Updated: Sep 6, 2021
Written by: F.O., Egypt
Sometimes politicians trick people, but do they think of consequences of their actions or explain to people what they have done? People always seem to realize sooner or later what has been done but what then for the future of their party or the personal future of the politician when the world figures out they have been tricked and the truth appears?
In this example our politician was lying to people in public and on air from the biggest economy in the world and the most famous politician.
This happened when President Nixon, on August 13 1971, suspended with certain exceptions, the convertibility of the dollar into gold after meeting with the Federal Reserve chairman Arthur Burns and Treasury Secretary John Connally at Camp David.
When the USA became an economic giant after WW2, the world became flooded with American products and it rebuilt Europe using the famous Marshall Plan. This time was the golden age of American dollar and products. America itself owned 574 million ounces of gold, which at the time represented more than the half of global gold reserve. Many countries had too many American dollars inside their central banks. When they would ask to transfer dollars into gold it lead to a large reduction in American gold reserves. This trick was done publicly in front of eyes of everyone.
No more converting dollars into gold, countries now had the American dollar guaranteed by USA, and that should be enough. The world had to accept it and none of the countries could do anything about it. After some time, America became the central bank of the entire world and the entire world wanted the USA to continue growing in power, or billions/trillions of dollars in circulation throughout the world would become worthless paper with no value.