Maybe, but surely they can put funds away for a rainy day like the rest of us? They can also increase taxes, borrow money, nationalize resources and a few other options I am sure.
Banksters still own most of the gold, so they will still be making the rules. They will find a way to fleece you of your wealth. There will always be problems as long as banksters can collect undeserved interest. Mike Montagne's Mathematically Perfected Economy is one model that would prevent the bankster's world domination, and doesn't need a metal backed currency to do it. Edit: The Venus Project is another model. But it gives me the creeps because it's just so radical, and from what I can tell, requires sacrificing individual property rights.
:lol: That's really funny! So stealing from the population is justified in your opinion under certain circumstances?
Well being that the NewAud would be fixed against Gold, foreign currency would fluctuate as it does now and has it has always done relative to their currencies value against gold. If China wants to keep printing and therefore undervaluing the Yuan then they create more inflation and more and more Yuan will be required to fund anything they buy.
Dwaine is right, just because your currency is finally a sound one doesn't mean that anything you have mentioned has to change. Instead of printing money to fund a war for example, you borrow money, raise taxes etc. This way the costs are up front and known to all and the payment of those costs can be judged in complete transparency as the govt of the day deals with paying back the debt. Instead of the current status quo of inflation which only realy hurts the lower and middle classes . What it also does is, it restricts a governments ability to go to war without serious considerations of how it funds the war.... = less unneeded wars.
A classical gold standard can only work with the abolishment of fractional reserve banking. They may have large amounts of gold now, but that won't last long without the ability to create money into existence. It abolishes the ability of central banks to systematically create inflation/deflation/business cycles and the multiplication of debt. A complete overhaul of how we control the cost of money (interest) would then be required. That is a whole subject on it's own but I suspect once that you have sound money a free market mechanism would take over like it always should have had. ie when debt can not be created out of thin air, the interest rate will be more strongly determined by the borrowers ability to pay and will be more strongly determined by a borrowers track record. Ie those that pay down debt faster, get lower interest rates from lenders.
IMO even if they went back to a gold standard (which i think is highly unlikely ) it will still be a fractional system .
Whatever economic theory and economic model they propose it will be in favour of the banking system. He who holds the gold makes the rules. The "House" ie "central bank" always wins. - because even when the banks go bankrupt they get bailed out.
Well a fraction system would be a whole lot better than FIAT and how long that system lasts will be completely determined by the level of the fraction. Ie a high reserve lasts longer before it implodes, low reserve happens faster.
Well we have a central bank in Australia that isn't run by the big banks like the US Fed. A classical gold standard simply drives banks back into simple service providers at a fee instead of speculators creating vast quanities of wealth for sharholders at the expense of the public.
Is there room in the Aussie constitution to hire Ron as my chief financial advisor Bugger that, having to stand up and deal with all the parliamentary BS on a daily basis instead of getting on with the job would be unbearable. Hence why our politicians get paid bugger all because anyone really worthy of running this joint well and deserving of big bucks is running companies like BHP, RIO, Apple etc. We pay peanuts because the system only allows us to hire monkeys. The system needs a severe overhaul before we can get on the right track.
