Christian Message Boards: The U.S. fiat dollar

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Posted by WildB (Member # 2917) on :

hum?The Coming Global Enslavement To Digital Currencies? https://www.prophecynewswatch.com/article.cfm?recent_news_id=4621

The Rise & Fall of Bretton Woods

Being victorious in WWII and possessing the overwhelmingly largest gold reserves in the world (around 20,000 tonnes) allowed the U.S. to reconstruct the global monetary system with the dollar at its center in what was known as the Bretton Woods international monetary system. Simply put, the Bretton Woods system was an arrangement whereby a country’s currency was tied to the U.S. dollar through a fixed exchange rate, and the U.S. dollar itself was tied to gold at a fixed exchange rate. Countries accumulated dollars in their reserves to engage in international trade or to exchange them with the U.S. government at the official rate for gold ($35 an ounce).

By the late 1960s, exuberant spending from welfare and warfare, combined with the Federal Reserve monetizing the deficits, drastically increased the number of dollars in circulation in relation to the gold backing it and, naturally, this caused countries to accelerate their exchange of dollars for gold at the official price. The result was a serious drain in the U.S. gold supply (20,000 tonnes at the end of WWII to around 8,100 tonnes in 1971, a figure supposedly held constant to this day) so, on August 15, 1971, Nixon officially ended convertibility of the dollar for gold to halt the gold outflow. The U.S. defaulting on its promise to back the dollar with gold ended the Bretton Woods system.

The central justification that the gold–backed dollar had provided as to why countries held the dollar in their reserves and used it as a medium of international trade was now gone. With the dollar no longer convertible into gold, demand for dollars by foreign nations was sure to fall and with it, its purchasing power.

https://www.munknee.com/u-s-dollar-will-collapse-upcoming-event-happens/