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WTF Happened In 1971?
(wtfhappenedin1971.com)
So what happened in the 1970s?
I'm going guess it had something to do with the US dollar becoming a fiat currency:
On 15 August 1971, the United States terminated convertibility of the US dollar to gold, effectively bringing the Bretton Woods system to an end and rendering the dollar a fiat currency. Shortly thereafter, many fixed currencies (such as the pound sterling) also became free-floating, and the subsequent era has been characterized by floating exchange rates. The end of Bretton Woods was formally ratified by the Jamaica Accords in 1976.
I swear to God monetarists are so fucking boring let them speak for 5 minutes and they'll explain to you how the end of the gold standard caused the Black Plague or the sinking of the Titanic. I just hate that people will see an enormously complex and subtle subject and reduce it to an edgy hot take then use that take to explain every little phenomenon.
Not saying we'd be better on the gold standard, but fiat currency is literally worthless meaningless paper that has no tangible value.
I wish we could go back to barter n trade, to before currency was invented tbh.
Thing is, fiat currency is exactly as worthless as gold or Bitcoin or pebbles. It's just a unit of measurement so of course it has no tangible value. There's no going back to barter because it is so impractical that any attempt to make it work will be the first step to inventing currency.
this post was submitted on 09 Jul 2023
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