1279: The Gold Standard | Skeptical Sunday

Could returning to the gold standard fix inflation? Nick Pell explains why this shiny solution might not be all it’s cracked up to be on Skeptical Sunday.

Welcome to Skeptical Sunday, a special edition of The Jordan Harbinger Show where Jordan and a guest break down a topic that you may have never thought about, open things up, and debunk common misconceptions. This time around, we’re joined by writer and researcher Nick Pell!

On This Week’s Skeptical Sunday:

• The gold standard wasn’t some ancient monetary relic — it only emerged in 1821 when Britain pegged the pound to gold, with most industrialized nations hopping on board by the 1890s. It was abandoned during World War I because governments simply couldn’t fund the war while maintaining gold convertibility.
• Today’s global economy is roughly $115 trillion, while all the gold ever mined is worth about $28.5 trillion — roughly a quarter of global GDP. This massive mismatch means returning to gold would require either revaluing it to astronomical prices or causing catastrophic deflation.
• The appeal of the gold standard isn’t really about the metal itself — it’s about trust. People are drawn to money that doesn’t depend on government promises or political whims. Gold represents certainty in an uncertain world.
• A return to gold would likely benefit net exporters like China while punishing net importers like the United States. Trade imbalances would transform into gold hoarding, creating constant liquidity crises that global commerce simply couldn’t survive.
• The desire for “sound money” isn’t misguided — it’s the solution that’s flawed. Better monetary policy rules, multi-asset pegs, or systems like Switzerland’s debt-repayment requirements could provide the discipline people crave without nuking the world economy.
• Connect with Jordan on Twitter, Instagram, and YouTube. If you have something you’d like us to tackle here on Skeptical Sunday, drop Jordan a line at jordan@jordanharbinger.com and let him know!

Like this show? Please leave us a review here — even one sentence helps! Consider leaving your Twitter handle so we can thank you personally!

Please Scroll Down for Featured Resources and Transcript!

Please note that some of the links on this page (books, movies, music, etc.) lead to affiliate programs for which The Jordan Harbinger Show receives compensation. It’s just one of the ways we keep the lights on around here. Thank you for your support!

• Sign up for Six-Minute Networking — our free networking and relationship development mini course — at jordanharbinger.com/course!
• Subscribe to our once-a-week Wee Bit Wiser newsletter today and start filling your Wednesdays with wisdom!
• Do you even Reddit, bro? Join us at r/JordanHarbinger!

This Skeptical Sunday Is Sponsored By:

• Hiya: 50% off first order: hiyahealth.com/jordan
• The Perfect Jean: 15% off first order: theperfectjean.nyc, code JORDAN15
• Quiltmind: Email jordanaudience@quiltmind.com to get started or visit quiltmind.com for more info
• Homes.com: Find your home: homes.com

Resources from This Skeptical Sunday:

• What Was the Gold Standard? | The Royal Mint
• Brief History of the Gold Standard in the United States | Congressional Research Service
• The Gold Standard Collapses | Sveriges Riksbank
• What Is the Current Inflation Rate in the US? | USAFacts
• US Inflation at 9.1 Percent, a Record High | PBS NewsHour
• Inflation: Prices on the Rise | International Monetary Fund
• What Is Inflation and Why Does It Matter? | Peter G. Peterson Foundation
• China Trapped in a Cycle of Deflation | GIS Reports
• The Economic Consequences of Mr. Churchill by John Maynard Keynes | World Gold Council
• A History of Central Banking in the United States | Federal Reserve Bank of Minneapolis
• Lessons from Past Productivity Booms | Board of Governors of the Federal Reserve System
• The Panic of 1873 | PBS American Experience
• How Bad Was the Great Depression? | Federal Reserve Bank of St. Louis