Quote:
|
Originally Posted by lemans
That was the Bretton Wood system. US doesn't back up its money with anything. The fed is a money tree. It prints money from nothing.
|
You're correct. The greenbacks used to be pegged to the value of Gold - but then when foreign countries started hoarding gold - or offering exhorbitant amounts of money to purchase large amounts of gold the old system no longer worked.
Now it's all based on the floating point system - in which the number of dollars in circulation dicate the price. The more money there is running around - the less it's worth.
Case in point: I'll take 3 garbage bags of pesos for 1 hamburger
