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Oh, there's lots of options. There's the gold standard. There are an estimated 250,000 tons of gold in the world, with estimated reserves of 60,000 tons. (http
by mcguire 4y ago
Oh, there's lots of options.
There's the gold standard. There are an estimated 250,000 tons of gold in the world, with estimated reserves of 60,000 tons. (https://www.usgs.gov/faqs/how-much-gold-has-been-found-world https://www.usgs.gov/faqs/how-much-gold-has-been-found-world) Unfortunately, quite a lot of that is tied up in things like jewelry which is fixable, I suppose. And world gold production (https://www.statista.com/statistics/238414/global-gold-production-since-2005/ https://www.statista.com/statistics/238414/global-gold-produ...) has roughly matched gross world product growth (https://en.wikipedia.org/wiki/Gross_world_product#Recent_growth https://en.wikipedia.org/wiki/Gross_world_product#Recent_gro...) over the last few years. On the other hand, when gold production starts going to zero while economic activity continues to grow, you get deflation and financial collapse, so, yeah.
There's a silver standard and multi-metallic standards, and I'm really hoping there's a hilarious story behind this sentence from wikipedia: "Great Britain accidentally adopted a de facto gold standard in 1717 when Sir Isaac Newton, then-master of the Royal Mint, set the exchange rate of silver to gold too low, thus causing silver coins to go out of circulation." (https://en.wikipedia.org/wiki/Gold_standard https://en.wikipedia.org/wiki/Gold_standard) (Apparently, the US's introduction to the gold standard was also accidental, caused by the 1849 California gold rush.) Unfortunately, those systems didn't prevent a crash about every decade. (https://en.wikipedia.org/wiki/Financial_crisis#19th_century https://en.wikipedia.org/wiki/Financial_crisis#19th_century)
Or you could let things float, like exactly nobody else does. I'm sure that won't be rife with corruption, bank failures, and its own boom and bust cycles.