buster at swt.edu
Wed Jul 9 15:02:25 CDT 2003
FDR took the first step in trying to separate the dollar from gold by
changing the value ($1.00 = 0.0483% ounce) to $1.00 = 0.0285% (approximate
values). This was still a gold-standard, but diminished the value of the
dollar and sunk the US into deeper depression. Citizens received $35 per
ounce instead of $20, though were no longer able to trade dollars for gold.
Bretton-Woods (and arrangements following) allowed for other countries to be
fixed to the US dollar, which was fixed to gold, and thus prevented monetary
inflation. With many wars to pay for, LBJ had a hand in starting the
separation from gold, and Nixon took it all the way. Countries who purchased
bonds or traded currency on the faith of the gold dollar quickly lost money
with the end of the gold-standard.
I just finished two economics courses in Summer I and Spring. I do recall
napping a few times, but most of that should be pretty accurate. Here is a
link explaining in more detail:
On 7/9/03 2:06 PM, "Patrick Giagnocavo +1.717.201.3366" <patrick at zill.net>
> On Wed, Jul 09, 2003 at 12:05:19PM -0700, Francisco Javier Mesa-Martinez
>>> I'm not an economist, and only an amateur historian (ancient history) but I
>>> believe there was a lot of furor in the USA in the 19th century over the
>>> decoupling of the dollar from gold.
>> You meant the 20th century :), It was not until the "floating" dollar
>> under Nixon than the dollar was fully decoupled from the gold standard.
> Are you sure? The previously posted link claimed 1933 (FDR, not
> Nixon); perhaps you are referring to Bretton-Woods?
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