The crux is you cannot double the amount of gold out there this week. But you can double redouble and redouble again the number of dollars. I mean , ya could. If ya had to, to pay off debts.
But gold is kinda slow …[/quote]
If we’re going to engage in useless hypotheticals, I might as well point out that, since the Fed has control over the amount of dollars out there, the Fed could also wipe out the economy by recalling all dollars and taking the monetary base to zero.
Not that it would do either of those things.
The essential difference between gold and fiat is that we have a bunch of academics in control over fiat money supply, doing what they believe is best for the economy. We have no control over the supply of gold. There’s no reason to believe that gold is in any way better than fiat, unless you think that academics in charge of the Fed are wrong more than 50% of the time.
