Oh, what a disappointment.

I'm a far-left-wing socialist, but even I understand that money cannot be based on a commodity like gold.

A commodity-based economy is naturally deflationary (until we hit the collapse of course, but that's still a few years in the future, and then there won't be much banking anyway.)

But hoarding a deflationary currency is very often a good strategy. You don't have to do anything with your currency, or invest it - it naturally gains value as fast as the economy does.

So new projects and investments don't happen. There's no good reason to invest money and assume risk in a deflationary currency.

And that's just the start.

As a simple thought experiment, imagine the world was on the gold standard and then a huge gold discovery happened equal to all the gold in the world. Suddenly that country would own more than half of all the money, and the money of all the other humans in the world would be worth half as much.

Of course, such a huge gold discovery is not likely but it would still mean that the countries with gold mines like China, Australia, Russia or Canada would have a permanent, massive and unbeatable advantage.

I feel very, very weird defending capitalist economics this way, but floating currencies are unavoidable and not the source of our problems. I'll stop here before I write ten more pages.

Have a good weekend!