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Gold backed currencies 

By: Zimbler0 in 6TH POPE | Recommend this post (1)
Tue, 22 Aug 23 1:55 AM | 21 view(s)
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I'm starting to wonder . . . if a 'gold backed currency' can actually work?

Lets imagine . . if we can . . that 'We' create a gold backed currency called 'GloboCreds' which will then become the planetary reserve currency and that it is instituted and actually works . . for a while.

What happens if the global gold mining industry hits a dry spell and the supply of gold does not keep pace with the need to have more of it to back more currency as the planets population increases, and various countries increase their GDP's etc.etc.?

Or what might happen if all of a sudden there is a dramatic increase in gold production - far outstripping the needs for 'more currency' and the needs for 'more jewelry'?

Zim.




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