Article Image
IPFS News Link • Economy - Economics USA

The End Of The Gold Standard: Fifty Years Of Monetary Insanity

• by Daniel Lacalle

The suspension of the gold standard was a catalyst to trigger massive global credit expansion and cement the position of the US dollar as the world's reserve currency as it de-facto substituted gold as the reserve for the main central banks.

Thus, since the breakdown of the gold standard, financial crises are more frequent but also shorter than before.

The level of global debt has skyrocketed to more than 350% of GDP, and what is mistakenly called "the financial economy", which is actually the credit-based economy, has multiplied.