While based towards the current fiat system like all MSM publications, the BBC has released an at least somewhat two-sided discussion on whether a gold standard would be beneficial at solving our current Western debt crisis.
Do we need to re-forge the link between money and something tangible?
A popular solution to the financial crisis has been to print more money, but is there another way of fixing our economy? Would the financial system be more stable if each pound, dollar or euro in our pocket was once again backed by gold?
As central banks around the world print trillions of pounds, euros and dollars in new money through measures like quantitative easing – which makes more sense: believing in money that is conjured out of thin air?
Or believing in a yellow metal you cannot eat, put in your petrol tank or even take to the shops?
While a £ note would surely make better toilet paper than an ounce of gold, perhaps we missed the issue of edible, gasoline-engine combustible pound notes?
The BBC’s bias becomes more evident later in the article:
“Every time the price of gold moved, you would find the value of that money in your pocket leaping up and down – an extremely volatile and unstable way to run an economy.”
This volatility of gold prices means it is also risky for investors like Brian and Frances, who have large amounts of their personal savings tied up in gold investments – £40,000 worth of gold might be worth less a year down the line.
And the value of paper fiat currencies are stable? The price of gasoline, heating oil, and food remains flat for months at a time for investors who have large amounts of their personal savings tied up in dollar or pound currency investments?