On the fiftieth anniversary of the Nixon Shock, this article explains why fiat currencies have become joined at the hip to financial asset values. And why with increasing inevitability they are about to descend into the next financial crisis together. I start by defining the currencies we use as money and how they originate. I show why they are no more than the counterpart of assets on central bank and commercial bank balance sheets. Including bonds and other financial issues emanating from the US Government, the individual states, with the private sector and with broad money supply, dollar debt totals … Continue reading →
Πριν από πενήντα χρόνια ο κόσμος άλλαξε. Ηταν στις 15 Αυγούστου του 1971, όταν ο τότε πρόεδρος των ΗΠΑ Ρίτσαρντ Νίξον ακύρωσε τη μετατρεψιμότητα του δολαρίου.