all gold standards fail

It is often claimed by gold aficionados that a return to a gold standard would bring a more stable monetary system. A gold standard, it is argued, would be free from corruption and government interference.

Yet history shows that all gold standards fail. Whether it's kings of yore shrinking the size of coins or President Nixon declaring the US would cease to honour redemption of dollars for gold, every gold standard has failed. It is only a question of timing.

Defenders of a gold standard may counter that a gold standard frees the financial system from government interference. However, again, history shows that governments and monarchs can't help but meddle. There is nothing intrinsic about the gold standard itself which gives immunity from interference.

To which a second counter argument may be made; if we kept the rulers honest then the gold standard would remain untainted. However, if human behaviour could be corralled, if the avarice of rulers could be tamed, there would be no need for a gold standard as a tame government or monarch could be trusted with even the loosest of paper currency.

Therefore, a gold standard fails at preventing the very thing which is argued for its implementation; the control of human behaviour. All gold standards fail, eventually.