Why are currencies not backed by gold?

Before 1914, our global monetary system was based on the classical gold standard. The dollar was backed 100% by gold.But in 1914, the monetary system changed into a Gold Exchange Standard, in which the dollar was only partially backed by gold. read more

First of all, I think you are really asking why the US money supply is not “backed” by gold, since currency only accounts for maybe 10% of the US money supply. Most of the US money supply consists of entries in electronic databases. read more

This means that roughly 4.46% of US dollars in circulation are ‘backed’ by gold, the rest backed by false promises and goodwill. In the UK, the government’s Exchange Equalisation Account shows 9,971,000 troy ounces of gold on the books. read more

The US dollar has value because it is the global reserve currency of the United States, the world's most powerful nation with the largest economy, along with the Federal Reserve and the US Federal Government are all behind the currency. read more