[sGt HarDKorE]

My history teacher told me that our money isn't backed up by gold and some president did this a while ago. If this is true, then what determines how much our money is worth?

[magprob]

Our money is not backed by anything of value. However, the worlds oil is priced in dollars. Any country that needs to buy oil, must hold a certain amount of U.S. dollars in reserve to buy that oil. Hence, the "world reserve currency." We have benifited greatly from that deal Kissinger cut years ago. Cheap goods and services for all.
Saddam Hussein decided that he wanted to price his oil in Euros. The United States government did not agree with him on that so they killed him.
Now, the president of Iran wants to not only price his oil in a currency other than dollars but, he wants to build and operate his own oil exchange. Rich Cheney doesn't want him to do that so Iran is now a part of the axis of evil and they are waving their swords at him.
Same with Hugo Chavez in South America.
As countries drop the dollar as their reserve currency, the dollar loses its value.
As we keep printing and spending unbelievable amounts of dollars, fighting wars to control oil, the dollar loses even more value. As with every fiat currency, the economy finally collapses. Ours is no different and it is in the process of collapse.
The one thing that all axis of evil countries have in common is the fact that they do not belong to the central bank, ie: federal reserve or Bank of England.
As long as they do not allow the federal reserve bankers to control their resources through usery, (oil, crops, labor) we will continue to battle it out around the world.
It is a battle for supreme power and control with finance at the heart. Now, we will be coerced into accepting anything when the chance of hunger and poverty face us and our children.
This is only going to get worse... much worse.

[twinkiedooter]

Your history teacher is correct. The US currency is now backed by "thin air" and the air is getting thinner by the minute. Or as some folks would like to put it, it's backed by "hot air". In other words, it's backed by nothing but someone's vivid imagination that it is backed by anything at all. The Federal Reserve can print money legally - as long as they have the special paper and lots of ink to do it with.

[Uncle Ed]

my history teacher told me that our money isnt backed up by gold and some president did this a while ago. If this is true, then what determines how much our money is worth?

All credibility is forfeited by Magprob with the opening assinine statement about “he wanted Euros … so USA killed him (Saddam)”! Magprob (ughh) then goes on to laud Iran and Chavez! I expected to find here a legitimate Website … but printing garbage like Magprob’s disqualifies www.askmehelpdesk.com forever... Goodbye and good riddance … Uncle Ed

[ebaines]

The dollar is backed by the "full faith and credit of the US government" - you can take that at face value. It was President Nixon who decoupled the value of the dollar from gold in 1971. Up till then the price of gold was fixed at $35/ounce. Most European countries decoupled their currencies from gold back in the 1930's.

[magprob]

"Full faith and credit of the Chinese Government."
You got the government part wrong ebaines.
The IMF recently dumped 400 tons of gold on the open market to control the price surge. India bought 200 tons. Others bought large hunks. Didn't work now did it?

[magprob]

And I'll tell you another little secret.
All the gold the IMF has been selling, is gold plated tungsten.
Officials were shocked to learn that the bars were fake. They contained cores of tungsten with only a outer coating of real gold. What's more, these gold bars, containing serial numbers for tracking, originated in the US and had been stored in Fort Knox for years. There were reportedly between 5,600 to 5,700 bars, weighing 400 oz. each, in the shipment!
A global criminal cartel has taken over the world. Simon Bar Sinister ain't his name and Underdog ain't going to be able to save the girl!

[ebaines]

And I'll tell you another little secret.
All the gold the IMF has been selling, is gold plated tungsten.

Do you have a source for this? There were internet rumors about this back in November (you know how reliable internet rumors usually are), but has anyone actually ever found a tungsten filled bar? It's funny that there has been no "news" on this for two months - the nutters must have moved on to a new conspiracy theory of the month.

[magprob]

"Full faith and credit of the Chinese Government." is starting to slip. Who will buy our treasury bills now? Maybe Russia. They seem to be quite the money managers these days.
I have built a fully equipped vault in my basement. One inch thick bars and Folger Adams locks and keys. Inside, I have 1200 cans of SPAM stacked, like gold bars. A dummy wall hides it all. NO ONE WILL FIND MY TREASURE I TELL YOU!

[Clough]

Old and now archived thread that isn't generally visible to everyone on the daily list.

Sufficient enough answers have been given.

Thread is now CLOSED.