posted on Dec, 6 2010 @ 08:46 AM
I don't think people are quite getting the problem maybe. The problem is that there is no gold standard, which means, as we are all very aware, that
the pound sterling has no fixed value. The value is now based on "Public Trust" which is basically how much people on average decide it's worth.
The problem is that if you have £5000 sitting in the bank, the actual amount in the bank is totally variable, and therefore you have no absolute
security. If we could (which less than 100 years ago was possible) exchange our notes (which in reality is just a receipt) for gold then the pound
value will be decided on the stable gold standard.
Of course you can always buy gold with the money we have today, but that isn't the point, the value of the pound is still not stable.
On a personal note, I believe the change from gold standard to public trust valuation happened to give the government complete control over their
people's finances, and therefore controlling the people themselves if and when a crisis may occur (whether a deliberate one or not). Remember, the
love of money is the root of all evil.