[proxy_user]

Maybe because in modern society, the bulk of the economic GDP is services, not physical goods?

Out vast wealth is based on the knowledge of our workers. With modern technology, physical goods are of very little value. Probably 50 million farmers, and 50 million factory workers, could produce all the food and manufactured goods the world needs. The real value is in medical services, legal services, and entertainment.

[BenLurkin]

You make a good point but there still is no reason why our money should not be backed with hard assets, is there?

[Clemenza]

Out vast wealth is based on the knowledge of our workers. With modern technology, physical goods are of very little value. Probably 50 million farmers, and 50 million factory workers, could produce all the food and manufactured goods the world needs.

Bears repeating.

[JudgemAll]

legal services, and entertainment.

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These are not real value services to me, just a shine like gold as a matter of fact. They all tend to go up in value as the economy depresses.

Given India's future booming economy, some people are saying there will not be enough gold for a mere bracelet for an Hindu woman, thus the price of gold could end up skyrockting once these economies rise to our levels.

Aside from that, contrary to the Paltinum family, Gold lacks in industry application utility, except that it's a metal that does not rust and sometimes used in computers and small medical prostesis.

[bert]

.....Out vast wealth is based on the knowledge of our workers......

Perhaps our vast wealth is irrelevant to most of the world that worries about the impending doom in France and resultant failure of the economic system that creates wealth with no intrinsic value..

[RightWhale]

The financial industry is the true source of wealth since Adam Smith's already obsolete Wealth rolled off the presses over a century ago. That industry is based on collateral, which is mainly recorded property deeds.