If you read his response, he agrees with me, either deflaltion (as he says, money stays constant and prices drop by 3%), however, he forgets that deflation spiral out off control just as inflation do, and 1929 was a period os "gold back currency" with excessive deflation, which was exactly my argument, either major deflation or inflation, and thus extremes in the economic cycles. Maybe Friedman is an idiot, but he is right, IMTO, that price stability occurs when money aggregates match growth in GDP (or GWP), and if Friedman is not an idiot, then tying such money to gold will force extraction of lesser and lesser ores and thus inflation, quite simple. That is what I have been terming the "Sodom bed" of gold backing of currencies.
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