The point is that, unlike gold, dollar (or any fiat currency for that matter) has no intrinsic value, only the value we give it in our minds as average of our greed and fear.
Exercise for the reader:
take a look at this plot [1] and this plot [2] and guess which year US government stopped using gold standard for dollar.
Gold doesn't have intrinsic value either, except for it's industrial value. Gold's value as a currency is also "only the value we give it in our minds as average of our greed and fear."
Be fair; that Consumer Price Index rise also corresponds to the beginning of consumerism. Lots more changed than just a currency basis. That was probably the least important?
Gold doesn't have intrinsic value either, except for it's industrial value. Gold's value as a currency is also "only the value we give it in our minds as average of our greed and fear."