If you look at page 453 and 490 of the 2009 Annual Financial Report of the Federal Reserve (CAFR) you will see there actually is collateral held against Federal Reserve Notes. This means the money we use is backed by something.
(LINK – http://www.federalreserve.gov/boarddocs/rptcongress/annual09...)
What is it backed by?
There is the Gold Certificate Account (The Fed has the gold and the Treasury has the certificates.)
How much gold?
$11,037,000,ooo. Worth of gold. This can also be found on page 61 of the Federal Government’s CAFR.
(LINK - http://www.gao.gov/financial/fy2010/10notes.pdf)
How many (troy) ounces (of gold) is backing the Federal Reserve Notes? On page 62, the last paragraph reads:
“Gold is valued at the statutory price of $42.2222 per fine troy ounce.
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