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<p>[QUOTE=&quot;robinjojo, post: 7834558, member: 110226&quot;]It can have that effect.&nbsp; The metrics used today to determine a currency&#039;s value, including GNP, political developments, savings rate, and to a degree debt can impact the demand for that currency on the trading markets.</p><p><br /></p><p>Having said that, though, I think any return to the gold standard would cause a collapse economically - think of the deflation of the 1930s, the Great Depression when money was hoarded and which helped to lead to World War II. </p><p><br /></p><p>The fact is, were people to demand redemption of their notes for gold or silver, in the midst of a crisis, the supplies would dry up quickly and governments would be insolvent, leading to a complete collapse of the world&#039;s economic order and ensuing chaos. </p><p><br /></p><p>I think there are issues that need to be address: economic equity and economic sustainability being primary, but chaos is not a good state to be in, especially in a world armed to the teeth with all manner of weaponry.</p><p><br /></p><p>I think the US and the world has crossed the Rubicon with the US&#039;s abandonment of the gold standard in 1971. Given the size of the global economy today, faith and the above metrics are the means to how currencies are valued.[/QUOTE]</p><p><br /></p>

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