It's not clear how gold owned by the US's central bank (the Federal Reserve) tra... | Hacker News

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		hollerith 8 months ago \| parent \| context \| favorite \| on: 'We Currently Have No Container Ships,' Seattle Po... It's not clear how gold owned by the US's central bank (the Federal Reserve) translates into prosperity for the average US citizen.

insane_dreamer 8 months ago [–]

Not these days, but back then it did because the US dollar was backed by gold, so more gold meant the Fed could increase the money supply without devaluing the currency (==inflation).

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