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<p>[QUOTE=&quot;Clawcoins, post: 2648264, member: 77814&quot;]Yes, all you need is one country that has any type of inflation issue.</p><p>They&#039;ll convert their money to USD then convert it to US gold.</p><p><br /></p><p>Then keep all their &quot;cash&quot; in gold.&nbsp; then when they want to buy something then convert it to their local currency, then buy.</p><p><br /></p><p>you get a gigantic sucking sound of gold from Fort Knox of foreigners getting USD and converting it to gold.</p><p><br /></p><p>What you get is USD traded in for gold. Then the US would have to buy gold at what rate now??&nbsp; to maintain M1/M2? Money supply?&nbsp;&nbsp; Or simply demonitize the traded USD, which would shrink the money supply and cause massive other problems.&nbsp; Imagine how derivatives would affect this gold backed scenario.</p><p><br /></p><p>With increased populations, global trade, currency exchanges, etc it made no sense.</p><p><br /></p><p>If people think cash is worthless then they can keep it in PMs and simply trade it for USD when they buy something.&nbsp; Then there are no problems.[/QUOTE]</p><p><br /></p>

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