Gasoline at 10 cents a gallon and falling

George Reisman's explanation of the gold standard is so clear that even an economic dunce like myself can understand it.

"Gold is now at $700 per ounce, and rising. Above is a picture of a $20 United Stated gold coin, known as a Double Eagle. If you look carefully, at the bottom of the coin, you can actually see where it says 'Twenty Dollars.'

"This coin contains approximately one ounce of actual gold, which means that at today’s market price of gold, it’s worth $700. And this means that one gold dollar is worth $35 of today’s paper dollars. And that means that one gold dime is worth $3.50 in today’s paper money. This last, of course, is roughly what a gallon of gasoline costs in today’s paper money. Which means that a gallon of gasoline costs just 10 gold cents."

It's enough to make a guy sit back and go "hmmm ..." And after a few "hmmms," it's enough to make a guy very, very nervous.