| what that would accomplish?
the whole point of the gold standard argument is to base paper currency against something whose value is relatively static.
what you just suggested was to keep the value of inflated (what libertarians like to call "monopoly") money. in doing so, you'd falsify the value of gold in the process - and the price of gold would be based on fiat money rather than the other way around. think about it.
people have been buying gold because of the volatility in the foreign-exchange market, not because they fear it will collapse. people believe in the stock market, but when the market's shaky they tend to tuck their assets away in something conservative/safe.. i've already mentioned sensible solutions to that problem (currency volatility) - much easier to accomplish than a return to the gold standard. perhaps another method would be to move towards a universal system of currency valuation. however, that solution isn't feasible either because of the political rammifications it entails. |