- Wikipedia: Nixon Shock
On 15. August, 1971, US President Richard Nixon lifted the dollar’s attachment to gold (Nixon shock), as agreed in the Bretton Woods System.
With the onset of the post-war boom, the longest period of growth that capitalism had experienced until then began. As a result of the Vietnam war, the US defence industry received another boost.
For the many war fronts in the world, the US had to produce so much war equipment and sell it to a wide variety of parties that the amount of gold reserves was not enough.
It was only a matter of time until the gold reserves were no longer close to the amount of money in circulation.
France called for its gold reserves in 1965 and 1966. Other investors followed. Richard Nixon pulled the emergency brake and said goodbye to the Bretton Woods System and there was no gold exchange guarantee anylonger.
Asa consequence, the FED (US MoneyMonarchy) was now able to print as many dollars as needed to debt the world.
From now on, the dollar was only worth the paper. But nothing critical happened. That was due to the fact that all the world assumed that the dollar still had its purchasing power everywhere, because the US has a strong economy and a strong military.
Gold was now traded freely. The dollar rapidly lost its value compared to gold.
In 1973, the bond of other currencies with fixed exchange rates to the dollar was also released. Over the next few years, the dollar has been devalued several times against other currencies.