MB73: the present credit crisis is not a direct consequence of the fiat monetary system. It is in fact the result of widespread fraud within the US financial system. Fraud has more to do with the character of of the people in this business (as emphasized by the great J.P Morgan) than with the features of the fiat monetary system. Having said this, one also has to admit that fraud is much more difficult under a gold standard than in a fiat system.

Regarding the protection of savings against the theft due to inflation: It is an illusion to believe that our income levels in a gold standard would be as high as they are today under a pure fiat monetary system. The infation is therefore a necessary feature of the fiat system in order prevent its collapse within a rather short period of time. Inflation is necessary in order to adjust our capital consumption to levels which are sustainable long term and in line with what would be possible under a gold standard. The ultimate reason why we have a fiat system today is: we are better off under a fiat system than under a gold based system.