A Case Against a Gold Backed Economy

I was reading Bruce Schneier’s block and came across an interesting story…

http://www.commodityonline.com/news/Swiss-banks-have-no-space-left-for-gold!-19698-3-1.html

Swiss banks are running out of space to put their gold. This is a larger issue than many would give it credit for since gold does take a lot of space and if you have a large quantity of it in one area you need to really secure it. I’m not talking just putting more guards around it but you need to fully secure it since criminals will be trying to steal that treasure trove of precious metals.

It’s an interesting thing to consider especially for those who want us to return to a gold based economy. I’ll be the first to admit that I don’t know enough about economics to determine if backing our money with gold is a good idea. I will say it seems smart to back your money with something of value though. And if you set each denomination of money to be valued a specific denomination of gold it would prevent stupidity like a government printing up $1 trillion to give away to people who helped cause a major economic recession. I’m just saying.

Source: http://www.schneier.com/blog/archives/2009/07/swiss_security.html

One thought on “A Case Against a Gold Backed Economy”

  1. Simply solved…

    You simply build a new facility. And in order to make it EXTRA secure. You take a large quantity of gold and you melt and pour it into single huge slabs. It becomes part of the building. Then you lay a glass plate floor atop of the gold floor. Likewise, do the same with walls. Solid gold pours…

    Essentially you have a building made of solid gold, and in which every block is so huge that it cannot be moved even by a couple of 18 wheelers. Essentially limiting theft. You cover in bullet proof plate glass.

    And essentially you have a new 7th wonder of the modern world. It becomes a tourist hotspot. The golden bank of Switzerland.

    Problem solved…

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