U.S. Still On DeFacto Gold Standard
I have to admit, I too was stunned that the U.S. dollar is still linked to gold. No, you can't trade your dollars in for gold. No, the dollar does NOT say it has any value in gold. But Mary J. Miller (Assistant Secretary of the Treasury for Financial Markets) argued why the U.S. can not sell its gold to help pay down our debt. Her conclusion:
A “fire sale” of the Nation’s gold to meet payment obligations would undercut confidence in the United States both here and abroad, and would be extremely destabilizing to the world financial system.
WOW! For a group of people who insist we can not go back to a gold standard, that it is out-dated, this must be like eating crow.