How The US Federal Reserve Can Immediately Back The US Dollar With Gold And Hot Have To Buy It/ Mine It.
The reason the US dollar retains any value with all the fiat printing that goes on incessantly is because it is backed by the labor and productivity of the American people. That is a little on the skids recently thanks to the Covid 19 emergency. Oh for the good old days of a Gold Standard backing the dollar with Gold. Well maybe. There actually may not be enough gold mined on earth to back all the US dollars that the US economy requires for liquidity. That is a big problem . Talk of a renewed gold standard actually seems rather silly because gold backed by US work productivity has worked fairly well . For a lot of people a Gold link would be nice and if ever foreign creditors demanded Gold only in payment it might be nice to have the gold standard . One draw back of gold backing is even a large dominant central bank can run out of reserves. That is what happened after world war 1. China one day might require payment in Gold when it has the dominant position to do so. Another