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Breton Woods 3
Breton Woods 3
- BW3 = A move from FIAT to a commodity-based monetary system, where currencies needs to be supported
- With BW3 – The US Dollar is no longer being set as the world reserve currency
- According to Credit Suisse BW3 started in March 2022 when sanctions and freezing of its Dollar reserves started to rain down on Russia for invading Ukraine
- The death of the USD FIAT = The death of the Euro
The Bretton Wood Agreement 1 was established in 1944, when the USD was defined as the world’s reserve currency, where you could hold the US dollar and convert it into physical gold at a ratio of 35$ per 1 ounce of Gold. In 1971, Nixon discontinued the convertibility of dollars into gold and took the monetary system out of the Gold Standard introducing the FIAT system, moving to the BW2.