The base of this article is this post (#407290) written by @kr some hours ago...

So...we know what happened in 1971... but I wonder why it happened...

Let's start in 1913, when FED was "created". Why FED was created? Because before, in 1860's in USA it exist more than 8000 different currencies "descentralised" and they did not communicate with each other, and in this way it was impossible to synchronise a whole economy. So, the real reason to create FED it was to synchronise and stabilse the economy of USA, by creating a common currency ($$$). FED released it the US dollar, valid for the entire united states. This was in 1913...in 1914 the first world war began and ended in 1918, followed by a serious pandemic period (Spanish flu ü IDK if this is the correct name). After 1918, FED printed a lot of $$$, because it was a high demand. This caused a fast rising in the USA economy, followed by a faster crash. (btw...I think we are in the same situation right now)... 1 (look footnote). This crash was named "The big depression" in 1929. After a major and unsustainable economy rising (because of war, pandemic and money printing), a crash was predictable... in this period the actual monetary system was changed radically / completely / excentric (your choice what do you call it). Btw...it was a crash of 86% on S&P index. This new financial system did not depend on the gold standard. In 1933 was created "The Securities Act", and was clarified how companies to be independents and publics, to from IPO's, and to allow larg publicly to invest, and this way to develop stock market. BUT...in the same time, it happened an other, very important act...The Gold Reserve act. In 1934, the US government prohibited for all US citizens to own gold, as store of value. This was, because FED want to monopolise the gold reserve, to have absolute control about, and to be able to "export US dollars". And practically here, the US governemnt abandoned the gold standard, because a domestic gold standard can't be scalable,it was very hard to carry the gold, to make international tradings based on gold, etc... It was necessary something, who can "travel" more faster than the gold...this was the real reason USA resigned the gold standard, and started the "fiat standard" in USA (not international). What does it mean? Fiat money was not "gold backed", and citizens was forced to sell their gold to governemnt for $20. After this, US government maded a "reprising" of gold at $35 => practically government it devalues the paper money what citizens was obligated to own instead of gold => value of their money was decreased with 70%. So...the gold reserve was abandoned, and a new bank system was adopted, called Fractional Reserve Banking.

After the 2nd world war, in 1970's ' 1980's the gold standard was abandoned internationally. Why / how happened this? After the 2nd world war, the countries who owned gold, and functionned under the gold standard, they sent their gold to the USA, because it was much safer. It was a fear in Europe of an other world war, and to not be stolen. For their gold, receives US dollars, and in this way was "created" an international trading with US dollar (btw...this is one of the important causes that today the US $ is the "global reserve money").

And...finally we arriwe in 1971, when US president Richard Nixon declared officially the abandon of gold standard in international plain. This mean countries who sent gold for the USA, can't readem they gold based on actual dollar value, this gold becomed "unreademable", because the "relationship" between gold and dollar was ceased.

After this announcement, the price of gold started to raise incredible faster, from 35 to 890 dollar (around 25x => 2455%). This caused a horrible inflation, maybe worst than in 1920's.

So...in my opinion, these was the real causes to abandon the gold standard internationally.

I think that's all I wanted to share with you in this article. Please, don't hate me for my grammatical (an in general for my english) errors...some tachnical terms was translated by my best friend, google translate, and I'm sure he's not perfect either.

Any suggestions, ideas about article, opinions are always welcomed!

Thanks for reading