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https://web.archive.org/web/20221114011419/https://andrewleahey.com/its-a-wonderful-lie-that-movie-misled-us-about-money/ https://web.archive.org/web/2022111401
by shash 4y ago
https://web.archive.org/web/20221114011419/https://andrewleahey.com/its-a-wonderful-lie-that-movie-misled-us-about-money/ https://web.archive.org/web/20221114011419/https://andrewlea...
“ Since the United States came off the gold standard formally in 1971 – that is to say, after that there was not gold bullion worth one dollar backing every dollar bill.”
Wasn’t Breton-Woods already a fractional system? I don’t think there was ever $1 in gold for every $1 USD…
- cliftonk 4y agoYes, it was fractional (in the sense there wasn’t enough gold to redeem), but the peg held. Economies grow much faster than gold reserves! The US still has the most gold in the word by a vast margin.
- IntFee588 4y agoThe Federal Reserve Act had the original reserve requirement at 40% IIRC (as in, what the fed needed to keep). Current reserve requirements: https://www.federalreserve.gov/monetarypolicy/reservereq.htm https://www.federalreserve.gov/monetarypolicy/reservereq.htm