Gold also needs to be backed by something - by an economy, by available goods and services. Without those, gold - or sea shells, or any other "money" is of no use. Otoh, in a healthy economy, and with an ethical population, ANY money would work, even a simple word and a handshake.
But... Let's come back to the real world. I still think that "gold only" money may be a little clumsy. If I want to give a small tip, or give something to a street musician, I don't want to be scrambling for one quatermillionth of an ounce of gold.
What about the following -- a combination. Make gold a legal - global even - currency. Simultaneously, maintain national paper currencies. Having two parallel monetary systems would keep politicians honest.... the moment they would start running the printing press, their national currency would decline.... And gold would start leaving the country, just as in the old days. And yet, there would be no longer need to stretch the price of Gold to an absurd degree.
I could buy a condo in an international resort for gold -- and I could still buy a six-pack of Bud for the same old 5.99 US.
Probably, a pre-requisite for ANY sound monetary system will have to be a mandatory psychiatric evaluation for any politician who thinks that borrowing and spending infinite amounts of money creates prosperity..... :) |
