Decades ago the USD was taken off the gold standard and began floating the currency (Australia as well). Essentially the value in our financial system is the tangible item and not the piece of paper.

The micro and macroeconomics theories we have followed have been disproved. I recently wrote a piece on Modern Monetary Theory and the government’s ability to print money with minimal implications. Why governments haven’t admitted to or practice all of MMTs policies is quite simple; politics.