Why did Nixon enact policies that effectively ended the gold standard (i.e. the coupling and convertibility of the US dollar to gold) in 1971, effectively turning the international monetary system away from precious metals towards fiat money? What is the significance of that event in the development of contemporary capitalism?
The End of the Gold Standard
Jordan Sullivan
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Brody Miller
bump
Brody Walker
I don't know the word for this but the basic idea is that without gold backed money things could be more profitable as they could overcome the amount of gold that there was in the world with ease.
Ayden Reed
The gold standard was effectively ended by FDR, Nixon merely removed the last vestiges of it.
The reason being that fiat currency is more flexible than "precious" metals, giving the state more autonomy in regards to its monetary policy, rather than being fixed on some commodity.
Austin Collins
Because Vietnam and Korea bankrupted the United States and in a certain sense it has been running on fumes ever since.
Jose Sanchez
Pegging US dollars to oil instead of gold means US can print trillions with no consequence.
Dominic Ortiz
The gold standard is paramount to socialism. Only useful idiots or outright reactionaries would propose to abandon it.
It was the main reason why the Soviet Union fell.
Asher Peterson
Only if currency speculators don't feel it weakening then the effect will be a major bout of inflation as happened in the 70s and even in 2008.
Xavier Lopez
As long Saudi Arabia is stable, rules OPEC, and pegs its oil to US dollar. An absolute monarchy currently undergoing a fucking political purge. :^)
It'd be a crying shame if someone were to put a bullet in the heir apparent.