>Money used to be trust - that is eroding away. While a gold standard clearly was a binding the currency to an external
>commoditiy not best correlated with normal economy, it was a fine safeguard to keep the central bank "honest".
The moment the banks were allowed to "leverage", i.e. issue loans from the money they don't have, there was nothing left to trust. I actually trust that the people are, en masse, stupid enough to believe in this funny money, and that it will keep having this psychological value, ergo, the value. So I don't really care if the money I make is imaginary, as long as it gets me palpable goods.
If you follow the theory, both $ and € should have gone down to 2% of what they were 12 years ago, but they didn't. It's simply a convention, agreed upon among the banksters of the world, which will kept indefinitely. Had the world stayed with national banks, with governments/parliaments issuing money, the theory may have held. But it's now just about one big bank (a conglomerate of the Fed, IMF, World bank and a few others) who play the tune to which the rest of the world has to dance. Governments are largely irrelevant, as long as they can't even go to take a leak without borrowing money from these guys.