The Dollar
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Archived from the IMDb Discussion Forums — Economics, Business, Money, Finance
coolhandjeff123 — 17 years ago(October 22, 2008 09:32 PM)
Okay. So the dollar is fiat money, yes? Does that mean that it is not directly backed by gold or anything else (without getting into advanced economics) aside from government decree? If this is the case, what purpose does all that gold in Fort Knox serve, and if this is not the case, what is the case? Any help on this would be greatly appreciated!
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abc033185 — 17 years ago(October 24, 2008 09:14 AM)
U.S. Moved off the gold standard in the 1933.
What money is now a day is paper mixed with jeans with credit faith that the government will back the dollar.
"There is an emotionally unstable man on the ground controling this plane." -
artsiistra-1 — 17 years ago(October 24, 2008 12:09 PM)
Worst case scenario - gold would be the currency of last resort to use in the market place. Would be of good use in a severe depression. Especially, if other countries decided to trade in their dollar holdings. Would render the dollar as essentially worthless.
Check out Germany's pre-WWII economic policies. Their money used to be so worthless, that it wasn't worth the paper it was printed on. Used to be listed in Guinness World Record books. I imagine it might have changed since the '80's