everything wrote:I have a really hard time understanding macro economics and "money". It seems more understandable than taijiquan, but not really, lol.
Thought the clip explained very well..
Fiat money is a government-issued currency that is
not backed by a commodity such as gold.
From 1944 to 1971, the Bretton Woods agreement fixed the value of 35 United States dollars to one troy ounce of gold.[28] Other currencies were calibrated with the U.S. dollar at fixed rates. The U.S. promised to redeem dollars with gold transferred to other national banks.
Trade imbalances were corrected by gold reserve exchanges or by loans from the International Monetary Fund (IMF).
The Bretton Woods system was ended by what became known as the Nixon shock.
This was a series of economic changes by United States President Richard Nixon in 1971,
including unilaterally canceling the direct convertibility of the United States dollar to gold.
Since then, a system of national fiat monies has been used globally, with variable exchange rates between the major currencies.[29]
The US dollar, the reserve currency that everyone uses starting after the second world war.
In the 70s no longer tied to gold...
As long as other countries agree that it's worth something it continues to be.
The problem, the US weaponized the currency, enabling it control over other counties, based on it's own interest.
What happens when other countries no longer use the dollar, or use their own currencies something that they have control over.
Notice the sanctions put on Russia, so that none of them affect the other countries tied to Russias energy or food.
Think about it, the sanctions intended to destroy an economy, that still produces items needed by those imposing the sanctions to destroy it