1944: Bretton Woods Agreement. Post WW2 economists and politicians got together and decided to make the USD the world reserve currency. The dollar was then backed by gold, is if every other currency was pegged to the dollar, they too would be backed by gold via the dollar. This worked well for nearly 30 years.
1971: The US crippled with debt over Vietnam and losing it’s manufacturing base could no longer honour its obligations, president Nixon ‘temporarily’ suspended the conversion from dollars to gold. The USD becomes a fiat currency and the temporary suspension continues to this day.
At first the debasement happens slowly but then gathers pace…. Something needs to be done…. The FED jacks up interest rates under Volcker, and the dollar lives to fight another day
2008 Sub-prime crisis. The banks decide that their demise would be more damaging than the government/FED creating trillions of dollars out of thin air and giving it to the banks…. Hyper debasement, begins. The bankers get record bonuses whilst someone named Satoshi or the NSA thinks that there may be a better way.
2020 After 12 years of pathetically low interest rates, QE, and continued bailouts for those close to the government of the day, the debt has grown so large that even at artificially low interest rates it is not sustainable. A miracle happens…. A new virus from China comes on the scene… No worse than common influenza but a godsend to those in power. All rules can now be thrown out the window, all human rights can be suspended, it is a complete free for all, especially fiscally. Under the guise of fighting Covid anything goes, no lie is too big.