Look at what happened when Nixon closed the window of gold redeemability in 1971, effectively ending the Bretton-Woods Agreement. Central bank reserves surged exponentially, as central bankers printed endless currencies without the constraint of gold backing. This only increased the magnitude of booms and busts of credit and liquidity. This is why we have soaring price inflation, and reduced purchasing power--despite government CPI data suggesting otherwise. With stagnant wages and sagging economies, coupled with rising cost of living expenses, the average citizen suffers from a reduced standard of living. This is what causes social unrest.
3 years ago