The Rise and Coming Fall of the Petrodollar
We’re rapidly approaching the 50th anniversary of the “Nixon Shock” — the day then-President Richard Nixon announced extreme measures to stop our country’s runaway inflation. Among his declarations was that foreign nations could no longer exchange U.S. dollars for a fixed amount of gold. The Bretton Woods system, which had kept currencies more or less in line since 1944, was effectively moot. By all rights, depegging the dollar from gold should have ended its status as a reserve currency. But Bryon King explains why that didn’t happen…