In scientific usage, a theory does not mean an unsubstantiated guess or hunch, as it can in everyday speech. A theory is a logically self-consistent model or framework for describing the behavior of a related set of natural or social phenomena. It originates from or is supported by rigorous observations in the natural world.
In science, a theory is a testable model of the manner of interaction of a set of natural phenomena. A theory is capable of predicting future occurrences, and capable of being tested through experiment or otherwise verified through empirical observation.
In science, the word theory refers to a comprehensive explanation of an important feature of nature that is supported by many facts gathered over time. Theories also allow scientists to make predictions about as yet unobserved phenomena. (Paraphrased from Wikipedia)
Economics is a social science!
For the theory of FreeGold, the experiment is well underway. The future has arrived, so keep your eyes peeled for empirical evidence. Some of it is already out there.
One way you can tell that a theory might be correct is by viewing it from every possible angle. If it remains logically self-consistent from different angles there is a high probability that it is correct.
Here is a great article that speaks to me, as Another would say. It provides another angle from which to evaluate FreeGold. Don't focus on an official gold standard which may never happen again. But think instead about a natural gold standard. And think about whether or not a truly free floating gold price could affect the same controls on interest rates as an official gold standard. Perhaps it would act more like a fire alarm than an outright ban on playing with fire.
For more FreeGold theory, please read Ender's comments.
"Oil" exchanging dollars for Euros
China fears dollar dumping
US Mint suspends gold Buffalos because of depleted inventory
Russian President tells gold mines, "Produce faster!"
The "Strong Dollar Policy" may have run out of ammunition.
So true it's almost not funny. I said almost.