#45593
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MountainBiker
Survivalist
member10

I am far from expert on this topic but I do wonder if backing currencies with gold would be anything more than a feel good measure. Unless the paper currency was exchangeable for actual gold, govts will have as much physical gold backing the currency as they elect to say they do. By that I mean if they need to have ten million ounces, they’ll say they have ten million even if they really only have one million. Think about how Germany hasn’t been able to get its physical gold back from vaults in NYC. We all know that the physical gold was probably sold off by the banks long ago leaving the Germans with only an account that says it is there. Why would gold reserves be any more accurate than govt inflation and unemployment #’s which at times seem to be just pulled out of thin air?