Macleod: The Future of Money Is Gold (Not Crypto)
The comments below are an edited and abridged synopsis of an article by Tyler Durden
This article explains why the successor money to failing fiat is gold, not cryptocurrencies. Cryptos can only act as stores of value while fiat exists. It describes how a world transacting with monetary gold and properly constituted gold substitutes works. It explains how and why unbacked bank credit expansion, which in Roman law was ruled to be fraudulent 1,800 years ago, can and should be eliminated in a post-fiat world, thereby ending destructive credit cycles.
Gold exchange standards, which are comprised of gold-backed money administered by the state, worked extremely well when properly implemented, and inflation is at the root of the current crisis. If the transition from fiat back to gold is handled properly, a recovery to fully functioning economies need not take more than a year or so.
The pressure on future governments to reject inflation in favour of free markets and sound money should not be underestimated. It is not rocket science. It will require politicians to hand back to individuals the responsibility for their own actions, enabling the requisite cuts in government responsibilities and expenditures to be made.
The welfare state and all the government actions to protect it will have to end, with the exception of the absolute basics.
The politicians who will make these changes do exist. The moment fiat collapses, they will emerge. It will be in their interest to do so, and monetary collapse prior to civil disruption can be avoided.
Up for discussion: Introduction; the basic function of money; trading with gold as money; the role of bank credit; pricing in gold; and government finances.