If the U.S. Currency is not backed by gold, what guarantees that the money is even real?

Question

When the U.S. Currency was backed by gold, you knew there was something there supporting our monetary system. Now that American money is not backed by gold, how do we keep things balanced? How do we know money is worth anything besides just its weight in paper? What's to keep it from just collapsing? Thanks!

Answer 1

To answer your question, absolutely nothing.

If the Treasury department decided to print mass amounts of paper money and devalue the currency, there really isn't anything we can do about it. The only thing that makes American currency of value is the fact it is backed by the full faith and credit of the US Government.

Backing a currency with gold or any other precious metal doesn't make a currency more valuable per se. What it does is keep a country from over producing its currency and devaluing it from over production.

If you are interested in what would happen if currency were over produced, do some research on Nazi Germany at the end of WW2. They kept printing paper money to the point it was worthless. People would get paid every day because the currency would be worth less tomorrow.

Answer 2

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Answer 3

Who says its not backed up with Gold?

Answer 4

is it back Whit gold