When will Dollar collapse as the world reserve currency?

[Kasz216]

Mr Khan said:

S.T.A.G.E. said:

 

People cannot pay their debts because of inflation, fractional reserve banking, outside borrowing, and excessive printing. There is no boogeyman and faith is not the best thing to focus on when you have a currency. This country's currency was built on the notional of reserve notes backed by gold, silver and whatever we truly had. If we didn't have money, well too bad. The second we gave up everything to the bankers they put us all in debt up to our ears for years to come.

The only thing gold backing does is make it that much harder to have a flexible currency. Fiat is simply more stable.

Who even operates on the gold standard anymore? India might, i think, though that's showing their weakness.

Nobody operates under the gold standard anymore.

That said, there are some currencies you could consider "Gold backed".

That is their countries keep a significant amount of gold relative to their currency.   Switzerland s a good example.

Really every country keeps some gold as backing for this, but countries like the US have let it slip as low as 2%.

 

I think what you might be confusing with India, is just that they are considering selling some of their reserve to avoid defaulting on loans.   Even possibly going so far as basically turnng the countries banks into a "Gold for Cash" scheme to get some of that gold off the market, since India leads the world in gold demand, and i want to say private gold ownership.

 

India is actualy a good sign of the advantage of a gold backed reserve as it had the gold to avoid a default in 1991.  (As humilating as using that gold was.)