As witnessed over the last three hundred years the scam of incrementally morphing from Gold, though to paper backed by Gold, through to paper partially backed by Gold, through to government issued legal tender redeemable for nothing whatsoever, can take a long time for people to see through.
This should not be misunderstood to imagine that the same situation will work in reverse and that government issued paper will be all fine again as long as we return to the last step that we were at – backing it with a little bit of Gold.
Once legal tender has collapsed (along with the entire middle class) it is natural that people will then be severely mistrustful of anything less than 100% monetary metal. Confidence in any paper printed by the government will have vanished.
Confidence in legal tender came very gradually, one little step at a time, one generation at a time. Do not imagine that when lost it can be recovered by moving back a few little steps. Do not imagine that the backing of a little bit of gold will be sufficient. Once confidence in legal tender falls into doubt it will collapse utterly and overnight.
Not only would a 100% Gold Standard be the easiest and most credible to introduce, it is the only monetary standard that will keep governments from again destroying the world’s liberty, prosperity and peace. A 100% Gold Standard means that any paper issued by governments must be 100% redeemable for Gold – on the spot.
As the first step toward freedom was said to be the separation of the State from the church, so the second must be the separation of the State from the money. The world desperately needs a free market in money. Only honest money, Gold, can ensure that civilization has a future.