Homepage / Bullion Investment Basics: Bullion Glossary / B - Bretton Woods


Bretton Woods
System of Monetary Management





Bretton Woods is the name of a resort town in New Hampshire, where the International Monetary Conference was held in July of 1944.

bretton woods nh

The conference consisted of 730 delegates from all 44 WWII Allied nations for the United Nations Monetary and Financial Conference. 

The delegates deliberated during July 1st thru the 22nd in 1944 and signed the Agreement on its final day.

The planners hoped to avoid a repeat of the debacle of the 1930s, when the United States, as a creditor nation, insisted on the repayment of allied war debts from World War I.

Combined with the threat of isolationism, this led to a breakdown of the international financial system and a worldwide economic depression.

Governments of the 1930s used currency devaluation policies to increase the competitiveness of a country's exported goods.

They did this to reduce their growing deficits, instead it worsened other nations monetary systems. This caused plummeting national incomes, shrinking demand, mass unemployment, and an overall decline in world trade.

Bretton Woods Resort, New Hampshire

The Bretton Woods system of monetary management established the rules for commercial and financial relations among the world's major industrial states after World War II.

The system was the first example of a fully negotiated monetary order intended to govern monetary relations among independent nations.

Those attending the conference set up a system of rules, institutions, and procedures to regulate the international monetary system, establishing the International Monetary Fund (IMF) and the World Bank.

After ratification in 1945, these organizations became operational.

The chief features of the system were an obligation for each country to adopt a monetary policy that maintained the exchange rate by tying its currency to the U.S. dollar's value to the price of gold. 

The IMF was established to bridge temporary imbalances of payments.

By the early 1960s, the value of the U.S. dollar against gold and under the system of fixed exchange rates was seen as overvalued.

In the 60's, there was a sizable increase in U.S. domestic spending from the Vietnam War and President Lyndon B. Johnson's "Great Society's" programs of Medicare, Medicaid and the "War on Poverty."

These policies gradually decreased the value of the U.S. Dollar against gold, causing currency markets to become greatly unbalanced.





Free Bullion Investment Guide
Thanks You for Visiting!






My name is Steven Warrenfeltz, I created this guide to give you an honest place, on the web, that provides reliable bullion market information.

This guide is a little unusual to other guides because it not only offers bullion market information, it also advocates for Gold Nanoparticle Cancer Research, and supports individuals who are Battling cancer

A few decades ago, I made a graveside promise to a childhood friend who died of cancer that I would help those who are battling cancer.

I created this guide to help people understand how precious metals help them preserve the value of their savings and or investments while trying to fulfill a promise.


Go to this guide's Mission page for more information.



bullion vault
Affiliate Ad




gold bullion

The End of the Bretton Woods System

On August 15, 1971, President Nixon unilaterally announced a temporary suspension on the convertibility of the dollar to gold.

An attempt to revive the fixed exchange rates failed, and by March 1973 the major currencies began to float against each other.

As a result, the Bretton Woods system officially ended and the dollar became a 'fiat currency,' backed by nothing but the guarantee of the government of the United States.

The 1971 event is known as the "Nixon shock" and the official end of the gold standard, which made the United States dollar the reserve currency for the member states.

Since the collapse of the "Gold Standard", IMF members have been free to choose any form of exchange arrangement they wish except when governments peg their currency to gold.

This allows currencies to float freely, pegging one currency to another currency or a basket of currencies, adopting the currency of another country, participating in a currency bloc, or forming part of a monetary union.







Articles that Further Discuss the
Bretton Woods System

This first article is an Audio File from the Library of Economics & Liberty, it is an interview with Benn Steil of the Council on Foreign Relations.  He is the author of 'The Battle of Bretton Woods' - (click the link to hear the audio) - Benn Steil on the Battle of Bretton Wood


Here is a article from the Bullion Vault that discusses The Bretton Woods Gold Standard System.
BullionVault - How Did Bretton Woods Work?

In this last article, James Rickards discusses the Bretton Woods Agreement before and after it was created.

Daily Reckoning - The Dollar Will Die with a Whimper, Not a Bang
- by James Rickards




More Pages You May Like...




Engelhard Bullion

Engelhard


cancer research






Return from the

Bretton Woods page

and go back to

the Bullion Glossary page


or

For the Best Bullion Market News...


Visit the Homepage














Free Bullion Investment Guide




search

   Search the Guide

search engine by freefind





PayPal, Debt, or
Credit Card



Gold Nanoparticle Cancer Awareness Ribbon of the Free Bullion Investment Guide

This Guides Gives
1/2 its Earnings
to Individuals
who
are Battling Cancer
through

 
The Angel of Healing Cancer Fund

Archangel Raphael The Angel of Healing

Who is the
Angel of Healing?

The Archangel Raphael



This Guide's Contributions to those Battling Cancer

$5,521.00

Next Ledger Entry 04/15/2020

Last Ledger Entry 03/15/2020


Donations Spreadsheet





Time-line of Who this Guide has Sponsored

2012 - 2020








recent guide updates

Bullion News on the Homepage

updated - daily

(except Saturdays)



03/22/2020

vBlog Post

Has Gold and Silver Found Bottom?...

Maybe

gold to silver ratio



03/14/2020

Video Post

Silver and Gold Price Analysis (XAG/USD and XAU/USD) - 03/09 thru 03/20/2020




03/15/2019

Ledger-Spreadsheet

&

Ledger/Journal




New

4th Quarter - 2019

Bullion News & Charts




Update

2020

Austrain Philharmonic Gold, Silver & Platinum Bullion Coin

Images

austrian bullion



Updated

2020 Australian Bullion Coin Images




Updated

2020 Australian Silver Kookaburra Bullion Coin

Images




Updated

2020 Australian Silver Koala Bullion Coin

Images




Update

2020

America the Beautiful - 5oz. Silver Bullion Coin Images

America the Beautiful



New

Gold Nano Blog

Gold Nanoparticle Cancer Research Report  #13




Continuously Updated

Cancer Awareness Information & Resources page

Cancer Awareness Gold Nano-Ribbon