Discover and read the best of Twitter Threads about #ustdepeg
Most recents (1)
#LFG & #USTDepeg drama reminds me of the 1968 Collapse of the London Gold Pool (LGP)
Global Central Banks attempted to peg the price of Gold, and failed miserably. USD 'survived', but the peg died.
🧵 Let me tell you a story of arrogance & collapse...
1/
Global Central Banks attempted to peg the price of Gold, and failed miserably. USD 'survived', but the peg died.
🧵 Let me tell you a story of arrogance & collapse...
1/
In 1944, at Bretton Woods, the world powers agreed to use the US-Dollar as the "anchor" currency for all global trade.
Put simply: all currencies would have a fixed-convertibility to the USD (w/ some room for error) & in return, the USD would be pegged to gold at $35 per oz
2/
Put simply: all currencies would have a fixed-convertibility to the USD (w/ some room for error) & in return, the USD would be pegged to gold at $35 per oz
2/
This was great in theory. The price-fixing allowed for easier trade and trade-relations.
But there was still a free-market open... and free-market forces will eventually win out.
3/
But there was still a free-market open... and free-market forces will eventually win out.
3/
