[sten]

ivedone the math in the past... there is something like $70 trillion between M1, M2, and M3 supplies (of the top of my head)

using only gold as a standard, and not a commodity basket, gold would be just under $9500 / ounce

[BobL]

“ivedone the math in the past... there is something like $70 trillion between M1, M2, and M3 supplies (of the top of my head)

using only gold as a standard, and not a commodity basket, gold would be just under $9500 / ounce”

That’s about 5 years out...so your point is?

[Para-Ord.45]

Why wouldn`t they then fractionalize it, say 1 USD = 1/8 or ounce Au ?

[Atlas Sneezed]

using only gold as a standard, and not a commodity basket, gold would be just under $9500 / ounce

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But there’s no reason not to apply the principles of fractional reserve banking. Banks don’t keep all the cash on hand, because as long as they are responsible and solvent, the depositors won’t come to cash out.

Which is the point of a gold standard: to keep the government from inflating the currency to the point that it becomes attractive to trade the handy dollars for cumbersome but more profitable gold.