getting back to the gold standard?
Everybody likes to write books and articles about the impending “crash” of the dollar. However, I’ve not seen much writing about what happens when (and how) we get back to a GOLD STANDARD. We talked about this at work the other day around the water cooler and we were just talking about how literally everything would have to be devalued because there isn’t enough gold around to cover the “dollars” currently in circulation. So in other words, everything from the price of a car, to salary cuts, to the price of homes, etc would HAVE to come down substantially. The next question of course became well if we all get salary cuts (again, because there isn’t enough gold in reserves to cover our current salaries), what happens to existing loans/mortgages/etc that were made in the years where we were not on a gold standard (ie. loans/mortgages initiated between 1972 and 201*)?
Anyway, my question is this —-> Is there any information/writing/etc about what would happen after a “crash” when things eventually stabilize and we get back to a gold standard? Please provide a reference so I can read more about this. Thank you.
In other words —-> how do we get back to a gold standard, and HOW does this affect our existing assets, salaries, debts, etc that are all based on FIAT CURRENCY.
Thanks for the detailed reply. I’d still like to get more direct info on the original question —> How does a country, the USA or whoever, revert BACK to the gold standard when they’ve had decades to century long under system of Fiat currency.
Specifically, what would the effect be on salaries, outstanding loans/mortgages, food prices, etc. that to date have all be based on the “good faith and trust” of the country instead of gold.