from FACEBOOK
The Gold standard debunked 80 years ago.. THere’s not enough Au or Ag in the ground to support an Earth-wide economy of 6+ Billion people….
*** my response ***
I believe, respectfully, that you missed the point. It’s not about Au or Ag. It’s about selecting something (anything) that limits the “sovereign” from adulterating the currency. With a fixed amount of Au in the universe, who cares if a dollar maps to micrograms as opposed to ounces. The respective gooferments can NOT just print more “wealth” that they use. From the Civil War to the Fed, prices gently declined. The greenback and the gold specie were circulated equally. “Good as gold”. Unfortunately, the Fed allowed the politicians to escape the chains of fiscal discipline. They can’t raise taxes so they inflate the currency. Look at the value of a dollar. It lost GT10% against the Euro last week alone. Argh!
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I’ve blogged about my realization at the Smithsonian. The franc of Louis 1 was a hockey puck of gold; fast forward to Louis 14 and it’s a thin shirt button. That demonstrates inflation.
If we mined all the gold, currency units would be mapped to ounces of gold. Who cares if it mili ounces or nano ounces. It restricts how much currency the gooferment can print.
It doesn’t matter if it is gold, silver, or something else that’s limited in supply. The idea is to PREVENT gooferment from creating it. Out of thin air!
Argh!
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Reinke Faces Life 