Hey, everybody. Welcome back to the What Is Money Show. I'm sitting down today again with my

friend, anonymous friend, Lester. And we're going to be talking about the twilight of gold.

And we left off last time, we were reading through the conclusions of the Kuntliff report,

which more or less explained the mechanics of the gold standard at a very intricate level.

So, Lester, where should we pick up today?

Well, let me just restate.

Like, what we covered at the end of last time was so dense.

And there are so many light bulbs going off for me,

even just talking about it with you,

that I kind of want to restate it.

Because it's worth restating, even if you're going right from the last episode into this one, I think it with you, that I kind of want to restate it because it's worth restating,

even if you're going right from the last episode into this one, I think it's like so

profound. So the mechanism, the way the gold standard worked, it was a mechanism whereby

a favor, I mean, this is very easy to understand, a favorable export balance

by definition attracts or increases money in circulation. So, right, if you're exporting more

than you're importing, money is coming into your country. Right. And an unfavorable trade balance

causes a decrease in the money in circulation.

So both an increase of money coming in and a decrease, an increase of money going out,

an increase or a decrease in money supply, you can see how both of these things can cause a change in prices within your country, within your local economy.

In a similar way, if there's some sort of euphoric rise in credit and loans, somehow, like,

we experienced this here in the United States, then that also increases prices.

But then those new higher prices domestically make it profitable.

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