Well Dan, I found out that capital gains are not taxed under the fairtax scheme so that would allow gold to be used as money again (as I agree with JP Morgan, gold is money, everything else is credit). I think if you learn more about why gold is money you will notice that the fairtax system would never be adopted while our current monetary system is maintained. Monetary reform and the fairtax system might work. The country of Colombia comes very close to the fairtax system but they found that exemption of capital gains tax makes it unsustainable so they augment it with a annual wealth tax of 3% of all worldwide holdings for everyone with more that $50,000 of wealth and then an additional 1% on worldwide holdings over $1,500,000. I happen to know about their system because I will retire there soon.