DEVALUATION OF THE DOLLAR.
Under the Bretton woods system established after World war II, the value of gold was fixed to $ 35 per ounce, and the value of the U.S. dollar was thus anchored to the value of gold. Rising government spending in the 1960s, however, led to doubts about the ability of the United States to maintain this convertibility, gold stocks dwindled as banks and international investors began to convert dollar to gold, as a result, the value of the dollar began to decline. Facing an emerging currency crisis and the imminent that the United States would no longer be able to redeem dollars for gold, gold convertibility was finally terminated in 1971 by President Nixon, resulting in