aqkhan wrote:It won't be easy (to say the least to go back to gold standard or silver standard) because it will wipe out 1.4 quadrillion dollars of derivatives market around the world. You think governments around the world will agree to that? The economy operated fine during the barter system too. So eventually then, we should go to bartering..
Its headed for collapse one way or another. The evil of the fiat system is that others are made to bare the consequence of the collapse instead of the gamblers.
All trade is essentially barter involving 2 parties. The fiat system introduces a 3rd party - a middle man which contributes nothing but skims & scams from each transaction. It stands to reason that if you remove the middle man, the cost of doing business comes down.
Anytime you have some 3rd party middleman inserting himself between the fruits of your labor and your paycheck, bewarned! A robbery is in progress.
aqkhan wrote:Gold is subject to speculation too. And I don't understand people's obsession with gold. Why should it be used as a currency anyway? ..
Probably because its the only thing I can think of that has stood the test of time as honest money. All other paper currencies, and there are 3000 of them or more, have gone extinct. Average time of survival for each fiat currency is I believe 60+ years.
Gold is not a good choice for a country that does not have much of it. The ideal choice would be a controlled amount of fiat by an honest custodian. However its been established beyond a doubt that any system with a human hand in it ends up being abused and turned into a racket. Inevitably, the 'honest custodian' ends up doing favors for those who set it up and sustain it through influence, favors, propaganda..etc and its ceases to be honest.