Bully Magnets presents: Greetings and welcome to bully magnets, yo I'm Reijard and this time I'll talk to you about the Dollar, not so much about its creation but rather of a peculiar moment when this coin became the most powerful of the world thanks to a pact between nations known as the Breton Woods agreement. Our story begins at the end of the second World War, is 1944 and has been called to a meeting for the allied forces in the Mount Washington Hotel in Breton Woods, United States, the call is to attend the Monetary and Financial Conference of the united nations with the objective of regulating the new financial order at the end of the second World War. Yes, it sounds super dense and effect is, so that from now on I'm going to tell you data very concrete, we are talking about more from 44 countries and hundreds of representatives with a crossroads of diplomatic agreements at over time to understand why the dollar was and is the world reference currency, so let's continue.
One of the objectives of the conference of Breton Woods was to create regulation and institutions such as the International Monetary Fund and the World Trade Organization, part of the reasons for the start of the First and Second World War had been partly thanks to the commercial wars and the protectionism of national markets. After the war the idea would be to generate a free world market led by the United States, the currency for world use would be the dollar because of the war the pound Sterling and the franc had asked for their value, it is proposed not to like the negotiators of the Soviet Union who retreated of the table, years later China also would withdraw from this agreement. all the other nations aligned themselves to states united who was the country that had older gold reserves, even England joined to the agreement, although he was not entirely in agreement because the English considered that it was unfair that a country issued the reference currency world rather than an independent body to the nations.
The famed economist Maynard Keynes was the British representative, he proposed a currency that was not directly linked to any country that he called Bancor, that way there would be neutrality for all nations and not like the dollar that could only be issued by Americans because with that there was the possibility of abuse by part of that nation, finally his proposal was crushed by the Americans, but well It would be worthwhile to talk on another occasion about the Bancor and the course it would have taken the world of having been created. Keynes: But those Americans will regret of not having listened to me, their children and their children of your children will live horrors thanks to their arrogant impertinence (and dies) And that claim was historically correct correct, Keynes ended up very annoyed by the arrogance the Americans and threw threats about the mistake they made, then After a couple of years Keynes passed away without to see the development of the plan, although finally the only healthy economy with reserves of gold in the world was from the United States and they could raise the rules of the new economic order world. As a result of the Breton conference Woods the exchange system was established fixed, this means that American banks they promised to exchange an ounce of gold for the price of 35 dollars, plus that the USA was committed to the investment, loans and financial supports like the plan Marshal for the reconstruction of Europe and the containment of communism once finished war.
In the following years this plan made the economies of the world were backed for its gold reserves and the value of this in dollars so in a matter of a decade the world was dollarized, for the first time in the story a coin had a unified value and was identified almost everywhere planet so hundreds were printed of millions of dollars circulating through everywhere. This process generated incredible wealth in the US that began to raise doubts in the middle of the cold war, at the same time during the Vietnam War at the end of the years 50's accounts of the US government showed that they spent a lot more money than they earned the country and this raised doubts about the strength of the value of the dollar. And it was clear that all countries had to pay their debts in dollars when selling services, natural resources, gold or silver, what was a complication while On the other hand, the US only had to print money to spend it just for all over the world, it was then that the president French Charles de Gaulle made a move that would change everything.
Charles de Gaulle: Surely they have the gold Enough to print so much money right? Well, here are all the dollars that France has joined in these years, now please give me my gold. And indeed, by 1965 France initiated a policy to convert all your dollars in gold and take it back to France, this it made a chain effect and more countries started to request gold from the United States Reserve, distrust began to grow and the Americans they took this act as an offense for they the dollar was a service that solved economic to the world.
But that service had a trick, because Americans not only controlled the broadcast of dollars, they also had the army largest on the planet and they used it to contain to the Soviet Union of Allied territory European Union, so blackmail was common towards the European allies so that the dollar out the strongest currency in exchange for not withdraw your army from strategic positions. Finally the constant gold output of the US reserves made the 15 August 1971 Richard Nixon will sign a decree where the gold was dissociated from the value of the dollar, consequently, in fixed value of the currency vanished and with it also the Breton Woods agreement, from that day the value of the dollar became variable and would change daily based on the offer, the demand and regulation of the government of U. S.
However, over time the real reason of that decree came to light and is that with the calculation of the US reserves was that the fears of those who doubted were successful and in the 60's in the gold reserve of the Americans there was only enough metal to support the value of 20% of all the dollars that existed on the planet. Reijad: In other words, the economy American and the dollar were worth less than what was believed and at least during the 25 years that the Breton agreement lasted Woods the value of a coin was based on the false idea of gold reserves, like consequence as of that moment was created the FIAT money that basically are dollars issued by the government without a material value that supports them, but that friends is already another story that has also brought many problems of which I will surely talk to you at another time. So there you have it, Breton Woods, a crucial moment in economic history of the twentieth century, so what do you think The Breton Woods agreement was a scam, it was a necessary evil to reactivate the economy world?
Leave your answers in the comments that I will answer all that are possible to me. It's all for the moment, I'm Reijard, not forget to subscribe and leave a like in this video if they learned something new and see you Until next time, Bye! This video comes to you thanks to the patreons that support us constantly, join and I know part of this great community in Bully Magnets.
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![BRETTON WOODS 🟣 Fondo Monetario Internacional [FMI] y Banco Mundial [BM] 🤑💰](https://img.youtube.com/vi/Seqwj77UaDQ/maxresdefault.jpg)
