Is our American dollar backed by gold?

Question

Please dont answer if you don't know. Thanks

Answer 1

No.

Answer 2

No. It was for a time, but Nixon took us off the gold standard in the early 70s- I think it was 1971.

The ultimate cause of the collapse of the Bretton Woods Act (American dollar linked to gold, many other countries linked to American dollar) was the result of the American government printing money to pay for the Vietnam War and the Great Society Program. The other countries didn't want to have to compensate for America's fiscal irresponsibility, so one by one they either revalued their currency, or dropped out altogether. Finally, in 1971?, Nixon took us off the gold standard, and politicians have not looked back since, as they have become more and more fiscally irresponsible(spending more and more money that either doesn't exist, or doesn't belong to them).

BTW...Joe and Trolling are both partially incorrect, in case you need this information for an assignment.

Answer 3

The reason that fed notes have value is that people are willing to exchange useful goods for them, but that is also the reason gold and silver have value. In the real world most of our purchases are made buy credit card, checks or electric transfers so our money is just a way to keep track we are really using credit or promises to pay. People who back the gold standard want the accounting to be done in gold and to limit the credit available which would prevent it from expanding with the economic growth. This would produce deflation most of the time which means that holding gold would have a real positive return and and the more the held the less available and the greater the return due to deflation so the the rich would no longer have to invest in risky productive ventures to increase their wealth and would only do so if the returns were high. This would be nice for them, but the lack of investment and credit would suck for the rest of us. William Jennings Bryant had it right when he said "we shall answer their demands for a gold standard by saying to them, you shall not press down upon the brow of labor this crown of thorns. You shall not crucify mankind upon a cross of gold."

Answer 4

Nope, used to be backed by silver (the bills said silver certificate on them) but that was dropped years ago.
Now they are backed by our confidence only !

The US Mint does , however, make a real gold coins up to 1 troy oz in size , and they are sold at coin shops in most cities or from the mint directly if you want proof or uncirculated grade coins. Those are also available at the coin shops too.

Answer 5

No - we went off the gold standard during WWI, went back on it again for a short period of time, and then went off of the gold standard for good during the great depression.

After WWII, all of the major nations agreed to fix their exchange rates in relation to the US Dollar, but irresponsible fiscal policy during the Vietnam war forced Nixon to abandon this system before arbitragers caused it to collapse.

Answer 6

Not since the Great Depression. When the stock market crashed everyone tried to go to the bank to get gold in the amount of money they had in there accounts. Hence, many banks had to close as there was not enough gold to go around.

Answer 7

It used to be

Answer 8

Not anymore. Nixon changed that when he was in office in 1971

Answer 9

It used to be but it isn't anymore

Answer 10

No, that changed a long time ago.