Quote:
Originally Posted by Houdini
Despite what Ron Paul says, having the dollar back by gold is a terrible idea. The two largest producers of gold are China and South Africa. There's no way in hell that anyone in their right mind would willingly give those two countries the ability to control our currency. Like you said, if it's something backed like a commodity, it should be something that we control in the U.S., coal, even corn would be better.
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The US already has the largest gold reserves in the world.
I think at least a partial backing will have to happen. Maybe even other commodities as you suggest, or a mix of them. Something will have to give, as the current ponzie scheme we're in has no other long term outcome but collapse. Maybe not next year or maybe not in 10 years, but sooner or later the make believe merry-go-round is going to stop.
We've only been off the gold standard for 40 years, which really isn't a long time. Before that it was off from 1933 - 1944, but they went back to it and kept it there until 1971. Time to go back (to something) and lose the fiat currency.
In regards to China and South Africa being the largest producers, I guess the Americans will need to get back to mining, and fast. I'm sure there is still plenty of gold in them there hills!