Comment: Prices Denominated In Paper Money vs Denomination By Weight

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Prices Denominated In Paper Money vs Denomination By Weight

Paper money only has real value, when it is redeemable or convertible to assets that hold real value. That's why the founders mandated using Gold/Silver/Copper as money.

Please allow me to write an example of a price by weight:

Most of the whole world is now using oil and petroleum products, the oil is measured and priced in 42 gallon barrels:

http://money.cnn.com/data/commodities/

Crude oil is roughly $98 per barrel, how much Silver/Gold, by weight, would be needed on a straight trade for oil?

At $30.00 per ounce Silver a little over 3 ounces would be fair,
or at $1610 per ounce Gold 16.77 barrels could be purchased for 1 ounce.

My point is; I think the founders wanted to "PRICE" everything in weights of Gold/Silver/Copper, so central bankers couldn't create the terrible economic condition, the world is now in by creating paper money out of thin air. Please remember there was "NO" inflation under the Gold/Silver/Copper standard !

beesting