Commentary This year marks the 50th anniversary since President Richard Nixon suspended the convertibility of the U.S. dollar into gold. This began the era of a global fiat money debt-fuelled economy. Since then, crises have been more frequent but also shorter and always “solved” by adding more debt and more money printing. The suspension of the gold standard was a catalyst to trigger massive global credit expansion and cement the position of the U.S. dollar as the world’s reserve currency, as it de-facto substituted gold as the reserve for the main central banks. The level of global debt has skyrocketed to more than 350 percent of GDP, and what’s mistakenly called “the financial economy,” which is the credit-based economy, has multiplied. The gold standard imposed a limit on the monetary and fiscal voracity of governments, and suspending it unleashed an unprecedented push to increase indebtedness and the perverse incentive for …
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