When systems break down
Richard Cook labels Ron Paul’s proposal for currency competition (and a return to commodity currencies) unworkable, principally because Cook doesn’t believe gold and silver could support all the trade that “needs” to be conducted.
Unfortunately, there is not enough gold and silver in existence to fund the monetary requirements of modern economies. Trying to restore a metallic currency that never really existed in sufficient quantity since this nation was founded would only replace control of the economy by the banking system with control by gold and silver speculators.
Why wouldn’t there be “enough” gold and silver? All that would have to happen is that the gold and silver price would rise sufficiently to cover all trade in the economy. And we wouldn’t need to haul bags of gold around. A currency backed by gold would perform exactly like today’s currency except that it would be non-inflationary (or deflationary). We could measure prices in micrograms of gold if we had to.
The problem with any fiat currency solution (be it Ellen Brown’s or Richard Cook’s) is that it relies on the integrity of the central govt agency issuing the paper currency. It relies on you trusting govt (however small. however local that govt may seem to be).
But govt is the very corrupt, self-serving, monopolistic, unresponsive institution that got us into this mess in the first place!
Gold and silver are God’s money because they don’t require govt to enforce it. They are real money - the anarchist’s money. Money that can self-regulate, self-insure, self-monitor. Let the market decide what money it wants and it will return to gold.