Comments on: What criteria are used to determined how much gold a country needs to start to hoard up a currency? http://www.myylt.com/2009/01/10/what-criteria-are-used-to-determined-how-much-gold-a-country-needs-to-start-to-hoard-up-a-currency/ Discussion of Forex Trading and Currency Trading Tue, 22 May 2012 05:47:56 +0000 http://wordpress.org/?v=2.3.3 By: mickeykozzi http://www.myylt.com/2009/01/10/what-criteria-are-used-to-determined-how-much-gold-a-country-needs-to-start-to-hoard-up-a-currency/#comment-11028 mickeykozzi Tue, 30 Nov 1999 00:00:00 +0000 http://www.myylt.com/2009/01/10/what-criteria-are-used-to-determined-how-much-gold-a-country-needs-to-start-to-hoard-up-a-currency/#comment-11028 erm...the gold standard was thrown out many many years ago lol erm…the gold standard was thrown out many many years ago lol

]]> By: dis_orient_ed http://www.myylt.com/2009/01/10/what-criteria-are-used-to-determined-how-much-gold-a-country-needs-to-start-to-hoard-up-a-currency/#comment-11029 dis_orient_ed Tue, 30 Nov 1999 00:00:00 +0000 http://www.myylt.com/2009/01/10/what-criteria-are-used-to-determined-how-much-gold-a-country-needs-to-start-to-hoard-up-a-currency/#comment-11029 Money need not be backed by gold. For example, a US $20 bill is a claim on the Federal Reserve Bank for $20. Fortunately, McDonalds will exchange it for Two Big Macs, a large fries and a chocolate shake. Money need not be backed by gold. For example, a US $20 bill is a claim on the Federal Reserve Bank for $20.

Fortunately, McDonalds will exchange it for Two Big Macs, a large fries and a chocolate shake.

]]> By: akihabro13 http://www.myylt.com/2009/01/10/what-criteria-are-used-to-determined-how-much-gold-a-country-needs-to-start-to-hoard-up-a-currency/#comment-11030 akihabro13 Tue, 30 Nov 1999 00:00:00 +0000 http://www.myylt.com/2009/01/10/what-criteria-are-used-to-determined-how-much-gold-a-country-needs-to-start-to-hoard-up-a-currency/#comment-11030 Countries should use gold to back their currency to fight inflation. A lot of countries don't use this method anymore! http://en.wikipedia.org/wiki/Gold_standard Some countries peg their currency to U.S dollars. That means their "gold in the vaults" is actually U.S dollars. They really would be screwed if the U.S dollar becomes worthless. All countries have converted to a fiat system. http://en.wikipedia.org/wiki/Fiat_currency So print away the monopoly money! Basically money currently in use is only as valuable as the paper its printed on. Of course it is widely accepted and will buy a lot more then a 6.14x2.61sheet of cotton and paper would. Countries should use gold to back their currency to fight inflation. A lot of countries don't use this method anymore! http://en.wikipedia.org/wiki/Gold_standard
Some countries peg their currency to U.S dollars. That means their "gold in the vaults" is actually U.S dollars. They really would be screwed if the U.S dollar becomes worthless.
All countries have converted to a fiat system.
http://en.wikipedia.org/wiki/Fiat_currency
So print away the monopoly money!
Basically money currently in use is only as valuable as the paper its printed on. Of course it is widely accepted and will buy a lot more then a 6.14×2.61sheet of cotton and paper would.

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