When did the USA stop the Gold Standard? Since the removal of the US gold standard in 1971, the middle class has been dying in slow motion.
Inflation is at record highs; no one wants to work anymore, nobody is getting married, and for the first time, we have a younger generation that’s not doing better than their parents.
Spoiler alert: If the middle class falls apart, the country falls apart. So, what went wrong here? 1971. That’s the year we can trace all our problems back.
America Became a Super Power After Gold Standard Removal
Here are the atrocities that happened after 1971…Inflation went from 4% to 12% by the end of the 70s. Average household debt increased because buying a house rose faster than household income.
And suspiciously enough, college tuition began to rise after 1971 as well
The United States wasn’t always the head honcho of the global economy. They only recently seized that position after World War II, when an agreement was drawn up between 44 nations that established the U.S. dollar as the world’s reserve currency, which would be pegged to gold.
This event was called the Bretton Woods Conference.
After Bretton Woods, most currencies around the world (e.g., the British pound, Euro, Ruble, etc.) were pegged to the U.S. dollar to smooth over world trade and boost the post-war recovery. In one fell swoop, America became the number one superpower capable of controlling the global economy like a marionette.
The upshot is everything went well for the rich 1% and sh*t for the bottom 99%.
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Wealth inequality went wild after 1971
“Power corrupts, and absolute power corrupts absolutely” — Lord Acton
After the Vietnam War, the US was in major debt. It didn’t matter. We were the world reserve currency and held the keys to the global economy. The US was like a cheating banker in Monopoly: they could hand themselves as much money as they wanted without asking permission.
This pissed the rest of the world off, as you might imagine.
Endless money printing devalues everyone’s individual holdings, so the world wanted this system to end. The first was France, which actually sent a battleship to New York Harbor to get their money returned to them in gold, not US dollars.Then something crazy happened.
President Nixon said, “f*ck you, France.” Ok, he actually said “no” and canceled the ability for anyone to exchange their US dollars for gold. Nixon called this a ‘temporary’ measure.
It wasn’t temporary.
This quietly turned our economy into a giant fraud. The Federal Reserve was able to print infinite money, create inflation, and keep wages the same while decreasing the dollar’s value.
Well, that’s your brief history lesson for the day. If you want to learn more, subscribe to the 99Bitcoins YouTube channel, where we do deep dives like this in full.
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