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<p>[QUOTE=&quot;Lemme Caution, post: 2899870, member: 90575&quot;]I think that in this point in time it would be well-nigh if not downright impossible, and not merely unfeasible, to peg any currency to PMs under any circumstances whatsoever anymore. Before the creation of our modern fiat currencies, PMs clearly were the primary vehicle for ordinary financial transactions. Then, PMs were withdrawn from day-to-day public usage and stored away in vaults to back up the gold and silver certificates that represented a virtual ownership by the holder of actual stores of gold and/or silver locked away in some secure location. The next step eventually taken was to detach fiat money from any connection to an equivalent amount of value in stored PMs. Once this maneuver succeeded, it was no longer incumbent for the fiat-currency-issuing entities to have any need and/or cause to maintain any equivalency between currency-backing PMs and the fiat currency itself, and storehouse quantities of PMs could be drawn down upon as needed, for whatever purpose designed, without impacting the public&#039;s trust in the solvency of their fiat currency. And now, not in any way surprisingly so, we are faced with a situation where most and in the cases of some storehouses possibly all of the PMs no longer constitute any actual presence, which is to say they have literally &quot;migrated&quot; elsewhere forever. Since PMs, and most specifically so in the case of gold, have a fixed quantitative physical limitation, which is to say that there is a condition of absolute stasis in the amount of gold in existence in the world, fiat currencies long ago passed, and by an already considerable and ever-increasing number of multiples, the point where they could ever be covered by their equivalent in PMs. In summary, it isn&#039;t possible to back up any more than a tiny fraction of the world&#039;s fiat currencies with ALL the existing amounts of PMs put together, so that ship has long since sailed. We are stuck with fiat currency that has no equivalent PM back-up, and as the population and with it the economies of the world grow, that already-enormous discrepancy between circulating fiat currency and existing quantities of PM will inevitably continue to increase at an ever faster clip.[/QUOTE]</p><p><br /></p>

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