History tells us that the real money must be based on the valuable objects, even in the early stage of modern economy, it is also based on the "gold standard" system, because its limited stock and function make it have the function of resisting inflation and fighting against bad currency.

In July 1944, representatives of major western countries established the "Bretton Woods system" at the UN International Monetary and financial conference.

The Bretton Woods system is a gold exchange standard system based on the US dollar and gold. Its essence is to establish an international monetary system centered on the US dollar. Its basic contents include the link between the US dollar and gold, and the fixed exchange rate between the currencies of member countries of the International Monetary Fund and the US dollar. The operation of the Bretton Woods monetary system is closely related to the credibility and status of the US dollar.

Under the Bretton Woods system, gold was effectively abandoned: in order to take care of the US dollar, the exchange of gold was restricted, which restricted the monetary use of gold. At this time, the United States can lie at home like a landlord, just printing dollars, you can buy everything in the world.

Since the late 1950s, with the weakening of American economic competitiveness, its balance of payments began to deteriorate. The successive years of trade deficit and the huge military expenditure of Vietnam War have resulted in a huge fiscal deficit, resulting in a global "dollar surplus" situation. Many countries have sold dollars to exchange for gold, and a large amount of gold from the United States began to flow out. It is hard to resist the debt flow of the US dollar, and there is no sufficient gold reserve as the basis, which seriously shakes the credibility of the US dollar.

By 1971, the gold reserves of the United States could no longer support the increasingly rampant dollar. In August of this year, the Nixon administration was forced to renounce the dollar "gold standard" system of converting 35 dollars an ounce of official price into gold, and implement the free floating of the price comparison between gold and the dollar. The European Economic Community, Japan, Canada and other countries announced the implementation of the floating exchange rate system, and they no longer undertake the obligation of maintaining the fixed exchange rate of the US dollar, and the US dollar no longer becomes the center of currencies of all countries. This marks the total loss of the basis of the Bretton Woods system, which finally collapsed.

Then, the United States played a rogue, announced the depreciation of the dollar