With Paper Money - Confidence is Suspicion Asleep

Barry Downs and Bill Matlack

The US dollar is likely to end up toppled as the world's reserve currency, perhaps replaced by a temporary hodgepodge basket of currencies centered on the euro. But make no mistake about it, irreversible damage to confidence will be inflicted on the world's paper currency system and the stage will be set for the inevitable repudiation of all unbacked paper currencies. Eventually, a new system of currencies centered around gold will be initiated, and confidence will then be restored and suspicion will be asleep, at least until some other future generation also tries to substitute paper for gold.