1) Gold has actual value because its worth something whether you like it or not.Originally posted by: 3chordcharlie
He is wrong for the same reason that everyone who supports a gold standard is wrong.
For all the myriad arguments about whether gold has any actual value, etc, the gold standard fails for being deflationary. It doesn't need any other destabilizing failures to be a bad idea.
edit - broke the quotes
2) Being deflationary is not a bad thing at all. Prices should go down in a healthy economy! It also encourages saving and wise investments. A lot of people automatically think of the Great Depression when they think of deflation and thats not a good way to look at it at all.