What is freegold anyway ? FOA:

By holding gold as a "free reserve asset" and not an actual "currency backing" asset, gold can be used in nation to nation trade settlement without damaging the money supply. In reality it is reborn as the true world class currency it always was. >

^ and independent of government treasury issues. Governments can manipulate a "paper gold" market, weather it's working as a "gold exchange standard" currency system or our present gold market.

However they would not stand a prayer of a chance of working a >>

world "free physical market". Especially the colossal "wealth money" reserve market gold would become at very high prices.

In this respect it would dwarf the current trading of US treasury debt. This is an enormous advantage over the old gold standards because, .>

back then any country that ran a trade deficit found it's domestic money supply being drained.

By treaty and international protocol if gold was shipped "outside", the local central bank had to drain cash or print "unbacked fiat" to cover the void. This process was required because each cash unit was backed by a fixed amount of bullion.

The dollar at $35 / ounce as an example. This was suppose to tie the governments hands and force them to speed up or slow down the economy as the flow of gold dictated. In reality, the in and out flow of gold worked havoc with national economies and produced boom and bust cycles.

This rigid control, imparted by "fixing the gold price per ccy unit" did not allow for a "higher gold price". Truly, as technological advances moved "real" GDP forward, gold should have reflected this "wealth gain" by rising in price and value as the local currency was static.