Why did the US government abandon the gold standard for fiat money?

Answer 1

When our currency was backed by gold, anyone who wanted to convert this currency into gold could do so. Anyone, and this included other countries that held our dollars. As such, since we are primarily an importing country and many of our dollars are held by other countries, alot of gold began leaving the country as other countries began redeeming their dollars. This was troubling to the country, and thus the gold standard was abandoned in order to keep the gold in the country.

Answer 2

We will probably never go back to the Gold Standard...as the total amount of gold ever mined at current value is probably worth around $4 trillion and the amount of currency in circulation in the US exceeds that at $7.5 trillion. If we were to return to the standard, it would make gold values enormously increase, and then many of its applications now being used would be discontinued.

Answer 3

The US M1 money supply is about 1.38 trillion.

all the gold ever produced is 4.6 billion oz.

$300 dollars per oz..... but that means nobody else gets to back up their currency with gold. No fillings, jewelry or electronic use of gold either...

really though value is what it'll sell for. The dollars value, and the yens, euros, lb sterling, and all the rest of the currencies of the world are valued as to what people think they are worth.

Answer 4

It was abandoned in 1933 in order to finance World War 1.

Answer 5

Fiat? did you mean Fake?
if you meant fake, then it was due to not having enough gold to cover all the deficits. so, if you're a sovereign nation, you can just write I.O.U.s on any old thing you want.

Answer 6

Because gold is limited, and the economy expanding without more cash leads to deflation, which is a Bad Thing.

Answer 7

Because they where printing more money than are gold reserves could back.

Answer 8

So they can print more.