There is a belief that money can be replaced by fiat, so long as the value of the fiat is kept stable by responsible government. That is an error.
The only way that the stability of fiat can be measured is by Gold – so why not use Gold directly by allowing it to circulate? If it is because of the consideration that there is not sufficient Gold, then there is not sufficient means to keep the value of the fiat stable. Thus, the fiat must eventually fail anyway.
No, the choice is either Gold, or it is fiat with an unstable value – pseudo money. Fiat that is doomed to eventually fail with the loss of society’s institutions and accumulated wealth.
But Gold performs a vigorous role beyond even the irreplaceability of its marketplace measure of value; Gold is the mechanism by which the market establishes the rate of interest.
Why do we tolerate central banks when their only justification is to manipulate interest rates, with all the damage that entails? Gold does the job instantly, easily and with a seamless conformity to the wishes of the market.
Central bank policies are artificial and backed by force; Gold is natural and incorporates the free wishes of all market participants – everyone. Gold is the ultimate People Power.