Comment Re:Correct, but also incorrect (Score 3, Interesting) 643
You've created a strawman, attributed it to "they" and seem to be completely oblivious to the actual argument, and certainly nobody say there would be "no problems", they say it would constrain the government to only spend money that the country actually has right now.
When money is backed by something physical it prevents the government from spending more than it has by printing (or adding ten zeros) to its bank account whenever it wants, therefore devaluing the money that is already in existence.
You can't print gold so the government has to try a lot harder to spend money it doesn't actually have.
That's the real point of a hard money currency system, the fact that you hear gold (and silver) all the time is that it's just a convenient, historic store of wealth, if there was something more convenient the argument would be made for that.
Also you conveniently leave out the fact that it was while on the gold standard that the US, the UK and France became world powers, and once they went to fiat currencies became mired in debt and devaluation and lost their prosperity and declined.
It's not about money, it's about an inbuilt restriction to preventing politicians writing blank cheques until the country is broke, like most western countries are - as we see the beginnings of with Greece, Ireland, the UK and soon The US if it doesn't get its spending under control and cut the services it can't afford.
Finally you make it out like the current Fiat money system has proved itself superior, yet every single fiat currency in history has imploded at around 50 years due to unrelenting printing. You do realise it's only been implemented in the US for 38 years and that government spending has been increasing exponentially over that time compared to revenue? Do you think that can continue forever? Or do you think they'll get to a point and say, that's enough spending?