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This all started when the dollar stopped being indexed on gold
by ekianjo 3y ago
This all started when the dollar stopped being indexed on gold
- slikrick 3y agookay, now explain how those things are in any way related to what's going on
- ekianjo 3y agogoing downhill does not stop
- CuriousCosmic 3y agoNot really. The divergence only became meaningful in the 80s which corresponds closer to Reagan's economic reforms and the massive chilling effect on unions that occurred in that period (ex: the 1981 PATCO strike and Reagan's subsequent retaliation).
- jedberg 3y agoWe had inflation before the 1970s.
- WalterBright 3y agoThe divergence happened in 1914, starting the very next year. That divergence reached 2:1 around 1929, and (as always happens when currency is inflated while being pegged to something else) a massive correction occurred (the banks collapsed). The response by FDR was to make it illegal to trade dollars for gold. Then for decades there was the absurd fiction that the dollar was pegged to gold, but of course nobody was allowed to make such a transaction. This continued until the 1970s when that ersatz pegging was repealed.