#How does us end full

TodayвЂ™s time not only bear the consequences of the bad decisions of the past, but at the same time 50 years later find themselves in a very similar economic situation as then. The choppy waters of fiat and the road to safety Moreover, in recent years, wages have stagnated substantially, which, combined with rising inflation, has meant a major decline in living standards and widening social scissors. The generations that grew up under Reagan, Bush, Clinton, Bush Jr, Obama, and even Trump and Biden never knew what it was like to live in a debt-free, worry-free country. If we transfer this to a per capita of the вЂњfreest countryвЂќ, we reach almost 90,000 USD, i.e. Since then, the national debt in the United States has soared to USD 28.6 trillion. It is important to remember that it was this move, popularly known as the вЂњNixon Shock,вЂќ that fundamentally transformed not only the economy but also society. And as Milton Friedman's famous aphorism goes: вЂњNothing is as permanent as a temporary government programme.вЂќ Since then, the dollar has begun to lose value faster than ever before. It soon became clear that NixonвЂ™s appeasement speech was a political ploy, or perhaps just a mistake. Nixon replaced gold with floating exchange rates. So what is this very technical act and what does it mean to you? Let me bury the scarecrow of what is called devaluation,вЂќ he tried to reassure citizens at a conference at Camp David, the summer home of the President of the United States. I have ordered Secretary Connally to temporarily suspend the convertibility of the dollar into gold or other reserve assets, except for amounts and under the terms determined to be in the interest of monetary stability and in the best interests of the United States. Accordingly, I have directed the Secretary of the Treasury to take the necessary measures to defend the dollar against speculators. вЂњThe strength of a national currency is based on the strength of the national economy вЂ“ and the US economy is by far the strongest in the world. This was supposed to be a temporary measure that would not affect the US currency. Therefore, Nixon decided to end the Bretton Woods Agreement and temporarily detach gold from the dollar. Why? Well, a big war asks for big financial support And the Vietnam War was getting it from Nixon, of course, thanks to printing more and more dollars. The system worked well at the very beginning, but soon the situation began to change. All other currencies were pegged to the dollar at a fixed exchange rate and could be exchanged for dollars at any time.

#How does us end full

The US has made a commitment to exchange the dollar in full for physical gold on demand. Under the Bretton Woods Agreement, the US held three-quarters of the gold, and the US dollar acquired the status of the world's reserve currency pegged to gold ($35 was equivalent to one troy ounce). It was August 15, 1971, when the controversial US President Richard Nixon temporarily closed the gold window and the dollar ceased to be backed by the precious metal.