Monetary standards...

[nickshepDEM]

Just curious - Please explain why too.

Under the gold standard, all currency is backed by gold. Under the bimetallic standard, currency is backed by two metals (usually gold and silver). Fiat money or paper money is not backed by anything.

For more in-depth descriptions, see: gold standard, bimetallic standard, and fiat money.

[baldguy]

1. Our money's value is based upon nothing but faith.

Just as it should be.

[eallen]

2. Many people misunderstand money.

If a commodity like gold is used for money, then its value is determined both from its demand as money and its demand as a commodity. Its value as a commodity does not supply its value as money.

[BillZBubb]

3. Is the poll for which standard is the best? Which to support?

In the modern world, the gold standard is by far the worst. Bimetallic is only slightly better. For a modern economy, fiat money is the best if wisely managed. Historically, that has been the major downfall of fiat money--it inevitably gets abused by politicians for short term gains leading to long term disaster.

But now, a powerful check on rampant abuse exists: The international currency markets. This is a better mechanism for controlling currency abuses than any artificial standard like gold.

[FloridaPat]

4. story going around is our money is backed by oil. Our oil, Middle East

oil. All the oil we have our hands on. Then you look at where our troops are deployed. Where the wars with US troops have been for the last few decades. We've been had.

[mmonk]

5. Yep, we forceably are trying

to tie it to oil and counting on it to remain a reserve currency. Our policies of high debt with a massive trade imbalance is working against its sustainability. The requirement of foreign monetary inflow at current rates seems impossible to hold.