Thanks to The Silverdoctors for this gem:
"The pending economic crisis that now faces America is painfully obvious. If
even a fraction of potential foreign claims against our gold supply
were presented to the Treasury, we would have to renege on our promise.
We would be forced to repudiate our own currency on the world market. Foreign investors
, who would be left holding the bag with American dollars, would dump them at tremendous discounts in return for more stable currencies, or for gold itself
The American dollar both abroad and at home would suffer the loss of public confidence. If
the government can renege on its international monetary promises, what
is to prevent it from doing the same on its domestic promises?
really secure would be government guarantees behind Federal Housing
Administration loans, Savings and Loan Insurance, government bonds, or
even social security?
"Even though American citizens would still be forced by law to honor the same pieces of paper as though they were real money, instinctively they would rush and convert their paper currency into tangible material goods which could be used as barter.
in Germany and other nations that have previously traveled this road,
the rush to get rid of dollars and acquire tangibles would rapidly
accelerate the visible effects of inflation to where it might cost one
hundred dollars or more for a single loaf of bread. Hoarded silver
coins would begin to reappear as a separate monetary system which,
since they have intrinsic value would remain firm, while printed paper
money finally would become worth exactly it's proper value
--the paper it is printed on! Everyone's savings would be wiped out totally. No one could escape.
"One can only imagine what such conditions would do to the stock market
and to industry. Uncertainty over the future would cause the consumer
to halt all spending except for the barest necessities. Market for such
items as television sets, automobiles, furniture, new homes, and
entertainment would dry up almost overnight. With no one buying, firms
would have to close down and lay off their employees. Unemployment would
further aggravate the buying freeze, and the nation would plunge into a
depression that would make the 1930s look like prosperity. At least
the dollar was sound in those days. In fact, since it was a firm
currency, its value actually went up as related to the amount of goods,
which declined through reduced production. Next time around, however, the problems of unemployment and low production will be compounded by a monetary system that will be utterly worthless.
All the government controls and so-called guarantees in the world will
not be able to prevent ! it, because every one of them is based on
the assumption that the people will continue to honor printing press
money. But once the government itself openly refuses to honor it--as
it must if foreign demands for gold continue--it is likely that the
American people will soon follow suit. This in a nutshell is the
so-called 'gold problem.
” (The Teachings of Ezra Taft Benson p 639-640.)