There is a critical difference between money and currency. However, many individuals are ignorant of this little but critical difference. People are blindfolded by the traps of fake money. This is the only reason why the rich remain wealthy and the poor remain poor. Try concentrating your efforts on acquiring real assets; you'll be wealthy in no time!

The World is Going to Change...

President Nixon pulled the dollar from the gold standard in 1972, which was a defining moment. This was the exact time when the whole world's economy would see a major economic effect.

Nixon's Influence in converting money into currency

1971 was the year when Nixon changed the "Rules of Money". That year, the US Dollar ceased being money and became a currency. This is one of the most significant changes in modern history yet very few people understand why.

Before 1971, the US Dollar was real money that was linked to Gold and Silver. After that year, the US Dollar became a Federal Reserve Note.

Bretton Woods System

Let's take a closer look at the story of why the dollar ceased being money and was turned into a currency...

WW2 caused almost all the countries huge economic and financial instabilities. Thus, in the closing days of WW2, the Bretton Woods System was put in place to stabilize all the currencies of the world.

The way this system worked was that the currencies were backed up by gold.

This method worked well until the 1960s, when the United States began to import Volkswagens and Toyotas from Germany and Japan, respectively. As a result, US imports exceeded US exports. As a consequence, more gold was leaving the country when it should have been the reverse.

Nixon thus terminated the system, and the US Dollar replaced gold as the world's currency.

Take a look at the chart below to understand how taking the dollar off the gold standard turned the US Dollar into fake money

When a currency is not tied to real money, governments are able to print more of it. This devalues the purchasing power of that currency which leads to inflation(and in some cases hyperinflation)

Take a look at the chart given below to understand how the currency in circulation affects the purchasing power of the US Dollar(currency)👇

Real vs Fake Money

Today, the dollar is a currency. It can go up and down in value depending on the performance of other currencies and many economic situations that may have an impact on it.

In order for a currency to survive, it must be moving or else it dies. Hence, we can say that currency is a vehicle to move wealth from one place to another.

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