Typhoon wrote:Mr. Perfect wrote:It worked for thousands of years. Don't shoot the messenger. And it will probably happen whether you like it or not, so you may want to bone up on how to sort out the reputable minter thing.
Two problems with a precious metal standard:
1/ It can be fiddled with as with anything else
As the material you posted indicated, getting the government out of the business is a very good idea.
2/ Little, if any, correlation with the amount of precious metal being produced and economic growth
No, interest rates and price fluctuation attracts and flushes out actual quanitites in a "regulatory" manner.
A currency pegged to a basket of commodities in proportion to their global usage makes more sense to me.
What does precedent suggest as the outcome of such a scheme?
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As for a Federal Reserve audit, I doubt that I'll see it in my lifetime.
People have to live in reality. In reality a currency that does exactly what we want isn't even possible, ie perfect price stability doesn't appear to be possible. However what is undeniable across many centuries of human history is that gov't influence over money leads to corruption, so the sooner we get gov't out of the process the better.