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<p>[QUOTE=&quot;InfleXion, post: 1471045, member: 29012&quot;]I would prefer to keep fiat currency as is than to have a gold based currency that required us becoming a nation state in a global government. However I don&#039;t necessarily think that is a requirement. Any nation can have a gold based monetary system and set the ratio for their own currency. As long as gold was the constant variable among different nations&#039; currencies they wouldn&#039;t have to agree on a ratio, because they could just do the conversion into gold and use that as the common factor. Essentially gold would be the money, and every currency would vary in strength depending on the ratio they choose. </p><p><br /></p><p>To your point that some nations don&#039;t have much gold, and would be at a disadvantage initially since that would either restrict them to a lame ratio or a small money supply, this is true, but if they are a wealth producing nation they will be able to trade their surplus for gold and the system would reward the best horses in the race. Whether that surplus is due to gold deposits, oil wells, crops, timber, fiscal responsibility, or simply their ability to produce a superior product, it makes no difference. Things would equalize accordingly. </p><p><br /></p><p>The nations that come out ahead would have the option of acquiring gold to strengthen their currency which would then allow them to buy more from other nations using existing currency without any extra out of pocket, so it would have a practical benefit and balance out the surplus given up to get the gold. Or they could instead spend that surplus internally if they don&#039;t care about currency strength if they are for example not interested in international trade, but rather only having a reliable medium of exchange for their people. </p><p><br /></p><p>Of course forcing nations to adhere to this would be bad for their sovereignty and a step in the wrong direction, but the incentives of the system should be sufficient since nations that do this would gain currency strength against the nations that do not. It would be a self reinforcing paradigm not requiring any central oversight on a global scale. As soon as one nation does this others would most likely follow suit if they are in a position to do so.[/QUOTE]</p><p><br /></p>

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