Are we really debating the reality of backing
our currency to the price elasticity of gold?
Do these “doctors” ever think of the potential of a country discovering
new sources of gold that could destabilize the whole financial system? Worse, what if the country that discovers this new gold source is against American interests?
In theory, backing the currency with a
physical commodity in my opinion makes sense.
But in practice, it can only be achieved if the price elasticity is
zero. The only example that comes to
mind is artwork. But how realistic is
the scenario of backing your currency to a dead painters work? I don’t know about you, but to me, it seems
absurd…
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