2007-02-06 10:55:44 · 8 answers · asked by crazymonkey7656 1 in Social Science ➔ Economics
No, it isn't backed by gold. FDR abandoned the gold standard during the Great Depression in an attempt to inflate the US out of the depression (that's where a lot of Fort Knox's gold came from).
After WWII, Bretton-Woods put the world on a rough sort of gold standard, and after the money-printing during Vietnam, Nixon abandoned it.
2007-02-06 13:05:51 · answer #1 · answered by Anonymous · 0⤊ 0⤋
The gold standard was dropped in the 70's. But the US government still holds $165 Billion in gold. Many nations dropped the gold standard but still have a large reserve of gold. Some sell it slowly, because if they dumped the thousands of tonnes onto the market the price of gold would free fall.
2007-02-07 16:04:00 · answer #2 · answered by JuanB 7 · 0⤊ 0⤋
No the dollar is not backed by gold and has not for years.
2007-02-06 19:20:06 · answer #3 · answered by Mary Lou 1 · 0⤊ 0⤋
The US dollar hasn't been backed by gold since 1971. Immediately before that, one ounce of gold backed 35 dollars.
2007-02-06 19:15:04 · answer #4 · answered by Geoffrey F 4 · 1⤊ 0⤋
The US$ is not backed by any commodity. Today it is backed by the goods and services it can buy. That is, the US$ is what is called fiat money - it has value because we believe it does. The theory is that the amount of money in an economy is equal to the amount of goods and services produced in that economy for that year (Real GDP). It is for that reason that the value of the US$ does not fluctuate with the variance of gold, but will fluctuate realtive to other currencies based on how many good and services can be bought from that other foreign country.
2007-02-06 19:32:16 · answer #5 · answered by mcaggia 2 · 1⤊ 0⤋
No it is not. The gold standard was abandoned during the depression. If fact for many years after it was illegal for U.S. citizens to own gold. FDR did that so that the government could print as much money as they wanted.
2007-02-06 21:37:36 · answer #6 · answered by Roadkill 6 · 0⤊ 0⤋
It is NOT backed by gold. Nixon took us off the "gold standard" in the 70's.
2007-02-06 19:03:10 · answer #7 · answered by dapixelator 6 · 1⤊ 0⤋
Good question, I'd like to know as well. 'Cause there is a conterfiet ring in chicago and I think it coincides with a ring of gold dealers in that area who report sales for the conterfiet cash that they deal with.
2007-02-06 19:06:10 · answer #8 · answered by Prudent World 3 · 0⤊ 0⤋