Quote Originally Posted by iniganja
...the gold standard makes a lot more since than money being back by thin air.
No, it doesn't. Honestly.

The value of money is decided by a process of floating: which basically allows the value of currency to fluctuate against other currency.

There is no such thing as real value. The only reason gold has value is that we give it value. As I explain to my classes: God does not cram wealth inside of gold. If we want to say shiny pieces of golden metal have value, then it has value. The same exact principle applies to little green pieces of paper.

Yes, economics is weird.