For a while now, I've been playing with the idea of the US going back to the gold standard. From what I've learned in economics class lately, money backed by gold is much more stable than fiat money. So I did some researching to try to see how feasible going back to the gold standard would be. A specific plan I had in mind was to define the value of a dollar as that of a gram of gold. This would make a dollar twenty times as valuable as it is now, so to compensate for this, either 95 percent of our money would have to be taken out of circulation, or new-looking money (not necessarily new currency) would have to be printed and the old money totally depreciated. Unfortunately, going back to the gold standard wouldn't work as smoothly as I hoped it would. There are $760 billion in circulation as of 2005 (a lot of it is overseas), but we only have $162.7 billion worth of gold in reserve as of this February. So it seems like there simply isn't enough gold. However, I figured out that in 1995, there was about half as much money in circulation as there is now: $380 billion. I'm sure the dollar has inflated since then, but I don't think that the 1995 dollar had much more purchasing power than the 2005 dollar. This leads me to believe that we don't really need $760 billion. Therefore, it seems to me that we might be able to cut down the amount of money we have in circulation so that it all represents 50 to 70 percent of our gold reserves. Why leave extra? This would enable us to make more money when it's needed. One reason we went off the gold standard was because the president at the time, FDR, wanted to put more money into circulation to help get us out of the Depression – something he couldn't do if there wasn't enough gold to back it. This would all be a very drastic change, yes, but is it feasible? Or do I not know what the fuck I'm talking about?