[quote=4plexowner]john, if you read anything besides anonymous real estate blogs you would realize that gold is far more likely to be re-valued upwards
the US gold is held on the Fed’s books at a value of $42/oz – for them to balance their current books against all the worthless paper they have taken on, all they would have to do is revalue gold at $6000/oz and the books are balanced
you are also being intentionally deceptive (or maybe just uninformed) – gold was revalued from $20/oz to $35/oz – that’s over 60% INCREASE in price
human beings have been choosing gold for at least 5000 years and are currently doing so in spades – that is why gold is at or near all time highs in most currencies[/quote]
If Gold becomes the standard it will be valued as all commodities are just above the cost of production. The difference now between cost of production and its price is the fear factor. You take out the fear factor when you put the system on Gold. Without fear, Gold is only worth what it costs to get it out of the ground and refined.
Balancing the books is not necessary when you throw out an economic system and instigate a new one. You wouldn’t set up a new basis that included the garbarge from before. That is the whole point.
