What was Richird Nixon thinking?
2007-05-26 16:49:18 · 6 answers · asked by Go For Broke 3 in Social Science ➔ Economics
Because we were about to run out of Gold. The US had higher inflation than most other countries for several years but had resisted devaluation of the dollar, and foreigners were exchanging dollars for gold. We abandoned the gold standard domestically earlier in the1930's.
2007-05-26 18:24:38 · answer #1 · answered by meg 7 · 0⤊ 0⤋
well since it had been said that the dollar and gold had the same value many foreign countries started getting us dollars and exchanging them for gold. Nixon didn't like that and put an end in the gold standard in 1971.
2007-05-26 17:51:02 · answer #2 · answered by WonderWoman 5 · 0⤊ 0⤋
Could have sworn it was earlier than that... but whatever.
It was changed because it was believed it was dangerous that a currency be based off the price of any commodity. Since the value of the dollar was based on gold, as gold's price rose and fell, the dollar's value went with it. This was considered unreliable, so the gold standard was replaced with a standard based on "trust"(so to speak)
2007-05-26 16:56:10 · answer #3 · answered by Wise_Guy_57 4 · 0⤊ 0⤋
It was a totally misbegotten and ill-thought-out idea, as today's money problems show Imagine how much the dollar would be worth today if it was still tied to gold
2007-05-26 17:05:03 · answer #4 · answered by †Lawrence R† 6 · 0⤊ 1⤋
Have alook at "News & Reports" > "Contributed Commentaries" at http://www.kitco.com
and look for the latest from:
Richard Daughty - The Mogambo Guru.
He explains it all pretty well, though you'll have to look through a few articles maybe..
Here's a link to the latest one
2007-05-26 16:56:37 · answer #5 · answered by Anonymous · 0⤊ 0⤋
for better control over money. gold is discovered everyday which would flood markets with more and more gold.
2007-05-27 17:23:48 · answer #6 · answered by Anonymous · 0⤊ 0⤋