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Economists, or anyone, please answer this question.
Submitted by ecorob on Sun, 02/03/2008 - 14:48
I have a question that we may run across later. We know the US monetary system was once backed by gold and silver but now is backed by nothing. Is the Euro backed by anything? How about the Canadian dollar? The peso? The Yen? What, if anything, backs these currencies? Just wondering. Does anyone know? » |
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fiat fiat fiat fiat
They're all fiat. I don't know of any real asset backed currencies off hand. I'd be interested in hearing who still has one.
Gold at fort knox maybe not? It belongs to us not to the Fed Res
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This might answer of lot of these issues
It's too long to copy and paste; so please visit the link:
http://europe.pimco.com/LeftNav/Bond+Basics/2007/Currency+Ma...
Hi, this is actually a very
Hi, this is actually a very astute observation by you and is one of the things my brother brought up as I tried to convince him of the potential economic disaster we face. I'm supposed to be working right now, so I won't verify which currencies do what, but from the top of my head most of the major currencies in the world are not backed by anything. I believe most world economies use a central banking system just like we do, which behaves similar to what we have - so in a way they have the same potential for economic collapse from printing too much money as we do. Australia, I believe, is backed by something like 75% gold so I feel they are on the right track. However, China, I believe is not backed by anything. One of the things that makes our situation so bad is that our economy is not fundamentally sound. We don't really produce anything. Three-quarters of our economy moves simply because people buy things, whereas China actually has workers that work to produce things. This means that our economy can basically blow out like a light bulb if the right conditions exist, which we are getting close to.
thank you, and you recognized my deeper thoughts...
if the world's currencies are, in fact, not backed by anything then aren't they just as likely to fold up as easily as ours? Isn't this just what those heartless, greedy international bankers want? Not just another US depression but a worldwide depression than will usher in their "New World Order"? Not trying to be a blantant conspiracy theorist, although I guess I am, I am just trying to understand where to duck for cover and where to FIGHT!
its 'cos I owe ya, my young friend...
Rockin' the FREE world in Tennessee since 1957!
Yes, you are right. I've
Yes, you are right. I've recently figured out that my work will not be done with the U.S. I want people worldwide to be educated about the benefit of 'the people' by having backed currency versus governments which have a license to run out of control.
No
Fiat currencies are the trend right now. You can thank Keynes/socialism and his ilk. I can't think of a current government that could survive under a gold/precious metal standard.
The closest you could come would be China, I guess, who no doubt owns a lot of gold, silver, and worthless US dollars. But they do not tie their currencies to their holdings, just like we do not tie our currency to the gold that is supposedly in Fort Knox.
But be careful, the idea that Ron Paul advocates is competing currencies. It is not a gold standard per se. It is allowing private banks to issue currency, and they could issue fiat currency, dollars backed by gold, silver, or oil (anything for that matter), but the prediction is that most would tend towards gold as it is the most stable, and has minimal other uses.
thanks for the caution...
yes, Dr. Paul's competing currencies is just a step in the right direction for us.
its 'cos I owe ya, my young friend...
Rockin' the FREE world in Tennessee since 1957!
There are no current, major
There are no current, major currencies backed by precious metals.
"All laws which are repugnant to the Constitution are null and void." --Marbury v. Madison, 5 U.S. (2 Cranch) 137 (1803)
"All laws which are repugnant to the Constitution are null and void." --Marbury v. Madison, 5 U.S. (2 Cranch) 137 (1803)
Euro partially Au backed
10%-15%
suggest reading 'Experimental monetary system'
http://www.dailyreckoning.co.uk/article/260720061.html
I believe the US$ is the standard
When you look at the global financial markets, the other currencies are always "vs. the dollar."
In Asia and I think India, however, gold is purchased, oftentimes as jewelry, and even here in the US it can be used almost like the $ in that the jewelry stores will sell it and convert it at close to market value of gold. So they save their gold pieces as a savings account.
All Fiat
There are no currencies remaining that have commodity backing. However, central banks do keep "reserves" to stabilize the fluctuations in value (against other fiat currencies). Reserves consist of gold, silver, dollars, euro, etc. As far as I understand the reserves of the European Central Bank are 70% US Dollar. Interestingly, the Russian Central Bank has been aggressively decreasing its US Dollar reserves and increasing the % of gold...
UK Gold
Gordon Brown(before he became our unelected Prime Minister) sold 60% of our gold too cheap. The remainder left is probably coating his bath faucets. (Fiat Money) Q/ why is it called 'FIAT'? 'Just asking.
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i think i heard here that fiat means "no thing"...
or...nothing. Thank you for your info, too.
its 'cos I owe ya, my young friend...
Rockin' the FREE world in Tennessee since 1957!
Fiat = Nothing Cars?
-Oh I see now. Perfect choice.
'I always think of all you canvassors and precinct leaders at the front line.
Good luck out there &Thank you. It's appreciated'.-fip
'I always thank of all you canvassors and precinct leaders and delegates who were at the front line and caucuses.
Good luck out there &Thank you. You're a gift.
was wondering
the same thing
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"The essence of freedom is the proper limitation of government". ~ Founding Fathers
Nothing more than
Nothing more than millitaristic or economic might backs them, I believe.
I read that China has the most Gold & Silver
'I always think of all you canvassors and precinct leaders at the front line.
Good luck out there &Thank you. It's appreciated'.-fip
'I always thank of all you canvassors and precinct leaders and delegates who were at the front line and caucuses.
Good luck out there &Thank you. You're a gift.