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Entry: Ron Paul: It's Payback Time Link: http://www.takimag.com/site/article/ron_paul_its_payback_time#11175 Post contents: <<Our money should be backed by all goods and services>> How do you store all goods and services in a vault? THAT is the job of banks, to store stuff in vaults. Gold is a commonly agreed upon representation of all goods and services that can be stored in a vault by a bank. An ounce of gold represents some amount of goods and services, and a bank note represents an ounce of gold. THAT is the gold standard, boiled down. Currency is a natural product of civilization, and it is not to be manufactured out of thin air, something a gold standard prevents - mining gold is hard work. It is quite possible that instead of gold, oil could be used, but it makes banking much more difficult, as barrels of oil are much more difficult to store in vaults than bars and coins of gold. Besides, all those Arabs prefer gold over oil anyway, so what's the point? Sent at: 2008 05 15