I have been asked how the gold standard could function in our current economy. I unfortunately could not answer all the questions asked. I will list a few of the questions I was presented with in hopes that I will learn more about economy and monetary systems.
1.With most of our nations gold spent in other countries how could we even convert back to that standard?
2.How could a limited supply of gold and silver ever be used with creditors who must back all credited, especially during the transition back to the standard?
3.Could a stock market even function properly under the gold standard?
I believe in a solid monetary system, but I honestly don't completely know how it would function, and therefore could not answer many of these questions. I after all have only known a flawed fiat system to base my knowledge on.
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Also check out from Mises any and all of their books on banking, especially free banking!!
http://www.mises.org/store/product.aspx?ProductID=517
http://mises.org/money.asp
That is a great book and at a very intellectual website to learn principles of the free market based off the Austrian model.
Thankyou very much!!! Now I have a much much greater understanding of comodities, and the medium of exchange. As they say, knowledge is power! XD
"People are stupid; given proper motivation, almost anyone will believe almost anything. Because people are stupid, they will believe a lie because they want to believe it’s true, or because they are afraid it might be true." -Terry Goodkind