Here is another one to think about- now regular people own mutual funds in their retirement accounts. Everything is traded electonicaly.
Where are all those stock ownership certificates?
legally, you are issued a certificate of ownership.
Where are they all stored?
It's rather like the bank forclosures where 1 in 15 people only had to go to court and say, morgage, what morgage, I don't own you a dime, let me see your signature.
The banks could not produce proof, end of story. Everything had been lost because so much was bundled, sold, and carelessly documented.
and yes the banks own stock, manipulate the market and profit either way- look at gs.
what do you expect?
What would work better? look at iceland during and after thier currency default, the people who suffered the most were not the bankers.
And we are not iceland, we have lots of resources that others would like to get & we owe money to emerging asian economies, who will not be as forgiving as the europeans.
If we just let the whole thing collapse, we will get invaded.
And then who suffers?
The US has gone though some very bad periods, and recovered, the civil war, and then ww2- my mother who recently passed told me that the twin towers were more firghtening than pearl harbor.
Whenever I think my life is tough, I think about my ancestors, who went through very much more, i'm named for a woman who literally walked accross the great plains at the age of 8. American is where it is because of the sacrifice of many, and it is not without possibility of redemption.
i've been a silversmith for the last 20 years, and my take on precious metals is not what most people's is, you can't eat it, it's not all that easy to sell or trade, and if you want to exhange it for something, it isn't always that easy. The other person has to think they are getting something of value, and you have to keep them from stealing it from you.
A gold standard has it's drawbacks, countries with a lot of gold in the ground kept getting invaded, for instance.
Theft is a problem. It would have been far simpler for the US to stay on the gold standard, and a lot has been lost by abandoning it, but going back to it now also has it's issues.
Cutting corners won't get us into a better future, which is what everone really wants.