Why the Dollar’s Era of Dominance May Be Coming to an Abrupt End
April 6, 2018 By Jon Henschen, Intellectual Takeout There was a monumental event that occurred on March 26 that came and went with little fanfare but has huge implications for our everyday life. On that day, China began trading Petroyuan Futures in competition with the Petrodollar Futures. To fully understand the context of this event, it helps to go over what has historically backed the US dollar. From 1792-1843, the United States monetary policy was founded upon a bimetallic dollar, convertible to either gold or silver. With the start of the Civil War until 1879, the United States, even though still committed to a bimetallic dollar standard, was functionally on a silver standard. Between 1870 and 1879, countries like France and Germany embraced gold monometallism, ending the coinage of silver in 1873 in...
