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<p>[QUOTE=&quot;fatima, post: 1226410, member: 22143&quot;]Actually the USA was on a domestic silver standard as the $ was defined as number of grains of silver until redemptions of silver $ certificates were halted 1968.&nbsp;&nbsp; (first default of the $)&nbsp; What changed in 1933, aside from making gold based transactions impossible, was that the Federal Reserve Note was forced into the general economy and traded along side the silver dollar at parity.&nbsp; (I&#039;ll except the US Bank Note for simplicity)&nbsp;&nbsp; The problem that came to a head in the 1960s wasn&#039;t the value of silver.&nbsp; It never changed.&nbsp; What did change was the printing of the unbacked Federal Reserve $.&nbsp; Since these $s were being created at ever increasing rates to pay for Vietnam, Cold War, etc, and FRNs could be exchanged for Silver dollars and Certificates, they had to remove silver from the currency.&nbsp;&nbsp; They did this first by removing it from the coinage, and then halting redemptions of silver certificates in 1968.&nbsp;&nbsp; Nixon broke the final link by refusing to redeem $s for gold, because they were emptying out Ft. Knox to settle the currency imbalance with Europe.[/QUOTE]</p><p><br /></p>

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