Why is the dollar no longer stable?
*Dow Theory Letters, Richard Russell, February 2, 2007
“There’s an old saying — “Money makes the world go ’round.” As far as I know, nobody has ever disproved that old adage. But what kind of money does this old adage refer to? In August of 1971 the world went off the gold standard. That occurred when President de Gaulle of France continued to demand gold to settle its debts with the US. A frightened Nixon announced, “That’s it, no more gold.” With that the US shut the gold window, and overnight the world was on the “fiat money standard,” better known as the big float. From that point on, every currency was pitted against every other currency — there was no center, no accepted standard.
The world fiat money situation has existed for only 35 years, and already under the care of the world’s central banks, its out of control — or as a teenager might express it, its “money gone wild.” Today we’re operating with fiat money that’s only been around for 35 years, and we’re living in the new world of globalism, a world which has really only been around for a decade.”
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