[maratd]

> So why would they take a fiction over a real shirt that that gives them real value?

Ok, relax, I'm a fan of fiat currency as much as anyone, but your argument is a bit off.

Most people who argue for a gold standard aren't debating some innate worth of money. They're generally arguing that a backed currency restricts the government's ability to simply print money and create out of control inflation, which has actually happened many times.

My response to that would be that our democratic system has created a sufficient dis-incentive to do that and the fact that we haven't yet is sufficient proof that it works.

That said, I try not to keep my assets too liquid. Oh well =)

[xrange]

>government's ability to simply print money and create out of control inflation, which has actually happened many times.

...I suppose that it doesn't even have to be out-of-control for it to have a fairly dramatic effect...

http://observationsandnotes.blogspot.com/2011/04/100-year-de...

[maratd]

See that wonderful spike upward in the chart you're quoting? That would be the Great Depression.

I assure you, inflation is the lesser of two evils. Deflation is much, much worse.