"Do you think that gold could support the above?" What specifically are you referring to?
If the money supply were not able to expand, how would a company with little money and good credit expand? They couldn't sell gold bonds. How would a consumer with the same attributes, purchase anything? Here I am not talking about companies, nor people with 30 credit cards, and not enough wealth to buy a postage stamp.
"Would our economy be what it is if not for a fiat currency?" No. I think it would be far more stable and sustainable in the long term. Market corrections would be fast and short. Not proven. Our GDP wouldn't be 70% credit driven consumption and we wouldn't be on the verge of stagflation. Agreed. The government would be limited to a realistic budget. A budget without corporate welfare. A budget without pork barreling and shrouded ear-marks. Personally, I would take great pleasure in strangling every member of Congress, and his family to the first degree, who voted to increase the national debt. Your retirement funds would retain value over time. Remember what you said about monarchs debasing gold currency.
I think you are referring to the years 1979/80. Gold prices increased during the 70's after the dollar became completely fiat. Gold price was driven up as a reaction to the huge inflation and political turmoil of those years, until Volker forced a corrective recession (The only people who paid were the middle class and the poorest.) with high short term interest rates and individuals and banks sold off much of their gold. Oil prices, along with most other commodities, spiked at the same time. As far as oil prices are concerned, in the 1950's, the 'posted' price for oil was about $1.18 a barrel. (gasoline was under twenty cents a gallon). This 'posted price' was for royalty payments to syphilitic Arab kings, (Idris, Ibn Saud), and shieks. The actual trading price was about 50 cents.
Gold is not a good way to make a profit, its a way to preserve purchasing power because its the most ideal natural means of exchange, as proven by thousands of years of human history. Thousands of years of history have proven that the vast majority of people could not move out of poverty.
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Don't feel like editing this now, but I am sure that you get the idea. Bottoms up!