I've been pondering this question for a while now . . . and on the theoretical economic scale of things it's definitely above my pay-grade.
We hear talk all the time in gold circles about our "debt" based global monetary system and I do understand about how that works with fractional reserve banking, lending money into existence and the fact that credit has to keep expanding. It's a trap.
But what other viable systems are there?
A couple of questions for the GIM economic scholars . . .
1) What was the basis of the global money system before the Fed and Bretton Woods? I understand there was the international gold standard but how did it differ from today in terms of credit issuance? It's said that America from the 1860's to the early 1900's was it's most prosperous and productive - when gold and silver literally were money. Was this due to the type of monetary system then or the fact that the Fed gov't was tiny and there was no income tax or huge federal debt burdens so people kept all of their earnings (nice).
2) Would that system be better or worse would it be today? Is it practical for today? Would it be overwhelmed by the complexities of today's society and banking expectations.
3) Assuming that all FIAT currencies are headed much lower or to zero, are TPTB simply going to suddenly hit the monetary reset button with a global currency? Is that really practical? It's not something they could spring on the world too easily. How would the Banksters not lose too? How can they re-back currencies without using gold and sending the gold price far higher?
I'm just trying to imagine what things might be like even beyond my life time, say another 30 or 40 years from now. What kind of financial world do our kids have to look forward to? Will it get righted eventually?