Time after time friends ask questions and we gladly answer them! 😉 Welcome back dearest friends from everywhere: the US, Russia, Canada, Australia, Mexico, Brazil, Saudi Arabia, South Africa, India, Philippines, China, Dominican Republic, Ireland, Japan, Czech Republic, and all! 😉
A. and B. didn’t stop their conversation about your money but they discontinue for a moment to give a chance to other friends’ talk.
A.: I still need to know some more about my money or your money in order to understand.
B: Sure, shoot and if I knew an answer I’ll explain.
A: You mentioned that your dollar can be saved how?
B: Before getting to this point, you first need to know the correlation between your dollar and gold. Do you know how it works?
A: Not exactly, I understand that there has to be a reserve for each dollar at the Federal Bank, is this what you aim at? Is money printed based on gold?
B: In a way. Your money was used to be of higher value. You had to back your printed fiat currencies with an equal amount of gold in your reserve up till 1971 after which it was discontinued.
A: What? Discontinued? How about all that ongoing printed money? Does it have no reserve?
B: The reality is that nobody knows. In the past, there used to be a certain amount of gold for each printed dollar and that makes the value of your dollar. Now it lost its value, it has become a print out for the image of your dollar!
This is the simplest way to understand the correlation between your dollar and gold.