In current times, our monetary system is in fact based on consumer confidence. We now use what is called “Fiat” money. In reality it isn’t worth the paper it’s printed on. What gives it it’s value is perceived worth. “We believe your good for it”.

In 1974 the President signed legislation to allow the general public to once again own gold. It did not reinstitute the gold standard. It did give people the opportunity to insure themselves against inflation on an international basis, if they purchased gold. Only problem here is, the price of gold is established twice a day on the London Gold market by a group of 5 British gold dealers who meet with the Rothchilds, the City Bank and agree on the price.

It does not elliminate real debit/credit, or equate the national debt to imagination. What it does is allow manipulation of the money market. What is owed today can be inflated tomorrow without having bought anything else.

The Gold Standard was removed by President Franklin Roosevelt in April of 1933 when he ordered the civilian population to turn in all it’s gold coins and bullion or face going to prison. And, the president did this without asking congress to pass a law mandating the action which in itself was illegal. The president is of the Executive branch, not the Legislative.

The gold was turned over to the Federal Reserve System (privately owned and not a government entity at all), at a rate of $20.67 and then the Fed Reserve turned around and valued it at $35.00 per ounce. This allowed the government to put more fiat money into circulation, causing inflation.

Who do you think made the money by recalling the gold? The private banking industry did. Who continues to charge the United States for the use of the fiat money we all use? The Federal Reserve.

I never looked at it that way, I wish it was backed by some real valuable resource.

No, because it’s not imaginary so long as you can exchange the money for something, and you can buy whatever you want given enough money. It doesn’t matter that it isn’t backed by gold or some other resource because it’s backed by any resource someone is willing to exchange for something else.

The “gold standard” was somewhat arbitrary also. I like your question.
Most people actually believe that money is manipulated by a few wealthy families. They can explain the rise and fall in economies and even wars on this theory.
Key to the idea of money is units we can exchange for goods. In reality, anything can be used as money. However, it is easier to carry cash.
The more money your country has on the market, usually the less it is worth.
However, if we ended the Federal Reserve System and allowed Congress to issue money - per our Constitution - we might be in better shape.