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<p>[QUOTE=&quot;Cloudsweeper99, post: 706037, member: 3011&quot;]Needless to say, I disagree with much of what you wrote.<img src="styles/default/xenforo/clear.png" class="mceSmilieSprite mceSmilie2" alt=";)" unselectable="on" unselectable="on" /></p><p><br /></p><p>There are no contradictions at all once you accept that gold IS money and therefore doesn&#039;t have a price in the Federal Reserve Note sense of the word. It has a weight [a dollar is .77344 troy oz of fine silver].&nbsp; And paper dollars would not be BACKED by gold, they would be RECEIPTS for gold.&nbsp; And fractional reserve banking has nothing to do with whether or not the currency is fiat or metal.&nbsp; It would be replaced by self-liquidating bills of credit as existed under the gold standard.&nbsp; And there certainly is enough gold and silver to replace the approximately $1trillion in coin and currency if the purchasing power is restored to its natural pre-World War I level plus the new mining that would be encouraged if gold was money again.&nbsp; The world didn&#039;t switch to fiat because there wasn&#039;t enough gold for commerce.&nbsp; The London bill-clearing houses functioned extraordinarily well to service world commerce.&nbsp; The governments switched to fiat so the had enough resources to fight World War I without paying for it through taxes.&nbsp; The ability to print money is the mechanism that enables perpetual war.</p><p><br /></p><p>You are correct that prices will go up indefinitely, but not because people ask for raises.&nbsp; It is because the system is unstable and requires new injections of fiat money every year to service the mounting debt because while the Federal Reserve creates money to back the Treasury debt principal, it does not create the money to pay back the ever-compounding interest.&nbsp; So without inflation, the economy dies in a deflationary collapse.&nbsp; Stability is impossible.&nbsp; With inflation, anybody foolish enough to save money loses.&nbsp; A penny saved is a penny of lost purchasing power.&nbsp; Continuous wage increases for the cost of living are unnecessary when prices are stable.</p><p><br /></p><p>But I agree that this won&#039;t change.</p><p><br /></p><p>Edit: Anyway, I think this was a valuable exchange because while we probably won&#039;t change each other&#039;s opinion, the reader at least gets to read both sides of the story and can do further research to make up their own mind.&nbsp; Thanks.[/QUOTE]</p><p><br /></p>

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