TIL in 1944, countries agreed with the US to settle their international accounts in dollars to have gold converted at a fixed rate of $35 per ounce. In 1971, President Nixon announced the US would no longer do it, thus completely abandoning the gold standard. This was known as the ‘Nixon Shock’.

Read more: https://en.wikipedia.org/wiki/Nixon_shock#Background

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  1. It was the 2nd time the United States defaulted on the dollar. The first was in 1968 when they stopped silver redemptions even though they were promised right on the bill.

    At this point the US Treasury stopped issuing dollar bills and the Federal Reserve got exclusive control of the USD and the $ became 100% fiat. Basically the only dollar known today by most.

    Not co-incidentally 98% of all existing US government debt has been created since that day in 1971.

    Tricky Dick did indeed get the last laugh.

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