bretton woods 2 called for by europe, page-9

Yep Big, you're right.

Brettton Woods agreement made the US$ the reserve currency of the world. In doing so, the US$ was gold backed (and US$ were redeemable in gold)and the other major currencies were tied/fixed to the US$.

This gave the US a massive advantage, since international trade contracts based on the US$ and the USA could print these at will.

Unfortunately, they printed too many and De Gaulle started to exert France's right to have their US$ holdings converted to/redeemed for US gold. This was a problem for the USA, since there were more US$ redeemable for gold than the USA had gold to redeem them.

As a result, in August 1971, Pres. Nixon closed 'the gold window' and the US$ could then not be redeemd for anything, simply used as a currency of trade. Unfortunately it was and still is the reserve currency of the world, and the USA has made great use of this fact by simply printing more and more and more of them.

They, like all other major currencies, are now purely 'fiat' - ie made a currency by decree of government. Fiat currencies have value only while the people believe they have value. They have no intrinsic worth in themselves.

In the history of man, all fiat currencies have eventually become worthless.

Got gold?

bye

dub




cheers

dub