In The Bretton Woods Agreement One Ounce Of Gold Was Set Equal To

In 1967, there was an attack on sterling and a gold blow in the sterling area, and on 18 November 1967, the British government was forced to devalue the pound. [34] US President Lyndon Baines Johnson had a stark choice between introducing protectionist measures such as travel taxes, export subsidies and budget cuts – or accepting the risk of a “gold rush” and the dollar. From Johnson`s perspective: “The global supply of gold is not enough to make the current system viable – especially since the use of the dollar as a reserve currency is essential to create the international liquidity needed to sustain global trade and growth.” [35] The United States has put in place the Marshall Plan to provide significant financial and economic assistance to the reconstruction of Europe, largely through subsidies rather than loans. The member countries of the Soviet bloc, for example. B Poland, were invited to receive the subsidies, but obtained a favorable agreement with the COMECON of the Soviet Union. [31] In a speech at Harvard University on June 5, 1947, George Marshall, U.S. Secretary of State, said: Reserve slice (gold): 25% of the quota was paid to the Gold Fund ($1944). Today, this must be paid in SDRs or in large currencies ($, , and Yen). In the 1950s, the USD increasingly took on the golden function as the main international reserve asset. The change in the value of the dollar in the form of gold has no real effect, as parities of other currencies were linked to the dollar. That`s the problem with money.

This problem would not have existed if most of the other currencies had been linked to gold. However, none of these currencies were related to gold because it could not be converted to gold. (limited supply of gold) No one has foreseen this development. The United States was the dominant world power. (U.S. production share: 50% in 1950, 40% in 1960, but has remained stable at 25% since the 1980s). Well over half of international financial transactions were financed in dollars. In 1940, the United States also owned about two-thirds of the world`s official gold reserve. In May 1971, West Germany left the Bretton forest system. Switzerland cashed in $50 million for gold. In early August 1971, France sent a warship into New York Harbor and received US$191 million in gold (Huffington Post).

On August 11, 1971, the British ambassador requested the cashing of $3 billion for gold (1/3 of the U.S. Gold Reserve, Tyler Durden), as President Nixon (copy) announced on August 15, 1971: the architects of Bretton Woods had devised a system in which exchange rate stability was a priority objective. But in an era of more activist economic policy, governments have not seriously considered permanent interest rates, modelled on the classic gold standard of the 19th century.

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