All Venezuela shows is that a currency is backed by taxes, military power and the power of the economy behind it. It wasn't a fleeting belief that caused Venez

All Venezuela shows is that a currency is backed by taxes, military power and the power of the economy behind it. It wasn't a fleeting belief that caused Venezuela's hyperinflation, it was dutch disease wiping out most of their industry followed by oil prices plunging while demand for real goods and services remained static. The level of spending outstripped the economy's ability to deliver, because the output of that economy is largely oil and oil suddenly wasn't worth very much any more (for reasons that had very little to do with venezuela). Venezuela would be fucked for this reason with or without hyperinflation. Hyperinflation is simply a side effect of what they're going through. Gold-link their currency and people would be in just as much poverty thanks to their main export tanking - quite possibly even more.