US Crisis Recession and the US dollar

The video reviews the correlation between the US dollar and gold.  Up until 1973, the currency was backed by gold.  Once Nixon decoupled the dollar from gold, inflation kicked in and dramatically reduced the purchasing power of that same dollar.  The credit inflation in this country has led to the economic crisis and recession throughout the world.

Under the Bretton Woods agreement, many countries would tie their currency to that of the US dollar which was backed by gold.  Instead of holding US dollar deposits, foreign governments started to exchange dollars for gold, thereby, reducing the reserves in the US.  The abandonment of the gold standard was deemed necessary by President Nixon due to the redemption of gold and the increasing costs for funding the "great society" initiative by LBJ. 

The speaker goes on to discuss the ramifications, in terms of inflation, that have resulted after the gold standard was abandoned.  Consumer purchashing power has dramatically dwindled. 

Tim Ord
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Tim Ord is a technical analyst and expert in the theories of chart analysis using price, volume, and a host of proprietary indicators as a guide...

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