Demystifying the Petrodollar Scheme with Alex Gladstein (WiM082)
The "What is Money?" Show
00:00
The Dollar Needs to Peg to Something, Right?
When the gold standard was abandoned, the dollar needed a source of reservation demand to preserve its position as the global reserve currency. America's substantial control of the world gold supply and favorable balance of payments position provided the leverage to get its way. So post world war too, the government was sitting on, i think you said something like 71 %, at 71 % of all non soviet held gold. All of a sudden, the us. Found itself sitting on top of about 707 hundred million ounces of gold, which realy about 70 % of extent at government gold.
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