Goodbye to the Dollar and Gold, the World Falls into the Black Hole of Debt
On August 15, 1971, Nixon suddenly announced the complete separation of the dollar from gold, an event that was like dropping an atomic bomb in the financial market. The dollar-gold system established after World War II collapsed in an instant, and the whole world suddenly realized — the dollar is just a piece of ordinary paper, relying solely on the U.S. government saying 'trust me.'
Truth Behind the Collapse: The U.S. Went Too Far
At that time, the U.S. was spending wildly on wars (Vietnam War) and welfare, and the printed dollars were already insufficient to redeem with gold. The French were the smartest, directly sending warships to retrieve their gold stored in the U.S., and other countries followed suit, forcing the U.S. treasury to approach depletion. Seeing that the situation was about to be exposed, Nixon simply flipped the table: 'Gold convertibility? We're not playing anymore!'
Three Fatal Aftereffects
The Money Printer is Unleashed: Previously, printing dollars required counting the gold in the vaults, but now it can be printed at will. The government spends money like swiping a credit card, with national debt soaring from 35% of GDP in 1971 to now 120%, equivalent to a family with an annual income of 100,000 but carrying 120,000 in online loans.
Prices Soar: The price of gold skyrocketed from $35 to $850 in 1980, increasing 23 times in ten years. The speed at which ordinary people save money can never keep up with the money printer, making money increasingly resemble toilet paper.
Kidnapping the Global Economy: The U.S. turned around and colluded with Saudi Arabia, stipulating that oil must be purchased in dollars, forcibly turning black gold into a new anchor point. Now 60% of global foreign exchange reserves are still in dollars, but countries are worried — can this IOU still be redeemed?
The Bitter Fruits We Are Eating
Debt Perpetual Motion Machine: The U.S. government now has to pay $3.1 billion just in interest every day, which costs more than military expenditures. In 2024, interest payments will reach $1.13 trillion, averaging $3,400 per American.The Credit is Collapsing: Central banks around the world are frantically dumping U.S. bonds, with China's holdings slashed from $1.3 trillion to $770 billion. The dollar's share of global reserves has fallen below 58%, hitting a 30-year low.Madly Seeking Alternatives: Bitcoin has skyrocketed to over $100,000 this year, and central banks' gold reserves have reached new highs since the Cold War. Anyone with a discerning eye understands: this 'credit IOU' of the dollar is about to become ineffective.
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