The dollar is like a share of stock in the economy. As long as the supply of stock matches the increase in the economy, the price is stable (neglecting outside influences). But if you print more stock certificates than the increase in the economy, then the value of the stock falls.
Do we value the size of the goods and services in our economy based on how much gold the country has? No. Economic expansion has and will continue to outstrip any increase in the amount of physical gold our country has. The physical dollar is only a convenient method of exchange. The same with a debit card. It is a ledger to ledger exchange. One key to fixing the problem is to have strict rules governing the expansion of the currency, debt and how much is spent on money for nothing programs (welfare type programs).
Economic expansion has and will continue to outstrip any increase in the amount of physical gold our country has.
First, let me state history tells us gold and silver has always had good stable value. In Roman times, an once of gold was said to buy a very good suit of clothes. Today, the same is true. Contrary to this, paper denominations always end up being worthless. I have a lot of pre-1984 Mexican currency, which is absolutely worthless today. If you want a very good history of currency watch "The Money Masters" by Bill Still. I watched it back in the 1990s when it first came out. It's an incredible documentary.
Also, the fractional reserve banking system and its exorbitant inflation tends to outstrip, as you say, any increase in the amount of physical gold our country has. This is always the case of a Ponzi scheme as it accelerates and begins to spiral out of control. Let's look at one aspect of the fractional reserve banking system that reveals it for what it actually is:
I'll use a calculation from the year 2021 I did.
Imagine if just one penny had been borrowed at 6 percent compound interest in the year Jesus of Nazareth was born and no payments were made, how much would be owed today in year 2021?
The formula for annual compound interest is: FV = PV(1 + i)n where PV is the present value $0.01, i is the interest of 6% and n is the number of years- 2021. FV is the future value of the debt owed in the year 2021.
We substitute the amounts in the equation thus:
(.01) x (1.06)2021 = 1.39 x 1049 dollars (1.39 followed by 49 zeroes)
Let's determine how much money this is, shall we?
If we think of it in terms of gold, divide the amount by the current price of gold ($1857.82/oz) we get:
7.48 x 1045 troy ounces of gold
How much gold is that?
There are 14.6 troy ounces in a pound and 1,205.6 pounds in a cubic foot of gold, we get:
4.25 x 1041 cubic feet of gold
To imagine that much gold, we need to think in terms of astronomy. The sun has a diameter of 865,000 miles. Its volume is therefore 4.99 x 1028 cubic feet. Dividing into the above figure gives us:
1.21 x 1022 solid gold suns
If we assume that an average galaxy like the Milky Way contains one billion stars like the sun, we get:
1.21 x 1013 galaxies of a billion solid gold suns!!!
All this from a single penny borrowed in the time of Christ!
Now you know why compound interest as the most remarkable thing in the universe. Can you now see how the world's debt has become a "mere" 250 trillion dollars?
Now define usury after trying to wrap your mind around this. (.01) x (1.06)2021 = $(1.39 x 1049 ) = 1.21 x 1013 galaxies of a billion solid gold suns
You are almost correct. It is like stock! However, it is more like it then you let on. If many people want to buy Stock or $ the price goes up. If nobody wants it or even is selling the stock or $ they have the price goes down. We are near where nobody in the world wants any more Dollars indicated as soon as gov auctions of dept fails. We are near. Nobody wants to own stock in a company that is over leveraged and can co BK any day. Russia is almost out of $ and has replaced it with gold. How much gold China has nobody really knows. How much gold the USA has you will only know if they agree to an audit. China has been playing the long game, buying $ with our money we give them for trinkets made in China and soon they will sell (dump) all the $ they have. This spells crash. Winning the war without bullets.
As messed up as we are, the rest of the world is in even worse shape. Most of Europe is essentially bankrupt; China has been papering over their massive money problems for years and without $500B a year from the US in trade surplus they are in even worse shape. Russia is marginally stable as far as I can tell. The bad guys want to do a great reset. That basically means that they take a crap load of money and assets from the middle class and start the whole ponzi scheme over again.
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