It also creates the potential for the Fed to (mistakenly) provide opportunities for arbitrage between the official gold price and the interest rates set by the central bank.

FORBES: Stop The Madness: Make The Dollar As Good As Gold

The actual Bretton Woods system failed because the Fed did not manage the size of the monetary base so as to keep the free market price of gold equal to the official price.

FORBES: Stop The Madness: Make The Dollar As Good As Gold

The first is that the price of gold has been rising even though official inflation is low.

ECONOMIST: Economics focus: Heading for a fall, by fiat? | The

For the past 34 years, gold has just kept up with the official figures for inflation, albeit gyrating wildly above and below the Consumer Price Index.

FORBES: The Optimum Asset Allocation to Gold Is Always Zero