3 ms·
USD was last valued in gold in the 1970s, it is a free floating Fiat currency since Nixon took down the Bretton Wood's gold backing. USD is now viewed as oblig
by zeusk 9y ago
USD was last valued in gold in the 1970s, it is a free floating Fiat currency since Nixon took down the Bretton Wood's gold backing.
USD is now viewed as obligations of the Government of the United States which gets its revenue from taxing its economy (a function of GDP) and is secured by the bullets and bombs parent writes about.
- MR4D 9y agoUSD is _currently_ valued in Gold. Roughly 1238 USD = 1 oz of gold. I think you meant "backed" by gold?
- zeusk 9y agoNo it isn't, Gold is valued at 1238 USD per ounce. It is also priced/valued against other major sovereign currencies like the euro, renminbi, yen, aud with enough spread for profitable arbitrage across exchanges when trading hours overlap for Sydney, Hong Kong, Beijing, Mumbai, Frankfurt, London and New York.