Hi @reapersremorse. You have a good view about fiat money i like it.

As stated in the aggreemnt, one of the absolute power that Fed Reserve have is to control the inflation of all country in the world!
You can see their result today by checking world forex chart. They have a power to controll all currencies!
Today you can buy a sheep, tomorrow you only can buy a wheat FedReserve can do this because they are the one who print the paper money.

You asking what happen if gold falls 10% at price.
What happen if fiat money falls at 1000% or even more?
See a Gold Price chart from last 10 years. Bearish or bullish