US Notes are redeemable

[Chex]

Safeway will also exchange your US Notes for face value, in trade for groceries. That is an interesting link to ponder.

You may have spotted already that Congress renaming (bundling) US notes into United States Currency Notes in order to revise Title 31 into positive law is where the dishonesty occurred. In that action (Title 31 USC §5115 - Notes) is where non-reserve currency (US notes) were pegged to the reserve currency (FRN's).

Gold is the stuff myths are made of. "What we have found in our work is that a broad basket of commodities is a better hedge against inflation, a greater diversification and a better hedge against the dollar," gold doesn't offer a stake in a business's results, It doesn't pay dividends or interest. Gold soared in the 1970s amid oil crises.

Michael Cuggino, its president, says gold wasn't the only reason for redemptions; investors have fled bonds and other conservative investments. Some money has returned to his fund since gold began recovering in December.

Still, "when people got concerned about gold in the second quarter of last year, there were more redemptions than previously," he said. He is optimistic about gold but sees the mentality shifting. Investors, he said, are more concerned about returns than protection.

One reason for gold's recent rebound is demand in China and India, where economic worries have risen. http://finance.yahoo.com/news/word-w...081900233.html

Oil, gold and commodities have all been priced in US dollars since 1975 when OPEC officially agreed to sell its oil exclusively for US dollars.

From 1944 until 1971, US dollars were convertible into gold by central banks in order to adjust for any trade imbalances between countries. Up to that point, the price of gold was fixed at US$35 per ounce, and the price of oil was relatively stable at about US$3.00 per barrel.

Once the US ceased gold convertibility in 1971, OPEC producers were forced to convert their excess US dollars by purchasing gold in the marketplace. This resulted in price increases for both oil and gold, until eventually oil reached US$40 per barrel and gold reached US$850 per ounce.

Today, apart from geopolitical threats in oil-producing regions, supply/demand imbalances from Peak Oil and increasing demand from developing countries, the price of both gold and oil can be expected to increase as the US dollar declines.

What is the American dollar based on? I would just like to have an unbiased answer to my question thank you.

There is no backing for the dollar, or any other modern currency. The value of money in the modern world is based on the belief that it has value. This may seem strange but consider that your bank account doesn't contain any actual money, it is just a number that the bank keeps in a computer file. Trillions of dollars, Euros, Yen etc. exist as nothing more than computer records. - milton b

The American dollar is what is called fiat currency and is backed by the full faith and credit of the United States. The currency is essentially a loan from the Federal Reserve, so each dollar comes with a small amount of debt attached. - Archie B.