Do you know the history of banking? Do you know that the USD is the worlds reserve currency? Do you know that all other countries currencies rely on the value of the USD to back their currency? Do you know that the US went off of the gold standard in 1971 when Nixon took us off of the gold standard? As the worlds reserve currency, when we went off of the gold standard, all of the worlds currencies became fiat currencies. In short, if the USD became worth 11.3 cents over night, all of the worlds currencies would decline to the same degree. Think about what you are saying. You are saying that if the worlds reserve currency, which is currently backed by nothing, was to become backed by gold, that its value would decrease?????????????? You are also saying that somehow all of the worlds currencies would be able to somehow ignor the value of the US dollar which is the only thing backing thier own currency????????????? Regardless of how the value of the dollar would change, all of the worlds currencies would change roughly to the same degree.
Reserve currency doesn't mean what you think it means. Most of the world decoupled their money from the U.S. dollar more than 30 years ago. Now the value of each nation's money is set by the market. Some governments, like China, use the power of their central bank to manipulate the exchange rate of their money, but that only works to a limited degree.
If the U.S. unilaterally devalued the dollar by nearly 900% most nations that trade with us would eventually have to follow, but not until they used their gold reserves to by U.S. property and goods at fire sale prices.
I don't think that confiscation would work because they can't confiscate all of the gold in the world. With that being said, I suppose that they might try - - - - they have done alot of stupid things before! Check your history. They tried this once before and it didn't work out for them very well.
As I stipulated, if the U.S. unilaterally went back to gold backed money, the rest of the world wouldn't need to follow. And yes, the U.S. confiscated gold in the 1930's and it worked very well for over 45 years until we came to our senses and got off the gold standard.
