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<p>[QUOTE=&quot;InfleXion, post: 1367149, member: 29012&quot;]Your enthusiasm aside, a metal backed currency is the key to fiscal responsibility. It enforces it by not allowing money printing which has enabled otherwise unfundable wars and record debt levels.</p><p><br /></p><p><br /></p><p>This is exactly what I was getting at in an earlier post, that a gold standard is self regulating. It doesn&#039;t rely on the ability of people to set monetary policy whether they are good or bad at it. It allows the free market to set the policy. It doesn&#039;t need to be global either. Any nation can use a metal backed currency, and then that would be the one stable currency not being devalued like the rest. Other nations not getting on the bandwagon would not inhibit the benefits of stability gained by this. Whether the rest of the world buys and sells using gold does not impact the ability of any other nation to use gold as a peg. The fact that nobody has done this yet is perplexing considering that whoever does so would instantly be the most sought after currency in the world. I suppose the best explanation is that for any nation to do so would require significant devaluation and/or deflation to do the peg, but after the peg it would have all the safe haven benefits of gold.[/QUOTE]</p><p><br /></p>

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