[Iris7]

Again, money is credit.

Later in my post I tried to deal with your objections. The problem is that the modern system of money began because it allows manipulation of money supply growth. The 19th Century U.S. gold standard came under intolerable political pressure and was scrapped for the Federal Reserve central bank system. Recollect William Jennings Bryan "Cross of Gold" speech. The modern "liberals" arose in that era and forced the abandonment of cold base money. They then found the joys of "dirigisme" irresistible.

The English began the modern world by basing money on government credit with the Bank of England. Probably the biggest reason the Stuart Monarchy was deposed and the Battenburgs begun is to be found in the Whig Magnate class' need for less expensive bank loans. Less expensive borrowing costs made industrialization possible.

The situation is unfortunate as a catastrophic chaotic collapse of dollar based credit is eventually certain. In the mean time various arbitrage plays are possible. Devil take the hindmost. Sigh.

[RipSawyer]

Again, money is credit.
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At any rate when the price of gold was pegged at $32.00 per ounce then 100 ounces of gold would buy a new car, the same 100 ounces of gold would buy an even better new car today. The 3200 dollars would buy a ten year old clunker today.