samhill wrote:If the U.S. would have given an ounce of gold for every $20. &some odd cents during a run on banks we would soon be out of gold even back then. On one hand you want to use gold & silver to stop inflation but in the other you want to receive the inflated amount of what gold & silver would be worth with the inflation.
Gold was worth $35 per ounce after 1934 when the US Dollar was devalued by about 40% overnight. The system worked fine until the Vietnam War, when we began to spend more than we had. Gold does not flow only one way when it is the worlds reserve currency. It Flows both to and from, and a nation in economic balance does not loose its gold. But thanks to the Federal Reserve, we had no gold in our pockets. Only Fractional Reserve currency that was supposedly backed at 10% by gold, but in reality was not due to our fiscal irresponsibility in fighting the Vietnamese, the War On Poverty, etc... So we broke the gold reserve system willfully and intentionally and then blamed gold for it.
Why should the rest of the world suffer because we are totally fiscally irresponsible? Only power (force) can sustain this system. And such power begets hate.