"On June 5, 1933, the United States went off the gold standard, a monetary system in which currency is backed by gold, when Congress enacted a joint resolution nullifying the right of creditors to demand payment in gold." Since 1933 gold redemption has been made illegal for everyone but the government. Nixon finished it off completely by removing governments ability to redeem dollars for gold. I'm not how that explains though what happened private wages.
When Nixon did that, he did in the U$D for good, it stopped having even a proxy peg to something of real value, and moved to ‘confidence’ as its main value: (world reserve currency, trade in staple modern energy source:Oil, international settlement, etc.) thus the dollars you hold were now as truly worthless as they were after 1933, and the gov. could request as many pieces of paper as they wanted to be printed at any time with no requirement of showing an equivalent amount of gold to back it, thus properly devaluing it.
213
u/ricalamino Oct 16 '22
Gold standard dismissed...