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Watch Live as the Republican Party Packs the Supreme Court With Yet Another Far Right Extremist

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KGxvi10/12/2020 1:04:18 pm PDT

re: #155 Hecuba’s daughter

You need a currency where the supply reflects the economic activity of the society, and that’s definitely not true of precious metals. If you double the size of your economy, what do you do with a fixed supply of gold? In a modern society, where most money is “virtual” anyway, I wonder how gold would work.

If we pegged dollars to gold, say $1 was equal to 1 oz of gold, then inflation and deflation would be wild because people buying and selling gold on the market would determine the value of a dollar. Moreover, if a foreign country (or alliance of countries) decided they wanted to fuck with us, they could sell their gold reserves and crash the dollar. Or, if a new gold vein was discovered in some area and extracted, that could effect the value of the dollar. Lastly, it sets up the potential for a run on the banks (a la the start of the depression) where people go to banks demanding the actual gold for their dollars on account.