There’s Only One Fix for Inflation: It Has Nothing to Do With the Fed

In 2008, the Wall Street Journal’s Craig Karmin published Biography of the Dollar. In it, Karmin casually observed that prior to 1971, there “was no need for a foreign exchange market because all major currencies were pegged to a dollar rate and could only be changed in unusual circumstances.”

All major currencies were pegged to a dollar that was pegged to gold as 1/35^th of a gold ounce. There’s a lot of information in the previous truth. What it notably tells us is that whatever your view of gold, you can’t seriously deny the remarkable stability as measure of value that gold transmitted to the dollar. What verifies the previous statement is the surge in currency trading since 1971; 1971 when President Nixon severed the dollar’s link to gold.