With the gold standard what happens when there is more wealth than gold? Basicly companies are making more and more money and it is all on computers. What happens when or if there is more wealth on computers then there is gold (or any particuler resource or resources) in the world?
Ok, so gold would just be valued as more and more. How would we know how much wealth is actually in existance on line or in other countries that use the dollar? Would we some how require companies to keep all their financials open all the time to government? Or would there be some kind of periodic check? Oh and who would coordinate all of it?
Does anyone see a similarity to the housing boom? Demand is high, driving prices up beyond other consumables. Is gold increasing (inflating) faster than gasoline? Interest rates are low, I can borrow money to buy gold, because gold prices are going up faster than my interest rate. If I use gold as collateral, I borrow to buy even more. This is safe because it is gold, and gold never goes down (or is that houses?)