Quote:
Originally Posted by NTM
how can a country not have a gold reserve to back up the currency? this is fucked.
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Why should a country back up its currency with the amount of a pretty metal which they manage to keep in a vault somewhere?
Anyway, there is a whole history to this. Read about Bretton Woods and then the collapse of the standard in, I believe, '71. As with most things there are both pro and con reasons for abandoning the standard.