SAILING WITHOUT AN ANCHOR!
by Puru Saxena
Editor, Money Matters
June 16, 2006
RECENT HISTORY – Up until the early 1970’s, our planet followed the Bretton Woods agreement of international monetary management. This system sought to secure the advantages of the gold standard without its disadvantages. The US dollar was linked to gold at the rate of $35 per ounce of gold and other nations pegged their currencies to the US dollar. At this fixed rate of US$35 per ounce, foreign governments and central banks were able to exchange dollars for gold. Bretton Woods established a system of payments based on the dollar, in which all currencies were defined in relation to the dollar, which was itself convertible into gold. The U.S. currency was now effectively the world currency, the standard to which every other currency was pegged. As the world's key currency, most international transactions were denominated in dollars.
( Full story here )
Editor, Money Matters
June 16, 2006
RECENT HISTORY – Up until the early 1970’s, our planet followed the Bretton Woods agreement of international monetary management. This system sought to secure the advantages of the gold standard without its disadvantages. The US dollar was linked to gold at the rate of $35 per ounce of gold and other nations pegged their currencies to the US dollar. At this fixed rate of US$35 per ounce, foreign governments and central banks were able to exchange dollars for gold. Bretton Woods established a system of payments based on the dollar, in which all currencies were defined in relation to the dollar, which was itself convertible into gold. The U.S. currency was now effectively the world currency, the standard to which every other currency was pegged. As the world's key currency, most international transactions were denominated in dollars.
( Full story here )
posted by Oil Shock at 6/21/2006 07:03:00 PM
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