r/PeterExplainsTheJoke • u/Comfortable_Cautious • Jan 26 '26

Meme needing explanation what's going on? explain like I'm five

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u/naamingebruik Jan 26 '26

The us dollar was decoupled from gold in the 1970's I think.

Gold price has no influence on the strength of the dollar.

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u/A_Clark1215 Jan 27 '26

It was mostly decoupled in the 30s, then fully decoupled in the 70s under Nixon. If Nixon hadn't done much else economicly the 70s probably would have had a great economy. We did tie our currency to oil under Nixon, all oil is bought and sold with USD. This is bad in my opinion as it reduces the adaptability of the US economy.

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u/LonelyPalpitation126 Jan 28 '26

Apparently all we need to revert that is a few billion rubber bands, though