Sunday, March 25, 2007

Some interesting facts

1. The year of 1971 :
I never knew the year of 1971 was such a significant year. It was 1971 when the U.S. government (led by Richard Nixon, the president by then) abandoned gold standard. From there on the dollar became just a piece of paper. It could no longer be guaranteed to be exchanged to gold. Apparently Americans have been buying too much of goods from Japan and Europe, and Japanese and Europeans were exchanging dollars for gold from the central bank of the U.S. (Federal Reserve) The U.S. Government by then didn't like their gold leaving the country, so they decided to abandon the gold standard. Was it a smart decision? Probably not, because it gave them a power to print money as much as they want.

2. From Washington (1789) to Clinton (2000) administration, a total of $1.01 trillion dollars were borrowed from foreign governments and finacial institutions.(how many 0's are there in a trillion, by the way?)
Between 2000 and 2005, the Bush administration borrowed the total of $1.05 tirllion dollars.

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