it doesn't matter how much gold there is it's all relative, it's just better than fiat based on nothing. You can use dollars to buy gold but the dollars are really IOUs that nations could use to get their gold back from where it was stored, that's what convertibility means here
It is not relative if it’s un-exchangeable. Then it’s no better than fiat. All it does is extend credit based on faith that is not backed up by real material. You’re just exchanging trust in one thing for another.
There was no convertibility to gold since the 1870s. And there simply isn’t enough gold in the world to conduct global trade in any meaningful scale.
it doesn't matter how much gold there is it's all relative, it's just better than fiat based on nothing. You can use dollars to buy gold but the dollars are really IOUs that nations could use to get their gold back from where it was stored, that's what convertibility means here
It is not relative if it’s un-exchangeable. Then it’s no better than fiat. All it does is extend credit based on faith that is not backed up by real material. You’re just exchanging trust in one thing for another.