Drew Ramos77 said:If that were the case, most nations would face bankruptcy overnight—with the USA leading the charge. Let's be honest: the gold standard was abandoned specifically to allow governments and politicians to run up unchecked debt. For bankers, the current setup is their version of a golden era.
Why would anyone reintroduce a gold standard when the current one is already working perfectly for the banking elite?
And let's be clear: there isn't even a theoretical way to bring back anything resembling a gold standard. To do so, you would need one of two things to happen:
1) Every single politician on the planet decides to unite against the bankers.
or
2) Every banker in the world agrees to walk away from their massive profits in the name of "social solidarity."
Pick your poison. Which of those two scenarios seems more likely to you?😁
Under the Woodrow Wilson agreement back in 1944, the Federal Reserve was pegged to gold, while all other global currencies were pegged to the dollar. That agreement meant trade imbalances were settled at year-end through actual gold payments.
By the early 70s, the USA had racked up a massive trade deficit and simply refused to pay up in gold—instead, they unilaterally decoupled the dollar from the gold standard. Since the Federal Reserve was the world's reserve currency, they could pull that stunt without any consequences whatsoever. The fallout? We are left with this uncontrolled, unsustainable monetary mess that will eventually—sooner or later—require some kind of reckoning.
The point isn't about what kind of money governments *want*; it's about what kind of money they *must* have in the future to prevent a total monetary collapse.
I was merely suggesting that returning to a gold standard—which worked perfectly fine for thirty years—is one potential way out.
Given the sheer mountain of cash currently in circulation, implementing a gold standard would send gold prices skyrocketing, but that's irrelevant to how the monetary system itself functions. Only those who already hold the gold would see the profits.