50 years after the death of the gold standard and the start of financial speculation

Fifty years later, the US currency remains the queen of the foreign exchange markets, but it is increasingly threatened by the forces of emerging economies.

Your direct “competitor”, the euro, after being attacked by speculation also because of the weakness of the coordination of European policies, did not affect the prestige of the American currency.

Oil and gold are always measured in dollars, despite the fact that certainly during the last decades, the axis of the economy seems to be shifting more and more towards Asia.

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Pixabay

The 1970s, after the White House decision, thus presented themselves on international markets with a first financial earthquake, which will be followed by many others over the past 50 years: oil shocks of 73 and 79 to monetary system crisis. policy in 1992, to lead to a new infinity generated by subprime mortgages, after the bankruptcy of Lehman Brothers. This crisis resulted in a long recession and the sovereign debt crisis.

Last year, moreover, the pandemic caused not only a planetary health emergency, but also a serious global crisis.

Nixon’s announcement was just the first step towards the infallibility of the system, while the financial crises of the 90s put the system directly into question.

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Gentileza: Wanderglobe

And the instability recorded for more than ten years on the markets did the rest with the risk of terminating the entire implementation. “western” of the system, at least in its current form.

Indeed, in the past, the decline of another “golden” currency, convertible par excellence, the pound sterling, it has given way to new forms and new centers of organization of markets and currencies.

A whole setting up of an international organization is now put to the test by closures and restrictions, and by brakes on international trade, and the indicators for the coming months on the evolution of infections and the recovery in phase acceleration will tell if it can be said that this collapse is over.