How much gold does United States have backing the U.S. Currency?

Similar questions: gold United States backing Currency.

Gold no longer backs U.S. Currency In the early 1970s, inflation caused by rising prices for imported commodities, especially oil, and spending on the Vietnam War, which was not counteracted by cuts in other government expenditures, combined with a trade deficit to create a situation in which the dollar was worth less than the gold used to back it. In 1972, the United States reset the value to 38 dollars per troy ounce (122.17 ¢/g) of gold. Because other currencies were valued in terms of the U.S. Dollar, this failed to resolve the disequilibrium between the U.S. Dollar and other currencies.In 1975 the United States began to float the dollar with respect to both gold and other currencies.

With this the United States was, for the first time, on a fully fiat currency. In economics, fiat currency or fiat money is money that enjoys legal tender status derived from a declaratory fiat or an authoritative order of the government.It is often associated with paper money because, without government fiat, bank notes are not a legal tender in payment of debt, and only specie is unlimited legal tender for money debts. However this is not universally true, as some currencies, notably sterling issued by Scottish banks, is not legal tender but is accepted by longstanding confidence in the Scottish banking system.

A bank of issue whose notes enjoy legal tender status by government fiat can use its own notes, making their redemption in specie optional — a matter of the 'monetary policy' of the bank in question. The institution of fiat currency has preceded and enabled the demonetisation of specie, via a monetary policy decision not to offer payment in specie at par, e.g. By suspension, devaluation or redemption in bullion or foreign currency instead. Eventually this leads to no form of payment, redemption or exchange whatsoever being offered by the issuer and a system of irredeemable freely floating national URL1 September 2004, it was estimated that if all the gold held by the U.S. Government (261.7 million ounces = 8 140 Mg) were again required to back the circulating U.S. Currency ($733,170,953,704), gold would need to be valued at $2,800/ounce (90 $/g).

Sources: http://en.wikipedia.org/wiki/story_of_the_United_States_dollar#Gold_standard .

None. Don't get me wrong, they have gold boxed away in various places like the famous Fort Knox, but it doesn't back the Dollar any more. The gold is maintained as an internal reserve functioning as collateral for various international loans.It's presence does buoy up the dollar, but not directly.

The Gold Standard, and it's younger brother Bimetallism have been out of fashion in modern economics for a while now. The US officially left the gold standard in 1933, after widespread beliefs that it was a contributing factor in the great depression. The basic problem with the gold standard was that it was a) only as good as the word of the government that set the standard (if they decided to lower the exchange rate, who could stop them?

) and b) it tied the currency into the value of gold, which created a cycle of deflation since in times of economic uncertainty, people hoarded gold, which caused the relative price of gold to rise, which caused economic uncertainty, which caused people to hoard gold ... You get the idea. Modern currency is valued based on supply and demand across world markets. That is, a dollar is with what it is worth based on how many yen or rubles people are willing to give you for it.

The disadvantage is that nobody knows quite what a "dollar" is, except as an agreed upon value. The advantage is that as long as nobody defines what a dollar is worth, nobody can change that value to suit their own purposes..

None, because US currency is not backed by gold US currency is not backed by gold, or silver or any other tangible asset. It's only backed by the credibility of the US government and the strength of the US economy. That's not to say that the US doesn't have gold reserves, we do, but they don't back the currency.It used to be that you could take your dollar bill to the federal reserve and turn it in for gold (or maybe silver, I can't remember).

You can't do that any more. A dollar is simply a piece of paper, but practically everyone in the world is willing to accept it as payment. That's where it gets its value.

US currency hasn't been backed by the gold standard for many years This article explains the gold standard. en.wikipedia.org/wiki/Gold_standard More on the dollar. en.wikipedia.org/wiki/United_States_dollar This may interest you,but I doubt it.

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I cant really gove you an answer,but what I can give you is a way to a solution, that is you have to find the anglde that you relate to or peaks your interest. A good paper is one that people get drawn into because it reaches them ln some way.As for me WW11 to me, I think of the holocaust and the effect it had on the survivors, their families and those who stood by and did nothing until it was too late.