Only argument a gold standard is that it could be so easily manipulated by "the elites" because your average person can't even afford to get their own gold right now. Do you know who is buying gold, and a lot of it? George Soros. Get the picture?
As for the "not enough of it:"
1. Before 1933 you could redeem $20 for an ounce of gold. Now it costs $1700 yet you cannot redeem your cash for gold at a bank. That should tell your buddy that overexpansion of the money supply is the problem itself, not the amount of gold in the world.
2. If there really is "not enough gold," it's still not a problem. While I don't support paper money, they could peg the dollar at 1 ozt gold for $10,000, 1 ozt silver for $1000, etc. That's why most here and Ron Paul himself advocate competing currencies, not necessarily a gold standard. There would be gold, silver, copper, other precious metals, bitcoins, paper, digits, and even plain old fashioned bartering for goods.
Simple Facts and Plain Arguments
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