If you brought some IOUs and asked for your gold back would you get the same amount of gold that someone could get for that amount of IOUs when the currency was first founded?
If you brought those IOUs a couple of years before the bank claimed to have "floated the currency" would you get the same amount of gold back then too as you would if you did it when the currency was first founded?
You can get the gold back that is of equal value to the currency, you massive autist. The fact that gold value fluctuates or the mint in- or decreases the amount of gold doesnt change that it is gold backed.
Its just like a share in a company. You buy a share but the value of that share can fluctuate and the company can even create more shares sometimes. But the share is till worth a piece of the company.
Exactly. Saying that money used to be backed by gold is exactly like saying that money is backed by stocks today. Just because you can buy some stocks with your money doesn't mean that the value of your money is backed by stocks because the value of stocks changes
No you fucking autistic moron.
MONEY WAS BACKED BY GOLD, YOU COULD EXCHANGE IT AT THE MINT.
NOBODY SAYS THAT MONEY IS BACKED BY STOCKS.
I'd say it was backed by milk because you could exchange it at the milk store. Leave my thread
lol end yourself
Thats not what backed by gold means. The mint guaranteed you could always exchange it, regardless of the state of the economy. It WAS gold, just an IOU for in the storehouse.
Your stupid example is just like saying chocolate is backed by raw cotton because you can trade them.
You couldn't exchange the IOU for gold at a pegged exchange rate. Just like you can't exchange the IOU for any other asset at a pegged exchange rate. Money was never backed by gold.
Yes, you literally could.
Looks like they issued out IOUs for gold and silver at the same time. The IOUs you got for silver could be exchanged for gold. It's not very gold-backed-like to let people use anything to buy up all the gold in the treasury that is supposed to be stored for the people with gold certificates. That would mean that there were more IOUs in circulation than there was gold in the treasury
That still is a gold backed currency though.