Putting the World on a Paper Standard
Half a century ago one of the most disastrous monetary policy decisions in US history was committed by Richard Nixon. In a television address, the president declared that the nation would no longer redeem internationally dollars for gold. Since the dollar was the world’s reserve currency, Nixon’s closing of the “Gold Window” put the world on an irredeemable paper monetary standard.
Richard Nixon during his televised speech on the “temporary” closing of the gold window (effectively a debt default). [PT]
The ramifications of the act reverberate to this very day. America’s current financial mess, budget deficits, the reoccurring booms and busts, the decline of living standards (particularly theRead More »