The Shrinking US Dollar

The U.S. Dollar has been the flat currency of the world since President Nixon took the U.S. off the gold standard in 1971. Fiat currencies are not backed by any physical assets such as gold and silver, but rather derive their value from the credit of the issuing government and its promise to pay. Thus, paper currencies are often vulnerable to global market instability, political uncertainty, frivolous government spending, and most recently the irresponsible increases of money supply through various central bank policies including quantitative easing and government bailouts.