[Analysis of the Economic Impact of Constant Gold (Part Four)]
Four, Social Structure and Power Transfer
1. Wealth Redistribution Effect
Creditor vs. Debtor: Deflation benefits creditors (those holding cash), while mortgage holders see their actual debt rise. From 1929 to 1933, nominal debt in the United States remained unchanged, but the real burden increased by 40%.
Rise of Power in Gold-Producing Regions: Countries like Russia and Australia gain geopolitical leverage, potentially forming a "Gold Cartel" similar to OPEC.
2. Growth of the Underground Economy and Black Market
Surge in Illegal Gold Trading: For example, private gold hoarding in India exceeds 25,000 tons, with the government previously enforcing confiscation. Under a constant gold price, black market transactions may expand to evade regulation.