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**Avgustslim** · 01-12-2009, 03:33 PM

[B]Jan 9, 2009
Panic could herald dollar rout

Although there are many parallels between the current crisis and the crash of 1929, one key difference is the global profile of the US dollar. In 1929, the dollar was on the rise, and would soon eclipse the British pound sterling as the world's reserve currency. Furthermore, the American economy was fundamentally so strong that in 1934 America was the only major nation able to maintain a currency tied to gold.

According to http://en.wikipedia.org/wiki/Nixon_S...n_Woods_system The USD no longer pegged with gold.

In 1971 Nixon unilaterally canceled the Bretton Woods system and stopped the direct convertibility of the United States dollar to gold. The second shock was the 1972 Nixon visit to China that brought a surprising new twist to Cold War diplomacy.

01-12-2009, 03:33 PM	#4
Avgustslim Join Date Oct 2005 Posts 446 Senior Member	[B]Jan 9, 2009 Panic could herald dollar rout Although there are many parallels between the current crisis and the crash of 1929, one key difference is the global profile of the US dollar. In 1929, the dollar was on the rise, and would soon eclipse the British pound sterling as the world's reserve currency. Furthermore, the American economy was fundamentally so strong that in 1934 America was the only major nation able to maintain a currency tied to gold. According to http://en.wikipedia.org/wiki/Nixon_S...n_Woods_system The USD no longer pegged with gold. In 1971 Nixon unilaterally canceled the Bretton Woods system and stopped the direct convertibility of the United States dollar to gold. The second shock was the 1972 Nixon visit to China that brought a surprising new twist to Cold War diplomacy.
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