Title: I will pay you $1,000 Source:
[None] URL Source:[None] Published:Sep 26, 2008 Author:me Post Date:2008-09-26 08:56:48 by Itisa1mosttoolate Keywords:None Views:324 Comments:13
if you can prove that the United States Dollar is backed by gold and/or silver.
All the Treasury needs to do is use paper and ink and printing presses to make "money."
The dollar has not been backed by gold since August 1971 when Nixon closed the gold window. However, we have not been a pure fiat currency since then, because we instead went to a de-facto "petrodollar standard". This is why it's been so important to keep every petroleum exporting country accepting our dollars for their oil. When Saddam took started accepting euros for oil, we had to demonize him and ultimately invade Iraq. Now Iran is accepting euros for their oil, and guess who we're going to attack next?
So long as the NYMEX in New York and the IPE in London take dollars for oil, and they handle the vast majority of oil transactions, the dollar has something backing it. The moment that falls apart, the dollar will revert to its true value, which is basically the value of the paper its printed on.