Only for the international bankers, not the good little citizens as ownership of gold was declared illegal in 1933 by the same idiot that gave US Socialist Security. Better know as the Bretton Woods agreement of 1944, it established the dollar as the world reserve currency with a valve of 1/35 ounce of gold. In 1933 gold was $22 an ounce until all the good little citizens turned their gold in then it rose to $25. In 1971 due to what was termed stagflation, Nixon started floating the dollar at 1/38 of an ounce then 1/42 of an ounce which started a run on the US gold reserves. It wasn't until 1973 that Nixon pulled the plug on dollars for gold where gold immediately shot to $120 an ounce. I wonder just how much of that gold remains in Fort Knox, none? Oh yeah, Bretton Woods was under the auspices of the United Nations, imagine that.
Isn't it amazing how despite the dollar being directly tied to gold in value, inflation still occurred?
Neither government nor banks have the power to create gold, only paper currency. If gold is valued at $35 and ounce, and the total face value of all the currency divided by 35 equals the amount of gold held in reserve there would be no inflation. Interest on loans and interest on savings is not paid with newly mined gold.
But the dollar wasn't tied to gold except for the international bankers. The good little citizens had no access to gold. With the withdrawal from gold in 1973, it wasn't inflation that stepped in, it was value. Based on the value of the US production, it then took $120 to buy an ounce of gold.
