As the price of gold rises, shouldn't that make our gold reserves worth more

[Ghost in the Machine]

thus strengthening our economy and the value of our dollar? Isn't our cache of gold what *really* forms the backbone of our Government's finances?

[wildbilln864]

1. I don't think we have any.

:shrug: Probably I'm wrong but I seem to remember reading that.

But no Ghost. We went off the gold standard in the 1930s I think it was. Currency is based on nothing but an I.O.U. from uncle Sam, who's over charged his plastic. :hi:

[Ghost in the Machine]

4. Thanks wildbill...

I guess I could have been a little less lazy and looked it up...

:hi:

[wildbilln864]

6. Oh no problem bro...

I remember it because I was surprised to read about the gold seizure in the thirties I believe it was. Every American had to turn over their gold. :shrug: Free country alright.

[sharesunited]

2. I believe that the USA abandoned the gold standard during the Nixon Administration.

Now the dollar floats on faith and threat of force.

[BrklynLiberal]

3. Yep. That is what happened. Our currency is no longer backed by gold.

[pnwmom]

5. We still have gold reserves, unconnected to our currency.

And we (and central European banks) sold off a lot of gold several years ago, when the ridiculous theory prevailed that gold was no longer the standard -- that stocks were! (Seriously.)

[BrklynLiberal]

10. Gee. I wonder who made a lot of money off that decision????

:crazy:

[Ghost in the Machine]

7. Yes, you're right... thanks

Abandoned Gold Standard Guarantees Inflation
In recent weeks, as prices have surged higher, “revived” inflation has become the topic du jour among establishment writers. Unfortunately, these writers point to the usual suspects, i.e. higher energy costs, higher interest rates, etc. In fact, inflation was guaranteed when the United States abandoned the gold standard.

The United States abandoned gold as the foundation of its monetary system in two steps. In 1933, President Franklin Roosevelt ended Americans’ right to surrender paper dollars for gold and even to own gold bullion. Step two came in 1971 when President Richard Nixon “closed the gold window” and denied foreign governments the right to turn in paper dollars for gold.

Roosevelt’s move was a major step in shifting the world from the gold standard to the gold exchange standard. Under the gold standard, governments fixed the prices of their currencies in terms of a specified amount of gold and stood ready to convert their currencies into gold at the fixed prices.

Under the gold exchange standard, governments could hold U.S. dollars and British sterling as reserves because those currencies were “exchangeable for gold.” The move to the gold exchange standard became official with the adoption of the 1944 Bretton Woods Agreement. When Nixon closed the gold window, those nations counting paper dollars as reserves found themselves holding paper instead of gold.

http://www.cmi-gold-silver.com/gold-standard-inflation-fiat-money.html

[wildbilln864]

8. not during Nixon, much earlier....

http://www.fff.org/freedom/fd0610a.asp

[Naturyl]

9. See my signature link for eye-opening info on money

I got the link from Dennis Kucinich.