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> In 1971, President Nixon terminated the convertibility of the U.S. dollar to gold. Gold-backed currency seems suboptimal for a country unless you have enough
by cj 3y ago
> In 1971, President Nixon terminated the convertibility of the U.S. dollar to gold.
Gold-backed currency seems suboptimal for a country unless you have enough trust in the government to honor the "backed by gold" guarantee.
- huytersd 3y agoWell there isn’t enough gold in the world. Sure that would just lead to an increase in gold prices but it would be ridiculous, astronomical numbers.
- seventyone 3y agoFrance knew this was coming and converted a sizable amount of dollars to gold. The world lost trust we wouldn't abuse the dollar. We did anyway and then held a gun to their heads by making Saudis push OPEC to only sell oil for dollars. Problem solved for America.