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What would it be like if there were no Federal Reserve, and our U.S. Dollar was actually worth $1 in gold?  Today, thanks to the Federal Reserve bank--a quasi-private institution that has controlled the issue of the U.S. currency since 1913, the dollar is actually worth about 4 cents in gold, as opposed to the full value in 1913.  What happened?  Simply put, there is a finite gold supply, worth only a certain amount in cash, since a gold dollar is an actual measurement of grains.  If the Federal Reserve decides that there is a need for more money in the economy, it issues an order from the U.S. Mint to print more money.  So let's say the U.S. has $100,000,000,000 in gold assets.  If there are $100,000,000,000 in printed and coined money in circulation, then a $1 Federal Reserve Note is worth $1 in gold assets.  Let's say the "fed" decides that 200 billion dollars is needed in the economy.  The money is subsequently minted, and now a $1 Federal Reserve Note is worth $0.50 in assets.  Basically put, the more dollars in the system, the less each dollar is worth.  This is called inflation.  The purpose of the Federal Reserve is to control this inflation by responding to certain economic conditions.  Before, the value of the dollar was completely dependent on the fluctuating price of gold.

At any rate, in a world without the Federal Reserve, what would the value of our money be?

If you were part of a working family with an income of $40,000 a year, you'd only be making just shy of $2,000 a year.

BUT

You'd be jamming with your tunes on your new iPod that you decided to spring $17.32 to get the version with the largest hard drive
In order to show the world that you are an ulitmate douchbag, you'll have to buy a Hummer H2, at the wallet-busting price of $2,800
The average house would cost $7,500, while a 14x70 mobile home (how else are you going to afford that H2?) could go for $1,000
An expensive loaf of bread would cost 20 cents, while a cheap loaf of white bread would only cost 5 cents
You'd hit the roof if gas prices reached 15 cents a gallon, costing you an insane $2 to fill up a small car.
NASA would have trouble scrounging up the $12 million it would need to launch a space shuttle
The US GDP would be around $650 billion and the projected cost of the Iraq War would be $100 billion.