0riginally published on March 5, 2007, but updated in May 2016, Among those whom I like or admire, I can find no common denominator, but among those whom I love, I can: all of them make me laugh.H. Bitcoin backed by usd, enormous returns within 5 months. But the reality with this government theory of GDP backing the dollar is flawed to begin with. … It’s a nice legacy that our generation is leaving future generations isn’t it? At some point in time something is going to have to give; expect the workers who are depending on their pension and medical benefits to get a huge surprise in the not to distant future. The George W. Bush administration was spending out of control and President Obama’s administration is piling on debt at an even more alarming rate “to prevent the system from collapsing” mind you. Copyright © 2017 BuyGoldAndSilverSafely.comAll Rights Reserved. USDC is an alternative to other USD backed cryptocurrencies like Tether (USDT) or TrueUSD (TUSD). JPM Coin, as the bank is calling its new cryptocoin, is considered fiat currency because it's backed by U.S. dollars in accounts designated at JPMorgan Chase … It is one’s production that is the actual backing of the dollar, not the piece of paper itself. SDRs would eventually replace the U.S. dollar as the global reserve currency. The report is dubbed, “Perceptions of Money and Banking in the US 2019” with a 1000 respondents who answered about 23 questions ranging from banking to fiat money and even the Federal Reserve Full story. Coercion is what holds the U.S. dollar system together. Educate yourself about investing in gold. All ideas and material presented are entirely those of the author.  These actions were upheld by the U.S. Supreme Court in the “Gold Clause Cases” in 1935.. It was backed by gold before Obama and by air after Obama. The book; “Buy Gold and Silver Safely” is available by clicking here Contact phone number for Buy Gold and Silver Safely is 888-604-6534. Did you hear the other government rumor about gold? Before any new project is approved the government should have the money to pay for it. why anyone would dump the dollar for gold or bitcoin,etc? Because USD-backed stablecoins can usually be redeemed for actual USD, there is little reason to sell it at below the value of 1 US dollar. However, the previous dollar had been represented by 1.60 g (24.75 grains) of gold. Asked by Wiki User. “Tax-driven money” is the phrase that economists use to describe the theory. In other words its as good as rubbish and while that might be true, it does not matter for the masses think otherwise. It is a known fact that in the year 1909, the nation shifted to a standard of gold, fixing gold and silver as the legal-tenders of the country. The way to end the problem is to put the following rules into play. The other U.S auto manufacturers are in just as much trouble. Nobody in hell including yours truly wants to run around with a heavy sack of gold or silver coins strapped to their necks. NX is hugely negative and has been for quite some time, G or “government spending” is all that is running the show. Relevance. Wikipedia Could Bitcoin Why the Fed. Don’t be confused by all the games the Treasury and the Federal Reserve are playing with Quantitative Easing and interest rate manipulation to help the economy. 2 years ago. What is the US dollar backed by?? Perhaps a little insurance with gold and silver, what used to be our money and back our money makes sense? What backs up the dollar is the public's faith that the government will not print too many … That changed with Nixon aka the Nixon Shock, back in 1971. Now via the fractional banking system, they can create 9 new dollars for every dollar of deposit they have. is considered fiat currency the Chinese Yuan, or Dollar as the world's Tether (USDT),, USD Coin, $190 billion suggests otherwise. The past track record of any trading system or methodology is not necessarily indicative of future results. a currency that is not truly backed by anything tangible like gold or silver GDP is defined as “The monetary value of all finished goods and services within a country’s borders in a specific time period It includes all of private and public consumption, government outlays, investments and exports less imports that occur within a defined territory.”, “C” is equal to all private consumption, or consumer spending, in a nation’s economy Likewise, gold-backed stablecoins are typically backed by either 1g or 1oz of pure gold (depending on the stablecoin), hence few token holders are willing to sell below the gold spot price. 13 Answers. This was only suspended in the year 1933 by President Roosevelt owed to inflation. It is a known fact that in the year 1909, the nation shifted to a standard of gold, fixing gold and silver as the legal-tenders of the country. 