Why aren’t we tagging all our currencies back to gold?
January 13th, 2010 | 
Author: Is there a problem in discarding the use of the current fiat currency?
i do not mean carrying gold coins. i mean tagging the currencies to an actual value of stored gold.
Because there is not enough stored gold to guarantee the value of the currency in circulation. That is why the US went to the silver standard. Then we found out that there is not enough silver to guarantee the value of the currency in circulation. That is why US currency is now backed by "the full faith and credit of the United States."
Posted in fiat currencies
Convenience. We like to carry bills instead of gold bars or coins. You lose a 1 oz gold coin and you just lost $575. It would be impossible to make change if we used gold coins.
The US dollar is based on the US economy and is not backed by gold as in the old days. We a country needed to back up its money in gold, the world economy would be much, much smaller. Most nations’ currencies are based on their economy and not gold. It is simpler and allows for more investment worldwide.
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yes we should be getting back to the true value of our cash supply- people talk about how clinton balanced the budget and what they dont realize is that he didnt balance it, he just printed more money without value- dropping the value of the US$ all together. We have more currency than we have gold in the nat’l reserve and THATS a huge part of why our economy LOOKS so bad (when it really isnt doing that bad)
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Because there is not enough stored gold to guarantee the value of the currency in circulation. That is why the US went to the silver standard. Then we found out that there is not enough silver to guarantee the value of the currency in circulation. That is why US currency is now backed by "the full faith and credit of the United States."
References :