For the first century of U.S. history the value of the dollar was directly related to the current price of gold. Since gold is a stable commodity and its value is the same all over the world, this gold standard ensured that the dollar would always hold its value on the world market and in relation to other currencies.
Today, with inflation happening at a rate that some find alarming, several states are enacting legislation to bring back the gold standard. Those that wish to do this see the Federal Reserve’s current economic measures as detrimental to U.S. economic health. Watch this video to learn more.
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