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Foreigners could still demand gold for Dollars until that date. The US wasn't able to fulfill that promise due to exploding debt caused by the Vietnam war. The French tried and sent warships to New York in order to pick up their gold. If other countries followed suit, the gold reserves would have depleted completely. When Nixon looked in the empty vault he knew the gig was up. As long as you can actually get the physical gold from the party with the printer, then the system can't just run amok, because there is always someone who will call you on your bulls#$%. Clearly it was not 100 % backed, but the system can work, as long as there isn't a run on the bank, like there was in 1971. In 1971 the USA was on the Bretton Woods system, USD was 40% backed by gold. This move by Nixon screwed over most European countries that traded with US. The USD was like holding gold, until the music stopped. The majority of Americans buy American made products. Fast forward 50 years literally nothing is made in America anymore In 1980, the US was the world’s largest exporter of finished goods and the world’s largest importer of raw materials. Now, they’re the world’s largest importer of finished goods and world’s largest exporter of raw materials. And now gas is $4.90 a gal in CA... Fed is still at it today with fiat money printing. Gas was .36 cents per gal 8/13/71 Also.. FWIW: This also allowed for the unlimited funding of the Democrats Welfare State we have today. Otherwise known as Johnsons Great Society.
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