The US dollar hasn’t been backed by gold since 1971, but that might change soon. Republican Congressman Alex Mooney is proposing that the US once again place value on the dollar by backing it with physical gold. The problem is, the Federal Reserve has been printing money with the abandon of a drunken copy machine, and the 147.3 million ounces of gold being held in Ft. Knox may not be enough to cover the out-of-control fiat currency currently in circulation.

According to Alex Mooney’s bill, the dollar has decreased 30 percent in purchasing power since 2000. It has lost 96 percent of its value since 1913. On an average, the US is devalued by 50 percent every generation.

The Federal Reserve – silently robbing you of your purchasing power ever since 1913… RETWEET if you agree. 🔥🔥 pic.twitter.com/DoXw2fmKGt — Gold Telegraph (@GoldTelegraph_) March 29, 2018

If the gold standard were to be reinstated, control of the dollar would revert to free market forces instead of the whim of the Federal Reserve. It would mean that each dollar would have its equivalent in gold, as it did prior to 1913. At that time, the US economy grew at a robust annual rate of 4 percent compared to an average annual growth of 2 percent since 2000.

Officially, the US has 8,133.5 tons of gold in reserves, although the government won’t confirm that number. No one is permitted inside the various vaults to verify. Even the purity of the available gold bars is in question, as many may not conform to industry standards. As other countries contemplate the return to the gold standard, unless the US catches up, the dollar will lose its dominance as the world reserve currency.

China launched its oil futures-backed Petro-Yuan in March.

The oil industry has revolved around the petrodollar since the 1970s. It is expected that the Petro-Yuan will take up to $800 billion worth of trade from the petrodollar. Currently, the petrodollar secures global demand for the dollar. For the US, the petrodollar translates into tremendous purchasing power. China’s Petro-Yuan may change all that.

China is the largest crude oil importer in the world, and that may give it enough leverage to unseat the US dollar when it begins to pay Saudi Arabia for its crude in Petro-Yuan. This provides an opportunity for oil exporters to bypass the current powerful petrodollar arrangement. If this happens, it could mean serious trouble for the US dollar. The value of the dollar is heavily dependent upon US oil imports. If oil exporters become dependent on the Petro-Yuan instead of the petrodollar, it could be the death blow for the dollar. In addition to the Petro-Yuan, China has been quietly building up its gold reserves for years and may have plans to ultimately back the yuan with gold.

President Trump has been discussing tariffs on Chinese imports while attempting to persuade Beijing not to use its crude oil contracts as a means of trade. China is unlikely to agree to this, thus opening the possibility of a nasty trade war between the two countries.

China has much to lose in a trade war. Its economy is overly dependent on exports to the US. Also, the Petro-Yuan is, as yet, an unknown quantity, while the petrodollar has been securely established for decades. In addition, the US is less dependent on oil than China, as it is able to produce more oil for its own needs. While China’s oil futures are a wakeup call to the US, they are still a dice toss.

Additionally, Germany is another country that is rediscovering the value of gold. The Deutsche Bundesbank has recently recalled $28 billion worth of gold previously stored in New York and Paris back to Frankfurt.

The National Bank of Hungary has called back 100,000 ounces of gold back to its Budapest reserves in an effort to strengthen its own market. Other central banks have followed suit. There is a global interest in keeping gold reserves close to home in the event of upheaval in the geopolitical situation.

At this point, it is unknown whether Congressman Mooney’s bill to reinstate the gold standard will pass. What is certain is that the global interest in gold continues to take off. In bettor’s terms, gold is the last ace in the hole for global currency stability.