Comment by FabHK
4 months ago
Sure, and that gold standard failed. Fiat (with a money supply that can be discretionarily managed, and allows for monetary policy) is indispensable to a modern economy.
4 months ago
Sure, and that gold standard failed. Fiat (with a money supply that can be discretionarily managed, and allows for monetary policy) is indispensable to a modern economy.
It didn't "fail". It was gradually dismantled and replaced by a new economic order based on credit.
As a homework exercise, I’d like you to consider just how much gold would be necessary to back the current amount of dollars in circulation.
This is a dumb question. The Fed can endlessly print as many dollars as it wants. They could print $20 trillion tomorrow. See? Just think about how much gold would be required to back that $20 trillion! Clearly gold is stupid. Right?