Quote:
Originally posted by pornguy
The problem with that idea is that there is more money in circulation than there is in gold. So that would only make things worse.
the rich richer and the poor porrer.
Remember that your "rich" may not be enough to stay that way.
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The problem is that after the US got off the Gold standard during the Nixon administration, the only thing backing up the greenback was the US' reputation. This reputation can get seriously rocked by deficits and balance of payment issues.
Proof: see the inverse relationship between gold and the US dollar during the 70's WHICH is happening AGAIN now! Gold goes up, dollar goes down.
By being tied to something of actual value, the dollar is tempered and retains its value. Post Gold Standard, it's anyone's guess when it will stabilize... specially with the Chinese Yuan piggybacking on it.
