Gresham's Law basically states that bad money drives good money out of circulation when the government enforces laws that artificially overvalue the bad money and artificially undervalue the good money.
Therefor, can we say that in a scenario where government control breaks down (anarchy to some degree), that the free market would regain control of, and determine the definition of money once again?
I raise this point because, I've heard some youtubers, and read some authors who think that the new world currency will be a basket of this or that, or issued by china, or backed by gold and silver, or a return to the gold standard. But to me that just sounds like more of the same. Govt control of money will be a failure in plain sight for everyone on planet earth to see this time around.
What if this time, when the paper fails, the free market spirit wakes up and decides that control of the money supply is not a government issue, and instead is something that should be handled regionally, and privately? I picture some mints running batches of .9999 Ag or Au, and then competitors running 5 9's or 6 9's, guaranteed to weigh within plus or minus .0001 oz from the mint.
Am I a dreamer? Are people really going to watch the dollar and the euro go down in flames, and then sign up again right away for another govt issued paper currency? If we can overcome this attachment to govt issued money imagine what humanity could do. We'd be traveling to new galaxies in no time. Instead right now we're running on a hamster wheel that's running in reverse.
I also have great pleasure in imagining that in my above scenario, the only people willing to take paper as payment are banks. Banks would be the buyer of last resort for all dollars in existence.
So all dollars would head back right to the banks, then eventually the Fed. Meanwhile the general public circulates Gold and Silver coins. Oh that makes me smile.