It's not that the saw price went up, it's the value of the U.S. dollar went down. (And in the big picture, most currencies around the world went down in value, and taxes went up.)
Lets say for sake of this example all the gold the world has is judged to be worth $5. Bob has that $5 of gold and puts it in the bank. The bank loans out the $5 as paper currency and charges $1 interest, so $6 is owed--where's the other $1 come from? That's the ponzi scheme most banking systems run on, and why not all people can't pay back their loans.
The bank decided they're not making enough money on that scheme, however the U.S. government has pet projects, so the U.S. government wants to borrow $5 from the bank, which the bank doesn't have because that $5 dollars beyond what is already loaned out doesn't exist. The government allows the bank to print $5 more of currency so they can loan it to the government, but the government has to pay $1 interest on the $5. HOWEVER, there's now $12 in circulation but only $5 of gold, and everyone owes the bank. Now realize the Federal Reserve is the "Federal Reserve Bank of America" which is a privately owned bank, not owned by Americans, and that's pretty much how most banks operate.
