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<p>[QUOTE=&quot;Cherd, post: 1434497, member: 24754&quot;]Switching back to a monetary system based on metals could work, but it would require a culture wide change in perception of &quot;money&quot;. Fallacies in the perception of the word are present in quotes from this thread. For instance, people make the argument that the government would have to adjust the size and/or metal content of coins based on metal prices. They say, &quot;what would happen when the price of silver went from $30/oz to $60/oz, we would have to adjust the coins&quot;. But, there would no longer be a conversion between silver and the dollar, alternatively, the dollar would represent a specified weight of silver. If the value of silver increased then the value of the dollar would increase, but there would be no change in the coinage. If we adjusted the coinage, then we would not truly be on a metals based monetary system. This is why we came off of this type of system in the first place, people were trying to adjust the value of the dollar independent of the value of metals. It just can&#039;t work like that.</p><p><br /></p><p>The reason that it can&#039;t work is because we are used to a system that allows inflation. We all work, and we all want a raise every year because it makes us feel as though we are being rewarded for our efforts. Corporations, farmers, and business owners have to increase the price of their products a little more each year to account for increased labor costs. In the end it is all a facade,&nbsp; our increasing salaries do not actually represent an increase at all. It&#039;s all part of a system that is designed to make us &quot;think&quot; that we are being better compensated.</p><p><br /></p><p>If we switched to a metal based system then inflation could not happen (no more systematic raises). The value of metals would essentially be consistent. But if something occurred that drove up the value of metals (emerging economy, technology that requires metal), then the value of the dollar would increase. This would basically cause &quot;deflation&quot; of the perceived value of goods. The price of a loaf of bread would go from $2 to 50 cents. This is completely backwards from what we are all used too, and that is why it wouldn&#039;t work.[/QUOTE]</p><p><br /></p>

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