alas, this is what happens when everything is backed by debts, when some only get richer when others must pile on debts. The entire world economy is an illusion... debt based economies = the top sucks the bottom. The savings rate is now zero % in the US. The problem is that the Top today has nothing anymore and this is why "they" came up with the new bankruptcy bill. Soon slavery at its finest will take away from you your dearest American dream.
Yes, returning to the gold standard will be costly, not because of the gold standard itself but the money printing press that is inflating everything. Truth is always painful anyway. Eventually we'll be forced to embrace US CONSTITUTIONAL MONEY AGAIN one way or another... the the day we do so, it might come from "We The People", who are fed up with all these booms/busts/recessions/depressions... YEAH, ECONOMY ALWAYS COMES BACK... AFTER THE BUST. HERE WE GO AGAIN?
THE ARCHITECT OF OUR CURRENT MONETARY SYSTEM: "Should government refrain from regulation (taxation), the worthlessness of the money becomes apparent and the fraud can no longer be concealed." -- John Maynard Keynes, "Consequences of Peace." STAY UPDATED:
WORLD GREAT CRASH ALERT
If you're living in NYC and wish to volunteer for the cause of sound money, please get in touch with me.
this is what happens when everything is backed by debts Debt is merely a function of demand for goods & services; money supply is merely a function of the debt issued to supply this demand. Who's to say that a zero based savings economy isn't the next wave in the evolution of commercial activity?
The key is, has been, and will always be, inflation. Keep inflation in check, and wealth has to be created via new goods and services. Look at the construction industry: everyone is focusing on the rise in real estate prices, but seemingly ignoring the transformation of many previously blighted areas.