Well the difference is that if you have a compelte collapse fo the currency you can still barter and trade with hard assets and yes, gold, silver, gems will all be highly prized but if it gets bad enough nothing becomes more valuable than food and water.
The point however is that nothing has value until people decide it does, and then whatever they decide has value has the value they agree to including paper money.
Really it’s all about how stable the economy and currency are not what you’re backing it with.
With respect to the last that would be true for specie, however, with fiat currency a different dynamic is introduced and that is trust, not in what you are exchanging but in what is insisting that this paper stuff is actually money, the government and the banks.
With specie trust only matters when addressing the perceived quality of minting.
There can indeed be a collapse of trust even while everything else is humming along.
This is why I’ve stated that the only thing keeping the US Dollar up is the Petrodollar … for while it stands there is a reason, a cause, for those outside of the United States to want Dollars besides trust (when any rational outside observer who actually had the option would look at our insane federal spending as ample evidence trust is flatly unmdeserved). When the Petrodollar goes along with it goes the single biggest bubble in the history of mankind, the solvency of the United States federal government … and you can bet those living at the top will be holding gold for that day.
You’re not the only one running with the Petro Dollar premise but I disagree with it.
As long as the overall strength of the US economy compared to others remains good and we remain a super power I don’t think it makes much difference.
If we cease to remain the chosen reserve currency for the majority of world countries I don’t see the USD taking any serious dives and if it does I have guranteed currency in large amounts.
Remember I’m the nut that was buying gold and silver when it was down to around 300.00/6.00 and semi loads of ammo before Obama even won the nomination.
