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<p>[QUOTE=&quot;rodeoclown, post: 1325989, member: 34005&quot;]You need to read up more on our American History, on April 25, 1933 the United States and Canada dropped the gold standard to back their money. It&#039;s all faith based now which don&#039;t get me wrong, is a bad way of doing it but they don&#039;t back money by gold or silver any longer. The Fed Reserve might still have gold and precious metals but our current paper currency is no longer dependent on precious metals backing them.</p><p><br /></p><p>Also the Nixon Shock ended the direct convertibility of dollar to gold.</p><p><br /></p><p><a href="http://en.wikipedia.org/wiki/Nixon_Shock" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://en.wikipedia.org/wiki/Nixon_Shock" rel="nofollow">http://en.wikipedia.org/wiki/Nixon_Shock</a></p><p><br /></p><p>The bottom line is, our paper currency is no longer backed by gold reserves. Banks or the federal reserve are no longer necessary to reserve gold to back money. They still have gold, they still include it in their checks and balance sheets but even if they did use our gold to back our currency, they wouldn&#039;t have enough to do so at current prices. So if the government was lying about the gold at Ft. Knox, it wouldn&#039;t matter in our current setup. Although the backlash of those thinking our money is still backed by gold might create a panic with consequences but probably not as wide scaled as one might imagine.[/QUOTE]</p><p><br /></p>

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