The Bretton Woods Agreement

"JUST AS THE BRETTON WOODS SYSTEM WAS NEVER REPAIRED DUE TO ITS FLAWS, SO TOO WILL IT BE IMPOSSIBLE TO REBUILD THE FLOATING RATE SYSTEM OF THE PAST 27 YEARS. THE SOONER WE ADMIT TO ITS TOTAL FAILURE, AND START PLANNING FOR SOUND MONEY, THE BETTER." - RON PAUL IN 1944, 44 COUNTRIES NEGOTIATED THE BRETTON WOODS AGREEMENT, CREATING A NEW WORLDWIDE MONETARY SYSTEM. BRETTON WOODS REQUIRED COUNTRIES TO ENSURE CONVERTIBILITY OF THEIR CURRENCIES INTO U.S. DOLLARS AT FIXED RATES, WHILE ASSURING THE DOLLAR WAS CONVERTIBLE INTO GOLD AT A FIXED RATE. THIS MADE THE U.S. DOLLAR THE WORLD'S PREEMINENT CURRENCY AND CONSOLIDATED AMERICA'S ECONOMIC DOMINANCE. THE BRETTON WOODS SYSTEM LASTED UNTIL THE 1970S, WHEN THE U.S. ENDED DOLLAR-TO-GOLD CONVERTIBILITY, MAKING THE DOLLAR A FIAT CURRENCY. MANY CURRENCIES TIED TO THE US DOLLAR FOLLOWED THE MOVE TO FIAT. BRETTON WOODS CREATED THE IMF AND WORLD BANK. DESPITE THE COLLAPSE OF THE BRETTON WOODS SYSTEM, THE IMF AND WORLD BANK REMAIN DOMINANT.