The Current value of US currency (M0) is ~$5.731T. The value of M1 is ~$18.045T.
Beginning May 2020, M1 consists of (1) currency outside the U.S. Treasury, Federal Reserve Banks, and the vaults of depository institutions; (2) demand deposits at commercial banks (excluding those amounts held by depository institutions, the U.S. government, and foreign banks and official institutions) less cash items in the process of collection and Federal Reserve float; and (3) other liquid deposits, consisting of OCDs and savings deposits (including money market deposit accounts). Seasonally adjusted M1 is constructed by summing currency, demand deposits, and OCDs (before May 2020) or other liquid deposits (beginning May 2020), each seasonally adjusted separately.
The value of ALL the gold in the world as of the end of 2021, @ $1,746/oz, was ~$12.5T. The value of the world's gold in official (government) hands was ~$2.1T.
The $5.731T figure is ONLY the US. I don't have a total for all the world's currencies. Suffice it to say we would need a LOT more gold to make this work.
Money is three things, and ONLY three things. 1) It is a medium of exchange, 2) It is a store of value, and 3) It is a means of accounting. The physical form of money is irrelevant. I say again, it is IRRELEVANT.
The fact that there is more money value than gold or other things to back it is because people have faith that they can use money for one of the three things listed above. Really bad things happen when people loose faith in the value of their nation's currency.
SpyNavy
Garde la Foi, mes amis! Nous nous sommes les sauveurs de la République! Maintenant et Toujours!
(Keep the Faith, my friends! We are the saviors of the Republic! Now and Forever!)
LonePalm, le Républicain du verre cassé (The Broken Glass Republican)
Yes, gold is finite, and oil.
Chances are whatever the resources of one nation will serve as their currency, in order to remove the yoke of financial tyranny of the US dollar.
I have no clue.
The US and the West paid to stand up Ukraine against Russia. They press sanctions against Russia for answering the call to battle.
Now the regime desires to thieve Russian holdings, outright, by the US, to pay for the war. Really good racket that circles the presumptuous power of the dollar.
Seems Russia made other arrangements some time ago.
Sovereigns find a unity of resentment, and BRICS dares to compete.
Biden, stuck in the way things were, suspected more near-instant gratification and has, instead, drained nations.
You revalue the gold to some set quantity of money (hopefully after pulling a lot of it out of the system) and then you ONLY let money supply increase with the increase of physical reserves.
Based upon our issue of legal tender gold and silver coinage since 1986, we’ve actually got as much, or a bit more, face value bullion in circulation as was circulating at the time of the theft of the gold by Roosevelt.
Revalued to some value larger than current spot, it would work. Numbers would change, but the ratio of valuation would remain the same. Most of the bigwigs who carp about problems with this do so because they wouldn’t make a pile of dough on the transition and they would be severely constrained at lending because money wouldn’t be created by debt issuance and people wouldn’t be mortgaging their azzes off, they’d be able to save for serious purchases or pay a significant fraction up front.
marq