What Happened to the Bretton Woods Accords?
The next period of interest is late 1944, the Bretton Woods Accords (BWA). The BWA placed the post World War Two world on a US dollar standard with US paper dollars convertible between central banks at $35 for an ounce of gold. It is from Bretton Woods that the American dollar became the “World’s Reserve Currency” and when the International Monetary Fund (IMF) and the World Bank was created to maintain the new dollar standard. After Bretton Woods, gold no longer circulates as money anywhere. All currencies were to be fixed to the new Reserve Currency – the US Federal Reserve created dollars. Bretton Woods was a treaty ratified by the US Senate, thus The Bretton Woods Accords became American law, binding on the “policy makers” of the United States of America. So why can’t foreign central banks convert their US dollar holdings into US gold anymore? Let us now look at my chart plotting US Currency in Circulation and US Gold from 1931 to 1971. I find the above chart absolutely damning, pro
