Talk:Cross of Gold speech

From Wikipedia, the free encyclopedia

[edit] Puzzling sentence

I'm no economist, but I must admit that I find this sentence baffling:

The deflation that would result from the gold standard backed by the Republicans would benefit banks by making it harder for their debtors to pay back their loans.

Under what circumstances would it benefit creditors to make it more difficult for debtors to pay off their loans? --Jfruh 18:31, 28 October 2005 (UTC)

The banks didn't benefit from it being harder for debtors to pay off loans, but it did benefit in that the same money would have a higher value. --Rmdsc 03:17, 21 November 2005 (UTC)

That should instead say that it would be a loss to the banks because loan interest rates would be below inflation, causing a negative return from the loan CompIsMyRx 23:25, 14 February 2006 (UTC)