If gold were the monetary standard, it would simply be more dear. That would preclude its industrial and commerical uses because it would become too expensive to obtain in large quantities. But it is certainly theoretically possible.
j:
"If gold were the monetary standard, it would simply be more dear. That would preclude its industrial and commerical uses because it would become too expensive to obtain in large quantities. But it is certainly theoretically possible."
If we declared a gold standard tomorrow, the price of gold would rise and the value of our existing curency would drop. As we tried to aquire more gold, that situation would only get worse, with the price of gold skyrocketing and our FRNs becoming more worthless, as they are a floating currency. We would have to, at some point, exchange FRNs for currency bearer notes like the old silver certificates. With the value of FRNs crashed, what would the exchange rate be? Would not current wealth in savings and stocks be wiped out? Would there not be a resulting economic crash of monumental proportions? I don't see how that could possibly work. Your blythe, unfounded assertion that it could be done is nothing more than that.
How about a realistic plan on achieving the changeover?