29% of surveyed Americans believe that the U.S. dollar is still backed by gold, a recent survey of 1,000 respondents showed. Over the time that the United States dollar was backed by gold, it experienced major fluctuations in value in relation to the world market. I is down to nothing (especially now that lending has dried up) Is the US Dollar backed by the largest, most modern military in the ENTIRE world? All trades, patterns, charts, systems, etc. Although it has been 88 years since the system changed as much as 29 percent of the United States (US) is still unaware, what is US dollar backed by? What is the US dollar backed by? Cut their supply and the dirty game comes to an end. What are you doing about it today to protect yourself? See Answer. We have inflation and fake boom and bust cycles because bankers control the money supply. dollars you are accepting as payment, are nothing but IOU’s. Educate yourself as to what money is and what really backs the U.S. dollar. It’s just a matter of when. The best... $19,000 and approaches How Bitcoin Gets | BTC USD. Leading Economic Indicators: Finally in Syn With The Stock Market? The Congressional Research Service (CRS) notes that the U.S. dollar has been “on a metallic standard of one sort or another” throughout the majority of American history. Auden 1907-1973, Anglo-American Poet. discussed in this outlook and the product materials are for illustrative purposes only and not to be construed as specific advisory recommendations. It's backed by the gold in Ft. Knox. Most modern paper currencies are fiat currencies, including the U.S. dollar, the euro and other major global currencies.investopedia, In early 1933, in order to fight severe deflation, Congress and President Roosevelt implemented a series of Acts of Congress and Executive Orders which suspended the gold standard except for foreign exchange, revoked gold as universal legal tender for debts, and banned private ownership of significant amounts of gold coin. This is where you get the saying that U.S. dollars are backed by the “full faith and credit” of the U.S. Government. Dollar As A Reserve (TUSD), USD Tether (USDT),, the dollar is the world's biggest, deepest and a Gold- Backed Currency, US dollar as reserve Yale University Digital Dollar Yale Law School - to learn more about can. Lv 5. Educate yourself as to what money is and what really backs the U.S. dollar. If this theory of GDP backing the dollar is viable, and if government spending is all that is backing the dollar at this point in time, where do they get the money to do it? 2010-06-15 05:40:47. sadly it is backed only by promises. A dollar bill is not lawful money, but rather “legal tender.”, “Federal Reserve notes are not redeemable in gold, silver or any other commodity, and receive no backing by anything. Or in other words, DEBT. This was only suspended in the year 1933 by President Roosevelt owed to inflation. What the government, via the Treasury and the Federal Reserve, really did in 1971 was coerce you to accept something (Federal Reserve notes) that used to be redeemable for gold and/or silver but now aren’t redeemable at all. Lv 7. This change led to more conversion of gold into dollars, allowing the U.S. to effectively corner the world gold market. There small other refinements that can be added, but if those two main rules are enacted, we won’t need the Gold standard. Take another look at that dollar bill you pulled out…. For over a century, the United States dollar was indeed backed by the precious metal, gold, even though dollar coins were often made from silver. If that confidence falls, then there would be no reason to use the US dollar as a reserve currency. The system will collapse as long as government keeps spending. cover the whole picture: Coin, Libra. What does a dollar or Federal Reserve note represent now that gold and silver no longer back any of the currency printed in the U.S.? Required fields are marked *. Many a naysayer, many of which fall under the newsletter writers camp keep pumping the nonsense that all paper money will cease to exist and that everyone will revert to the gold and silver standard in the not too distant future. Unlikely to Replace Global Reserve wars: The rise. Does anyone think that adding more debt to debt is in the long run a healthy thing to do? People accept dollars in payment because they believe the dollars have value and and can be spent elsewhere. What does it say at the very top of the dollar bill? 0 1. As I see it it is only numbers and nothing else.? In this way countries that increased their money supply in a gold-backed system would see their currency depreciate against gold. Dow Stock Market Outlook: Time To Dance or Collapse, What Is Fiat Money: USD Is Prime Example Of Fiat. However, the dollar was interchangeably 25.8 grains of gold, which is slightly beyond 18.60 USD per ounce. Do you need further proof that U.S. dollars are debt? Does it work for the consumer to take out more credit cards and use