In 1941, most countries adopted the Bretton-Woods system, which set the exchange value for all currencies in terms of gold. It obligated member countries to convert foreign official holdings of their currencies into gold at these par values. However, many countries simply pegged the value of their currency to the dollar, thus making the dollar the defacto world currency. Gold was set at $35 per ounce. (Source: National Mining Association)
In 1971, gold was repriced to $38 per ounce, then again to $42 per ounce in 1973. As the dollar devalued, it motivated people to sell their greenbacks for gold. Finally, in late 1973, the U.S. government decoupled the value of the dollar from gold altogether. The price of gold quickly shot up to $120 per ounce in the free market. (Source: Time)
One can only hazard to guess what we would really have to devalue the dollar too the Fed has ignored over the years.
Read the article I linked in this thread...its shocking!! The government isn't interested in fixing the dollar, quite the opposite they are purposely working to destroy it. Meanwhile the G20 is meeting to establish a new world currency to replace the dollar.
Nixon rescinded the US gold standard for international payments when France requested a French loan be paid in gold. That is what precipitated the oil price rise in the early seventies when the US dollar became worthless. The dollar became the world's currency when the US
promised that in exchange for keeping the
Saud family in power for ever, that the Sauds would only sell oil for US dollars.
Oil is what backs the US dollar.
It is more than oil that backs the U.S. dollar....it is also the weapons that we manufacture and distribute worldwide... It is the loop of "foreign aid flowing from the treasury into the bank accounts of companies like Halliburton" that backs the dollar...
There is far more than oil going on..
Oil is only part of it....
Chiquita and Dole don't work with oil...but American dollars and weapons have fueled Central American dictators for over almost 200 years...
What of the Honduran coup a couple years back?
American weapons, American trained Generals conducting the coup, and American real estate interests at stake....
Eaten a banana recently?
I think we can only return to a gold standard once the debt issue is addressed and brought under control. The threat of the world abandoning the dollar as the defacto currency is real and would be catastrophic to the US Economy.
"The threat of the world abandoning the dollar as the defacto currency is real and would be catastrophic to the US Economy." For the US policy makers it is what the revolts in the Middle East are all about. Rather doubt they are encouraging them.
They were getting here on ships powered by the wind long before oil powered ships...
And if there was no oil, we would still be using the wind, which means U.S. weapons and demand for commodity control (whether fruit, coffee, rubber, or natural gas) extends far beyond just oil...
Lets talk about today. Stay focused, the worlds economy is based on OIL. Weapons of old were used to secure it, true. Once it was controlled,OIL was used to multiply and proliferate them. As with nearly every thing you come in contact with on a day to day basis.
Henry Ford built a car made and powered from hemp in 1927. Hemp was made illegal in all states in the early thirties. Now
legal in about three. Of course the world is totally dependent on oil.
Today, it is also based on a vast amount of resources extending far beyond oil... Just look at Afghanistan...the mineral resources beyond oil, including natural gas, justify our reasons for being there..
To continually single out oil is ridiculous..
And, by the way, that Honduran coup was jost a couple years ago... How much more recent could that be?
It was School of America's graduates, especially the Commanding General of the Air Force in that country, that carried out the elimination of the democratically elected Honduran government...
How much oil does Honduras have?
How about El Salvador?
The control of World resources of course is the name of the game. However the value of various currencies is not based on things like copper, iron, barium or coal although shortages of these commodities may affect changes in currency value.
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