@wallstreeterww 182873 wrote:
I just wonder why, we wont go back to backing our finances by gold?
i think its because it will limit the banks to making less money literally from air. besides, the money would have to be backed by gold, so the money supply would have to be proportional to a country’s gold reserves. this obviously becomes a problem when your country just prints IOU bills without needing to back them up with anything, making it fiat money.
i also read somewhere that the cause for german hyperinflation in the 1930s was their refusal to move away from gold backed finances while US and UK did. got to catch up on the research there not to sound like an ass.
but there are probably bigger issues at stake here and i’m not too knowledgeable in this area.