I'm not sure about it. I tend to lean toward going back to a precious metals standard. Part of the reason we're in this mess is that we're using an unbacked, fiat system. The only reason the currency has value is because the government says so.
The main difference between the current system and the one that pocketechange is proposing is that in his theory the currency would be minted by the government itself and not a central bank. Therefore, it wouldn't have to pay interest to itself. However, it would still be a fiat system so it would allow for unlimited currency-printing. That's just going to cause another similar crisis eventually.
oh so you are saying that even if they implemented the method he is talking about it would only be temporary. That sounds logical too, not a permanent fix.
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It could be a temporary patch, but any and every fiat currency in history has gone to zero value. So in the long-term it wouldn't work out either.
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yes sir Blondie that's why when I heard that Trump's plan to tie the dollar back to a gold standard I was kinda hopeful but I haven't heard anything about that one for awhile.
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That wouldn't be able to happen until hyperinflation kicks in and the dollar price of an ounce of gold goes above $80,000+. Then, assuming the US hasn't gotten rid of it's gold reserves and actually has the gold it says it does... then it would be able to go back on it. It likely wouldn't though because that would limit its spending. Government doesn't like to be restrained.
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rats.
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