In the end your proposal for a currency based on Silver and Gold seems doomed to same flaw that you place on the other economies of the world. The crux is that of a perceived value. For US and presumably Japanese and European economies, that value is something akin to stock in the economy of the issuing country (or block of countries). The other option you propose is that we no longer put our faith in the economies of large productive nations but instead put our faith in that humankind will always place great value in precious metals. And for what reason do we value these metals now - for little more than they are pretty to look at. I tend to think that in itself is also a risk, for one day people may even prefer a side of beef to a brick of gold (no matter how much it shines).
I would like to add that I'm not well versed in the discussion of economics as I have taken only a few courses of which I remember virtually nothing. I merely think there is room for discussion about changing the basis of our currency rather than what appears to be bashing the current system.
Slashdot Mirror
In the end your proposal for a currency based on Silver and Gold seems doomed to same flaw that you place on the other economies of the world. The crux is that of a perceived value. For US and presumably Japanese and European economies, that value is something akin to stock in the economy of the issuing country (or block of countries). The other option you propose is that we no longer put our faith in the economies of large productive nations but instead put our faith in that humankind will always place great value in precious metals. And for what reason do we value these metals now - for little more than they are pretty to look at. I tend to think that in itself is also a risk, for one day people may even prefer a side of beef to a brick of gold (no matter how much it shines). I would like to add that I'm not well versed in the discussion of economics as I have taken only a few courses of which I remember virtually nothing. I merely think there is room for discussion about changing the basis of our currency rather than what appears to be bashing the current system.