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Stagflation brought an end to Bretton Woods

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The arrangement brought forth at Bretton Woods, NH, in 1944 set the value of our US dollar at 1/35 ounce of gold.  Is that difficult to imagine, or what!

FDR's welcome (scroll down) 

Bretton Woods System and 1944 Agreement 

But not thirty years later it all came apart at the seams as stagflation viciously tore into the USA and Nixon and the Fed were unable to cope.  Those stagflation years were among the most difficult economically for America and for many of us personally.

Stagflation 

Nixon's revaluation of the dollar "all the way down" to "just" 1/42 ounce of gold is especially noteworthy.  I dearly wish each dollar I posses today had the purchasing power of 1/42 ounce of gold.  I would be rich almost beyond my ability to imagine!!    

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Stagflation (69.91kB)
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Blogs are free to start at places like wordpress and blogger.
You know you can always store all of your wealth in gold instead of reserve notes if you want. Nobody is stopping you.

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Please send your worthless fiat currency to me. I'll properly dispose of it for you.

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shinobi1, I "greened" this post not because I think we will ever go back to a gold standard, or even that I necessarily think it's a good idea to do so.  However, the story of how the world gradually pulled back from the gold standard, starting in part with FDR is fascinating. 
https://www.bloomberg.com/view/articles/2013-03-21/how-franklin-...

I'm part-way through the book: "Currency Wars: The Making of the Next Global Crisis", which takes this topic from the late 1800's to a few years ago.  (I'm not sure that I buy that such a "crises" will happen, but I find it interesting that the military has added to their menu of "war games" strategy modeling at APL some financial components - i.e., what would happen if China, or Russia, or others, performed a certain action to attempt destabilize the US dollar - how would we respond, etc.  That kind of thing.)
 
In any case, it covers a lot about the history of the gold standard and the dollar, as well.
 
I'm sure you realize that if each dollar you had was worth 1/42 of today's price of gold, well - so would everyone else's!  Relatively speaking, kind of a wash. 
 

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wpgabriel said:   Blogs are free to start at places like wordpress and blogger.
You know you can always store all of your wealth in gold instead of reserve notes if you want. Nobody is stopping you.

Why would you do that when there's bitcoin?

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I missed useful thread like the "FWF Guide to Gentleman's Club"

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