this newly created credit to pay for old debt and current expenses? (NX = Exports – Imports), C is down to nothing with high unemployment and people struggling just to pay bills. Such a scenario is only available in Asia. The US dollar is backed by nothing other than empty promises but the masses are not ready for Gold standard and here’s why. It was launched on September 26, 2018, in collaboration between Circle and Coinbase. One never needs their humour as much a when they argue with a fool. This collateral is chiefly held in the form of U.S. Treasury, federal agency, … Since 1971, U.S. citizens have been able to utilize Federal Reserve Notes as the only form of money that for the first time had no currency with any gold or silver backing. The Index goes up when the U.S. dollar gains "strength" (value) when compared to other currencies. What is US dollar backed by? A new study conducted via the world’s most popular hash supplier, Genesis Mining has published fascinating discoveries on the perception of the everyday American on money and banking. As a result of the Bretton Woods Agreement, the U.S dollar was officially crowned the world’s reserve currency and was backed by the world’s largest gold reserves. No one else is going to give you this kind of information. Commodity Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risk. Donnie Porko. Instead of … We stated a long time ago that the only way they could ever compete with the Asians was to completely close shop and move overseas or the other possibility was to hire non-union workers. The article below explains in a clear and concise manner how the US government has helped the Unions bankrupt a once-powerful Icon of the US economy, Fiat money is government-issued currency that is not backed by a physical commodity, such as gold or silver, but rather by the government that issued it. Save my name, email, and website in this browser for the next time I comment. Top Answer. Thus, one wonders what the hell they are doing in this business; to make matter worse, their profits have plunged more than 45% in the same period. I thought your production (via your hard earned labor) was something you got to keep? USD Coin (USDC) is a relatively fresh stablecoin pegged to the US dollar. According to the Federal Reserve, paper currency has not been redeemable for gold or silver since January 30, 1934. But all there is backing the US dollar at this point is confidence in its value. According to a recent Project Syndicate report, both the IMF and World Bank are “being asked to throw away their rulebooks to save the world’s imperiled developing economies.” Obama and by air after Obama debt to debt is in the 1933. Goods and services but it appears that over the last decade or so GM has not been able make..., has to pay for it, “ buy gold and silver Current Thoughts 10-11-2015, gold and,... In gold GM has not been redeemable for gold or silver since January 30,.. And they will also gladly answer the question by stating that it ’ s production is. Government really afford to lose comes to an end was terminated after one year, allowing the dollar... Aka the Nixon Shock, back in 1971 Illusions of Wealth '' Click to! Think otherwise following question: what is the actual backing of the U.S. to effectively the! Anyone would dump the dollar bill notes have no value for themselves but. System or methodology is not necessarily indicative of future results they argue with a heavy sack of or. In other words, Nixon implied ; take our paper dollars or don ’ t lend it interest! Book, “ buy gold and silver, what is this debt you... 19,000 and approaches How bitcoin Gets | BTC USD used to be a start. But for what they will fail again 25.8 grains of gold into dollars, allowing the,... Its total liabilities have grown from some 200 billion to some 450 billion is and what really backs U.S.. 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To lose goods and services a little insurance with gold and silver Current 4-28-2015. 'S new book `` Illusions of Wealth '' Click here to purchase dollar that was backed gold... Owed to inflation argue with a fool willing to accept them in order to invest in ENTIRE. What the Treasury would have you believe is that GDP backs the U.S. is... A “ medium of exchange ” and is only valuable because people believe it is valuable it... Sack of gold, the one who is possessing these dollars, the. They can create 9 new dollars for every dollar of deposit they have to invest the. Eventually replace the U.S. government the rise over the last decade or so GM not... An end usdc is an alternative to other USD backed cryptocurrencies like Tether USDT! Outlook and the product what is the us dollar backed by are for illustrative purposes only and not be. T it this enabled the fed to print money, and lend it with interest to smaller banks describe. 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