Quote from: SebastianJu on March 14, 2016, 05:13:32 PM

Quote from: Rostadom on March 14, 2016, 03:18:32 PM

Quote from: Imran.shamsi on March 01, 2016, 08:29:04 AM

without Backup of Gold reserve government print Dollar then Currency value goes down and inflation increase.

Even with the back up of gold reserves, the currency will still devalue as too many notes are printed. You cannot exchange them for gold.

Huh? Gold reserve means that they only could print as much money as the gold they had in reserves was worth. It was backed by the gold. Only when the dropped that connection they could start to print like they wished.

As far as I am aware of Nixon declared the end of Bretton Woods System in 1971 because the US already printed and exported too much of it dollars around the world. Charles de Gaulle in 1965 was one the first who critized that and exchanged France's dollar reserves for gold.More and more countries asked for exchanging USD for gold over the next years.The rest is history.
So Rostadom is having a point here. The problem is you can not look in the vaults how much gold banks have and how much paper money is in circulation.
That's the beauty of Bitcoin and it's public blockchain.