If the Gold standard came back ...

[Richard Tanner]

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However one has the ability to be created out of thin air, and one does not. Even if they only have value for the same reason, seems like one has a clear edge here.

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Correct, one does have the clear edge of being inexhaustable.

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Both are inexhaustible. Do you see why?

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Wait, you mean to tell me that when I trade an ounce of gold for some other stuff, it doesn't instantly vanish into thin air? I thought conservation of mass didn't apply to money.

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Cute, but the point he (whomever Boro was replying too) was correct. We don't get to play both sides. We trade some gold for food, eat the food and no longer have the gold. On a larger scale, a government uses some money to fund a war, they can't use more then the amount of gold they have (LDO).

On a world scale gold can't be exhausted, but for one particular group it certainly can, which I'm assuming was the point he was making.

Not that any of that is bad, maybe having tighter restrictions on money and not being able to simply print more might encourage fiscal responsibility. Still, his point is a good one.

Cody