How can our money system last if it is no longer backed by gold or silver?

Question

VOLTAIRE (1694-1778)
"Paper money eventually returns to its intrinsic value ---- zero."

Answer 1

It cannot. Our money has no value. Are you familiar with the Rothschild's or the Council on Foreign relations conspiracy's? If not read up. Your question will be answered.

Answer 2

Gold was the basis for the Bretton Woods Agreements, which collapsed in 1971-1972 and now the only reason the money is used in the exchange for goods and services is because we believe there is value in those green pieces of paper. There was no way the Gold standard could have been maintained because it was impossible to increase the money supply by the levels necessary to sustain growth in the economy. When the economy needs additional money the fed can engage in open market operations to expand the money supply but this is very difficult if the government engaging in expansionary money operations does not have enough gold. You ask how can it last, the answer is people think it is worth something so they use it. Many people do not even know we are off the gold standard much less know we have been off it for 34 years. It is possible the money you use could collapse in the future because Bush has increased the debt by trillions and if the Chinese decide to unload their positions the value of the dollar will collapse. The demand for the dollar will fall if the Chinese sell their US bonds causing the devaluation and leading to a financial crisis. If you want to avoid this do not vote Republican in the next election so the Democrats can once again balance the budget. We need to stop selling our national security to China.

Answer 3

Keep in mind that silver and gold have very little inherit value as well.

Aside from uses in electronics it has no value other than it was and remains in certain quarters a convenient medium of exchange.

Gold is shiny, it does not rust. That is the reason why humans used it as a currency for thousands of years. It can not be eaten.

People who pine for a return to the gold standard are only fooling themselves by believing that a lump of metal is more valuable than the writ of a government.

Both have value only in the context of mutual agreement.

Unless you are trying to sell gold, then your motivation to worry people about the modern economic system becomes quite clear...

Answer 4

It can't. We are on a dept system. As long as people keep passing on the dept we are OK. The system we have destroys us in the long run with inflation. Houses and cars are out of site compared to their intrinsic value. One day the house of cards will come crashing down and great will be its fall.

Answer 5

It's backed by the US economy. Gold & silver have little intrinsic value.

Answer 6

It was!yet Bitain got here off the top-rated interior the Nineteen 1920s!Of previous due our Chancellor offered our gold for $250 an oz.. now that's $one thousand an oz.. to purchase the falling greenback!

Answer 7

it is backed only by faith
and the fact that we're still willing to work for it

but really that's kind of the same basis gold and silver had to begin with.

Answer 8

Smoke and mirrors. The same way it's continued since 1913.

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Answer 9

It is backed by an honor system. if other countries say it is worthless it will then be backed by thousands of trident missiles