Golden Flashback

Categories: The Austere Publisher
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Published on: November 19, 2010

In this day of intergalactic credits and debits, would going back to the gold standard be beneficial to a recession-wracked galactic economy or would it lead to the next Galactic War?

Recently, gold has been front and center in Kroy financial news. Out of all the tried and true investment strategies, gold has been one of the few financial cornerstones that has managed to stay valuable. The resale value of gold has reached almost 1,500 krohl per ounce – one of it’s highest prices in decades. Businesses that pay people to melt down their unused gold jewelry have been raking in killer Krohl as the public uses different ways to pay their bills. But being a cornerstone to a get rich quick scheme is not the true face of gold in Kroy’s modern economy.

In the past, much of the galaxy used gold as a standardized currency. Gold – despite inflated modern prices – is relatively stable in terms of cost and usage. During the 9th Dynasty, however, Mogul Dixon’s decree made Krohls the only official currency available inside the Kroy Territory.

While being on a purely krohl-based system has held off larger financial disasters in the past, it may have contributed to the current recession. When currency is no longer linked to something tangible – especially if it is used across different words and different galactic financial institutions – those who have been given control of what it’s value is can run unchecked. Something the Baronage has learned after losing fortunes on inflated potential.

Most proponents of returning to standard gold note that a galaxy-wide change of currency would be impossible. But they do insist that having gold as an option again would diversify the galactic economy and create a tangible object that could be traded without discussion of its value.

In fact, systems which are trying to distance themselves from Kroy influence have been doing just that. Yasia, a system made up of thousand tiny stations in the Asadian Territory, has been trying to inspire trade with Philosophical factions by creating the Gold Kro. The Kro has allowed small baronies to trade for goods and services directly without using the Krohl. It could potentially create an economy outside of the Krohl-based currency or the Eurysan Baronial Credit system.

Some worry that the galaxy is repeating the events leading up to the Galactic Wars. Financial crisis spurred both wars, and baronies are being pitted against one another to choose sides. If the instability and economic warfare escalates, it could result in confrontation.

Regardless, it seems that – much like how it was phased out by Mogul Dixon – if Standard Gold does decide to make a comeback, it will happen suddenly and without approval from the galactic community
 

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