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nanak was required to post the same article a second time because:

a) the first time didn't seem to get enough responses
b) the first time didn't have the headline it deserved
c) I need my name in headlines
d) all of the above

Most folks are not into economic logic, because it is intangible, complex and time consuming. Even economists have short attention spans for economic theories of others. The "mind cliques" here on FR regularly issue "talibanesque" responses to most anything that causes them to read economic logic that hurts their mind. It is ironic that conservative economic theory is so widely trashed on a conservative forum. But, the same thing happened when some people tried to call attention to the stock market bubble. Conservative social, conservative moral, conservative political, conservative patriotic and conservative economic thinking may not always be best, but it has worked well. There is absolutely nothing wrong with your article - except the "mind cliques" want you to ignore classical economic theory and accept their liberal logic.

This whole argument of fiat verses tangible "money" reminds me of the childhood story, Three Little Pigs." Except in real life, the wolf is trying to explain to Practical Pig why he should build his house out of straw like his lazy party loving consumption oriented brothers.

This is the shabby secret of the welfare statists' tirades against gold. Deficit spending is simply a scheme for the "hidden" confiscation of wealth

My father was left a modest dollar denominated monthly annuity by his father. After a long life, the monthly amount, adjusted for inflation, was 5% of what it was in the beginning.

If you look at a long term chart of the dollar, it is down, down, down.

I think the competitive modern electronic capital markets have made the gold standard obsolete. New inflationary policies are met with instantaneous worldwide Treasury bond selling. Anyone can easily convert his dollars to gold (or another financial asset) whenever he likes. The discipline of gold is there, in a more evolved form.