[tolbiny]

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The intervention is on the force that they use to make us accept paper money. Do you think businesses would continue to accept easily-printable dollars if they weren't forced to pay taxes in them or issue paychecks in dollars? Of course not. People would trade in gold or silver. The reason they would do this is because it prevents ridiculous investments that exist at everyone else's expense. Government regulations force us to accept dollar bills as currency, even though a free market would quickly reject it. That's the intervention.

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Even if we eliminated paper money right now, it's silly to believe that money wouldn't reemerge in a rational market. Do you honestly think people are going to go to the trouble of storing all of their wealth in material goods? "Tickets" to represent claims on goods are just easier to use. In a free market, someone would start a business producing money for people to use in lieu of goods and it would gain traction because it's so much easier.

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The point being that there is a huge difference between a gold (or other physical entity) backed ticket and a ticket that is backed gby the "full faith and credit" of a government.