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In point of fact valuation of currencies, whether beads, wampum, abalone shells, silver, gold or greenbacks is now and has always been a human social/economic issue.

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Yes, gold has no "inherent" value -- it's only as valuable as people believe.

But it seems the advantage of gold over paper -- and the key difference -- is that you can't just print more gold. You can't control it with a decision of the Fed.

Thus, gold-standardized money would seem to be more subject to outright market forces and (far) less subject to control by government. That would seem to lead to *more* volatility in turbulent times, not less, wouldn't it? Wasn't it to combat this uncontrollable volatility in the money supply that was (ostensibly at least) the purpose of the creation of the Fed in the first place?

I confess I know next to nothing about these things and I am just expressing my thoughts here in the hope that someone can point me the right direction!


Regards,
-Seraphim
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