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Originally Posted by 20000miles  The part about restricing government spending is vitally important - the US hasn't had a single balanced budget in 40 years. |
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Originally Posted by 20000miles American Governments have consistently debased dollars, as I have pointed out above. |
The US dollar is the de facto currency of global trade. That means uncle sam gets a little cut of every international trade made. It also means they can inflate their currency with relative impunity - we're effectively living in their Zimbabwe. You didn't think that successive US governments would intentionally embark on a self destructive course, did you?
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Originally Posted by 20000miles Is gold not a stable money? Does it not keep it's puchasing power? |
As it turns out, not really. In the mid to long term view, the world at large is reaching upwards into orbit and beyond for a variety of reasons, primarily scientific but ultimately financial. There are
hundreds of millions of large boulders just floating around up there with
individually more raw iron, gold, platinum, copper, and sundry materials than ever have been mined from the earth's surface or ever could be mined. We've already reached these rocks, even landed on them. It won't take long (four or five decades) before we start to exploit these essentially infinite resources.
Of course, that will have more profound effects on economies than just changing a fiat currency, but it does underline the futility of using one particular yellow metal as a backing for your economic system.