The Global Monetary System, Gold and Oil -1971 until the future

In 1971 Nixon closed the gold window on the $ and turned the European nations away from redeeming Eurodollars into gold at the price of $42.35, thus devaluing the U.S. $ by the extent the gold price rose. This was keenly felt in all the markets across the globe because it was a particularly visible blow for the $ and for the sterling as the "$ Premium" was imposed in the U.K. to prevent a wave of capital exiting the country. Shortly thereafter the oil price shot up to $35 a barrel from the $8 level it had happily sat at before. In those days, even with no gold standard, gold was considered the foundation on which paper money stood.

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