Why was the gold-backing of $USD discontinued during the Nixon presidency?
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At that time international trade could still exchange dollars for gold, even though the tie in the domestic economy had ended. That meant there were effectively two prices for gold in dollars. One price was the local economy price, the other price was the international price. Because of inflation the local economy price was higher than the international trade price. That meant people wanted to buy gold at the fixed exchange price and the US gold reserves were declining.
Nixon ended the ability to trade dollars for gold for everyone.
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