Originally Posted by miceelf
Isn't gold also fiat? Why would the worth of dollars have to be measured in how much gold it can buy rather than (say) how much bread or oil, or gunpowder?
Because for whatever reason, gold has been recognized as valuable by people all around the world. Paper is just paper. Money doesn't have to be measured in terms of gold and, in fact, I don't want it to be. As much as Ron Paul shouts about gold, I don't believe he wants that, either.
Paper money can be "backed" by something substantial. Hell, we could probably have it backed by Fannie/Freddie mortgages. Right now, nothing controls the money except our trust in the Federal Reserve. I'm not an "End the Fed" crank, either. But to call for an audit of the Fed is totally legitimate. All of this is missed because Kane doesn't want you to hear it. And it's been clearly shown that Kane always gets his way.