Quote:
Originally Posted by BlackCrayon
going back to the gold standard would never would because there just isn't enough gold in the world to back it. what do you do when you run out of gold or whatever to back currency? no more wealth is able to be created?
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Go back and read what I said. There are enough commodities to back a currency, it doesn't just have to be gold.
If gold was once good enough to back currencies all over the world since the existence of paper money, then a mix of commodities would be good enough to back the world currencies now.
Since Nixon totally took us off the Gold standard in 1971,
only 41 years has passed. That's it. This entire cluster fuck of a global economy has happened since then. It didn't happen before, it happened after. I have also read that it is not true that there is not enough Gold to back currencies again, but lets say it is true, then you use multiple metals.
Yes, moving back to a gold/silver/whatever backed currency would limit lending, but that is a good thing. Not a bad thing. The ONLY reason they are not going back to a backed currency is because those who are profiting the most off of fiat currency will no longer be able to game the system, and every country will have to follow a budget. How can you wage illegal wars, have endless government entitlements, and bail out businesses who are "too big to fail" if you have a budget to keep?