Are you talking about Libya’s so called future gold back currency?

The US hasn’t had a gold backed currency since FDr confiscated all of the personal owned gold. You’re not going to be able to redistribute that, without people grabbing half of it in transit.

A piece of paper entitling me to an ounce of gold is a contract.

That doesn’t mean anything. A promise by the banks that they have the gold on hand for you, isn’t real. It looks more secure than fiat currency, but it is just another form of fiat currency.

Only physically owning the gold would guarantee 1 to 1 conversion, but since that is impractical most people cannot do it. They don’t have the secured vaults to keep the precious metals safe, for one thing, and not everyone can use Switzerland to keep their stuff safe.

Not hoarding; money = a one to one relationship between currency and the gold/precious metals. That is the common sense way to eliminate inflation and a lot of other government caused problems/disasters.

A piece of paper entitling me to an ounce of gold is a contract.

Who honors a contract is one of those ongoing things the free market sorts out. It is not the government.

For example, it doesn’t matter if you hoard 3 billion in British pounds. The Brits just print up more pounds and suddenly your 3 billion has been wealth redistributed without you noticing.

As for keeping stuff in banks, ever wonder why certain rich people and business keep their funds in Switzerland or off shore accounts?

Ever wonder why? And it’s not merely due to tax issues.

True and also that precious metals are a hedge against government paper. But ammunition (and the will to use it), widely dispersed amongst the citizenry is the ultimate currency of liberty.

excellent history lesson.

Tonawanda Says:
September 29th, 2015 at 4:53 pm
What Has Government Done To Our Money by Rothbard advocates getting government out of the money business altogether.
…

Look at Greece: barter and electronic pseudo-currencies rampant.

One thing that led to the unparalleled progress and prosperity of the West was an honest and dependable banking system.

Oh well, it was nice while it lasted.

RobC Says:
September 29th, 2015 at 1:48 pm
I thought the big reason that cash will never disappear is that it makes bribing politicians easier…

No one does that anymore; they just donate to their PACs and Foundations.

He makes it simple for folks like me by starting with barter and working his way up.

The free market will create the most efficient form of money (probably gold, silver and other precious metals).

When money is again a commodity rather than a government promise, the inevitable political manipulations are removed to the benefit of every one except the politicians and their buddies.

Rothbard deals with the objections thoroughly.

But of course he cannot deal with the fact that there is no political advantage or prospect of getting government out of money, just the prospect of betterment for mankind.

The problem, as folks have likely guessed, is that the ratcheting continues. They charge a little bit more for protecting your money. Break-ins increase and authorites get stricter on enforcing the laws on what you can do to protect it yourself. All quite slowly, and all for your own good.

Those who have been through periods of societal breakdown (as in Latin America at times) say that your best protection is a network of people you can trust. Trust will be the most valuable commodity.