[fspeech]

Price of a commodity metal can do whatever they want without causing a big problem. It is just a resource allocation signal. However if you base your currency value on it suddenly you are forcing debtors into bankruptcies if the value shoots up. Credit relationships aka investments are what make an economy run and grow, not some arbitrary commodity price.

[drivebyhooting]

Debtors who roll their loans also go bankrupt when the fed raises interest rates. Rolling loans is par for the course for many capital intensive businesses. This is because in a low interest rate environment if you act prudently you’ll get outcompeted.

[immibis]

Fed interest rates don't fluctuate anywhere close to gold prices.

[OutOfHere]

You're just so used to a debt fueled economy that you can't think of it being any other way. That is the problem though in that 99 times out of 100, debt goes rogue in a runaway sense and blows up the system. It is a time bom.

In essence, debt doesn't need saving from the system; it's the system that needs saving from debt.

[bethekidyouwant]

An economy that can be debt based is going to out perform yours nine years out of 10