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<p>[QUOTE=&quot;calcol, post: 8251005, member: 77639&quot;]Give us some details on how this would be implemented.&nbsp; But consider the following:</p><p><br /></p><p>The total world reserves of gold are worth about $US13T.&nbsp;&nbsp; Almost half of that is in jewelry, with the biggest holdings in India and China.&nbsp;&nbsp; Governments own only about 15% of it.&nbsp; The amount of known reserves in-ground is small (about 25%) compared to what’s already above ground.&nbsp; And the biggest in-ground reserves are in Russia and Australia.</p><p><br /></p><p>Compare the above with the US M1 money supply (very liquid supply such as cash, checking accounts, savings accounts, etc.) of about $US20T.&nbsp; And that’s only the US.</p><p><br /></p><p>So, how’re you gonna setup backing the dollar with gold … fiscally, physically, legally and politically?</p><p><br /></p><p>Answer:&nbsp; You’re not.&nbsp; Gold is now an economic pipsqueak compared to the world economy.&nbsp; Since mid20th century, the world population and economy have grown way beyond the ability of any commodity to be a general medium of exchange or to back whatever is designated as a medium of exchange.</p><p><br /></p><p>Current non-government virtual currencies, like bitcoin, have a design flaw that will lead to their disappearance.&nbsp;&nbsp; Namely, they will eventually disappear due to lost or forgotten passwords.&nbsp; It’s estimated that more than 10% of bitcoin is already gone.&nbsp; There is no easy fix to this problem.</p><p><br /></p><p>What we’ll continue to have is mediums of exchange established and supported by governments.&nbsp; These are already pretty much virtual.&nbsp;&nbsp; Most of the cash flow of most folks in the industrialized world does not involve cash.&nbsp;&nbsp; And other paper forms (check, money orders, etc.) are fast going away.&nbsp;&nbsp; I would guess that less than 10% of my family’s monthly cash flow involves cash or paper … it’s done via the workings of electrons, radio waves, semiconductors and magnetic memory.&nbsp; In other words, it’s virtual.</p><p><br /></p><p>The penalty, which won’t go away, is inflation.&nbsp; Only political forces can keep it low, and those will be variable over time.</p><p><br /></p><p>References:</p><p><br /></p><p><a href="https://www.visualcapitalist.com/chart-how-much-gold-is-in-the-world/" target="_blank" class="externalLink ProxyLink" data-proxy-href="https://www.visualcapitalist.com/chart-how-much-gold-is-in-the-world/" rel="nofollow">https://www.visualcapitalist.com/chart-how-much-gold-is-in-the-world/</a></p><p><br /></p><p><a href="https://fred.stlouisfed.org/series/M1SL" target="_blank" class="externalLink ProxyLink" data-proxy-href="https://fred.stlouisfed.org/series/M1SL" rel="nofollow">https://fred.stlouisfed.org/series/M1SL</a></p><p><br /></p><p>Cal[/QUOTE]</p><p><br /></p>

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