The reason no one uses backed currency is because the World Bank is in charge.  But don't worry.  The Federal reserve is at the helm and they are there to insure "stability", right?  You notice how well they do their job?  You see how "stable" everything is?

  Irwin, I know "you don't have too", but there is a documentary film called "The Money Masters".  You can watch it for free here: http://video.google.com/videosearch?q=money+masters&hl=en&sitesearch=

  The producers don't think we need gold backing, like you.  I think you will find it interesting.

No one uses backed currency because it is a bad, outdated idea. Period.

You need 4 Trillion dollars in metals sitting around, instead of being used for more important things like, well, EVERYTHING.

Excuse me, but I already posted extensively about WHY it is not even possible anymore. There is just not enough of the precious or even common metals to pack it all up in a vault and hold it off an already extremely tight market. Just because the argument is ignored doesn't mean it was not made.

Ever heard of the Panic of 1893?

"The Panic of 1893 was a serious economic depression in the United States and began in 1893. This panic was an extension of the Panic of 1873, and like that earlier crash, was caused by railroad overbuilding and shaky railroad financing which set off a series of bank failures. Compounding market overbuilding and a railroad bubble was a run on the gold supply and a policy of using both gold and silver metals as a peg for the US Dollar value. The Panic of 1893 was the worst economic crisis to hit the nation in its history to that point and some argue as bad as the Great Depression of the 1930s.

People attempted to redeem silver notes for gold; ultimately the statutory limit for the minimum amount of gold in federal reserves was reached and U.S. notes could no longer be successfully redeemed for gold."

So, goldbacked currency is not the "fortress" claimed here.


http://en.wikipedia.org/wiki/Panic_of_1893

Now he gets angry and goes to the "little man." He promises to side track on the "conspiratorial forces" rather than answer the practical problems.

1) If you want money backed by any form of metal, you must horde enough for a multi-trillion dollar economy.
2) It is questionable whether enough metals to back even ONE such an economy is even on planet earth.
3) Pulling all those metals off the market to throw in a vault will cause prices to skyrocket, rippling through out the global economy, crippling manufacturing on every level.
4) It doesn't matter what evil forces you blame for the run on gold, it remains that any metal-backed currency is vulnerable to runs on said metals.

These four reasons won't be erased by claims of dark forces and evil conspiracies.