May 22, 08:00 AM

US Dollar Loses 98.9% Against Gold Since 1971; British Pound Falls 99.4%, Euro 98.8% Amid 1970s Inflation and Strong Dollar Era

Since 1971, the US Dollar has devalued by approximately 98.9% against gold, reflecting a long-term decline in the purchasing power of fiat currencies. The British Pound has experienced an even greater loss of 99.4% against gold during the same period, while the Euro would have lost about 98.8% had it existed since then. This depreciation is attributed to key historical events such as President Nixon's abandonment of the gold standard in 1971, oil shocks, wage-price spirals, and loose Federal Reserve policies during the 1970s, which led to inflation peaking at 13.5% in 1980. The era from 1980 to 2007, characterized by a strong dollar policy, saw gold prices struggle to regain their 1980 levels amid falling real interest rates and a bond market bull run. The unbacked and unlimited over-the-counter paper gold market also suppressed gold prices during this time. These trends underscore the persistent decline in fiat currency values and highlight the importance of investing in assets like gold and cryptocurrencies for currency diversification and preservation of wealth.

#US Dollar #British Pound #Euro #Nixon #Federal Reserve

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