How Nixon's 1971 decision ended the Bretton Woods gold standard
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PublishedJune 3 2026Jump to comments sectionPrint this page
A good honest bake. Not flashy, but you'll finish the whole bagel.
Summary
The article explains how President Richard Nixon's 1971 decision to end the convertibility of the US dollar to gold effectively torpedoed the Bretton Woods global monetary system. It draws a parallel between a bank run by depositors and the international pressure from US allies who were losing confidence in the dollar's gold backing. The dwindling gold reserves at Fort Knox forced Nixon to act, ultimately severing the dollar's link to gold and reshaping the global financial system.
Key quotes
· 3 pulledAll the gold in Fort Knox wasn't enough to save the US dollar
In 1971, US president Richard Milhous Nixon faced a similar dilemma.
Instead, it was America's closest allies who were nervously eyeing the dwindling supply of gold in Fort Knox at a time when the dollar's value was tied to gold and allies' currencies were in turn tied to the dollar.
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