There was a gold standard. Current fiat money in the US is based on an imaginary “base” that the Federal Reserve (itself, an institution notoriously based on an imaginary base). There is a reserve of gold, but it no longer matches the amount of minted coins/printed bills.
Yes, thanks for clarifying. I typed it out that way because “reserve” was in my head for the remaining sentences. As we both noted, there is a reserve, but it doesn’t back all the minted fiat.
There was a gold standard. Current fiat money in the US is based on an imaginary “base” that the Federal Reserve (itself, an institution notoriously based on an imaginary base). There is a reserve of gold, but it no longer matches the amount of minted coins/printed bills.
Edit: reserve->standard as noted in a reply
You might be confusing gold standard with gold reserve. Fort Knox is definitely a thing. We have a gold reserve.
Yes, thanks for clarifying. I typed it out that way because “reserve” was in my head for the remaining sentences. As we both noted, there is a reserve, but it doesn’t back all the minted fiat.