Gems are the standard currency of the game for level ups and global upgrades.
Others on the panel included Richard Ebeling, professor of economics at Northwood University, and Rob Gray, of the American Open Currency Standard.
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In addition to all of these tax issues, the U.S. in the early 1930s was on a gold standard where paper currency was legally convertible into gold.
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Under the old gold standard system, a currency could be converted into fixed amounts of gold and vice versa.
Fiat means by decree, and under the gold standard, a given currency is forced on the population by law, regardless of what anyone desires, needs, or judges to be best.
This promise can be verified every minute of the day by observing the current rate of exchange between the dollar and gold, and, under a classical gold standard, by exchanging currency at a national bank for gold coins of a fixed weight and purity.
In 1931, as the Austrian bank Creditanstalt collapsed, pulling down the banks of Germany, Czechoslovakia, Hungary and Poland, a run on the German currency forced it off the Gold Standard in May, then the British Labour government struggled to maintain its currency peg - imposing austerity onto its own voters as the price.
"It leaves Pandora's Box wide open, " said Mike Moran, senior currency strategist at Standard Chartered.
With that said, the 19th century did have some periods when the intent to reinstate a gold standard system, after a currency devaluation, resulted in a rising currency, with some recessionary effects.
And going forward into a world of little economic growth, where money printing and debasing the currency is the standard, I only want to own companies that consistently grow free cash and use that cash to shrink the float.
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What it actually did was come off the gold standard, thus devaluing the currency by some 25% (deserately needed for Churchill had rejoined it at much too high a rate years earlier) and cut government spending at the same time.
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But even without this pressure, Chinese officials had reason to question their choice of standard to which to peg their currency.
When I started at the Richmond Fed in August 1968, what they are now calling currency manipulation was the standard, accepted international monetary system.
The last time we went down this path under a de facto European single currency (the gold standard), it took European states into hateful and divisive stages of our past.
This is also a compelling reason to oppose any plan to simply convert the national monopoly currency to a commodity basket standard.
And the budget deficit has led the US ratings agency, Standard and Poors, to put the currency on review for a possible downgrade.
Since all major currencies could be exchanged for gold or other currencies pegged to a currency that follows the gold standard, exchange rates would remain stable without anyone doing anything.
Adherence to an unsustainable currency union - the Gold Standard - then forced governments to continue deflation-worsening policies, provoking social unrest and inter-country tension over unpaid debts (in this case war reparations, but still debts).
In that year, the U.S. was busy trying to convince the public that it was going to dilute the gold standard with silver convertibility if not greenback currency, while suggesting it might also impose an income tax.
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However, a gold standard system can make available any amount of currency, as is appropriate given economic needs and the fixed parity value.
If one retains doubts about the benefit of trying anything other than gold, there is still an important reason to advocate private currency competition over a government gold standard, and that is the practical execution of the standard.
When the value of the currency is too low compared to the standard, you decrease the supply.
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In other words, when the value of the currency is too high compared to the standard, you increase the supply.
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In the case of a gold standard system, the policy target is to create a currency whose value is fixed to gold.
Once that currency is the euro, money managers in these countries can invest all over the single-currency region and so will need a euro standard.
The foreign currency exchange guarantees that everyone ends up with the currency they want as well as sets the standard of comparisons like the value of cars in yen to the value of food in dollars.
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So in order to maintain a credible currency which is the picture definition of a gold standard, governments would necessarily avoid major deficits.
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Moreover, abandoning the gold standard in favor of free floating currencies was supposed to eliminate currency crises and lead to an automatic adjustment in trade imbalances.
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The lack of any monetary rule to constrain the Fed and the lack of any convertibility principle, as existed under the classical gold standard, means the Fed has a monopoly on base money (currency held by the public plus reserves), the supply of which is determined by a small group of Fed officials who presume to be able to forecast the future.
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Any bond investor will tell you that, assuming a currency of stable value such as is provided by a gold standard system, yields on high-quality debt will tend to decline in a recession.
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