by Jeff Berwick
The US government, bankrupt yet again after another disastrous war of aggression, had its back pushed to the wall in 1971.
Up until that point, foreign central banks could redeem US dollars directly with the US Treasury in exchange for gold. And, recognizing that the US was essentially bankrupt, foreign central banks, especially France, began to demand gold instead of the dollar.
And then, on August 15, 1971, Richard “I’m Not A Crook” Nixon announced the monetary shot heard around the world.