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Implying the purchasing power in more recent times has gone down due to the dollar being a fiat currency is a misunderstanding
Last I checked, you cant print gold.
Backing a currency with gold or something else doesn't make inflation go away. It may perhaps keep a currency more "stable" in the way that it will force the money supply to contract when there isn't any more gold to issue on and economic systems to go into depression cycles. Our modern inflation problems are from the fact that our entire system is just monetized debt, and that debt is allowed to grow exponentially and not according to the actual production needs of the country. The paper money used in colonial Pennsylvania is a real good example of how fiat money, when introduced into the economy in accordance with production needs, is very stable AND eliminates the predatory debt aspect
Inflation is an expansion of the money supply. Rising prices is a side i Effect of an expansion of the money supply. Debt cant grow exponentially without Fiat. Deficit spending cant happen on a pure gold standard. Gold puts limits on the crooks in office, so they did away with all anchors to gold. Every Fiat in world history has eventually returned to its intrensic value of ZERO. All 600 Fiat currencies. How did Hitler turn Germany around from depression debt and suffering to the most prosperous country in 10 years? Fiat? Or money backed with intrensic value?
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