US Dollar Depreciation & the Return of American Exporting
By JC Collins
This article was originally posted on August 6, 2015. The Trump Mandate part of the title was added to reflect the stated positions of the Presidential Candidate and how certain aspects of those policies are aligned with the process of unwinding Bretton Woods. Such early policy indicators as having EU countries take on more of the funding responsibilities of NATO, others countries participating more than the US in their own defense, and reworking existing trade agreements, are all aspects of unwinding Bretton Woods, which was centered around using the USD as the international reserve asset. – JC
The Bretton Woods monetary framework has been segmented into opposing eras. One era began in 1944 when the USD was established as the international monetary unit used to balance trade. This period lasted until 1971 when the Nixon Shock removed the gold standard component of the original Bretton Woods and set the stage for Bretton Woods 2, which began in 1973.