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.
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.