Yeah, the only issue I have with a Gold Standard is the sheer volume it would take to back all that paper money.
There just isn't enough for 7 billion peoples financial dealings, is there?
Each dollar today is exchangeable on the open market for one-thirteen-hundredth of an ounce of gold. That valuation could easily be fixed by decree. Of course our massively bloated government is unsustainable under a real money standard, and would thus need to revert back to pre-1913 levels of activity or it would not be able to afford all that it does, which it cannot do even now under a massively inflated fiat currency.
All public debt would also need to be defaulted on. Nations have done this throughout history and survived just fine. Since all that debt was based on fraud to start with, I have no problem with this. It would just mean the US Government would have a hard time getting loans in the future, which is a good thing.
WoW, and how many widows and orphans would loose their saving if that happened?
Every money market fund in the country would bust the buck.
With the current velocity of money, it would remove at least 2.6 times the amount of the default from the money supply.
Bank reserves would be wiped out, Markets would freeze, and most of the US gold is still held by the government, it's not in circulation. It would be 2008 on steroids.....
