What would happen if the USA dissolved the Federal Reserve Bank and went back to the Gold Standard?

Question

There must be some reason it continues to opperate, besides tyranny, right?

I think you're mistaken Adoptive Father:

http://en.wikipedia.org/wiki/Gold_standard

Answer 1

The Federal Reserve and the Gold Standard are not mutually exclusive. If I remember correctly (a big if) the Fed was formed in 1913. The US abandoned the Gold Standard in the 1970's under Nixon. Honestly I like the gold standard, I think we should bring it back.

I wonder if you are thinking that the Gold Standard means that all US currency is backed by gold. It does not and it is not. The Gold Standard fixed (within a small range) the value of the US dollar relative to gold. Other foreign currencies were then based off of the US dollar (again within a small range).

OK OK, so there are two meanings to Gold Standard. According to the article you cite, the Breton Woods agreement (above) is a (not the only) Gold Standard.

I stand by my earlier statement that the two are not mutually exclusive.

Answer 2

It is not possible. There is not enough gold in the US to back up all of the money in circulation. That is a US Treasury issue, not a Federal Reserve matter.