This article is extracted from BullionStar, a Singapore online bullion company where you can buy gold and silver at competitive prices.
On 19th July 2013, Detroit became the largest city in United States history to file for bankruptcy protection after piling up debt of more than USD$18 billion. For more than a decade, the city has been borrowing money to pay for its expenses and fund its expensive pension system. Apparently, the breaking point came about after Detroit failed to reach agreements with the bondholders and creditors to restructure the city’s debt out of court.
People who are familiar with The Federal Reserve’s money creation process would not be surprised by Detroit’s bankruptcy. Since President Nixon decoupled the link between gold and the U.S dollar in 1971, it effectively ended any form of gold peg internationally. Without any convertibility to gold by any currency, governments all over ...
...On 19th July 2013, Detroit became the largest city in United States history to file for bankruptcy protection after piling up debt of more than USD$18 billion. For more than a decade, the city has been borrowing money to pay for its expenses and fund its expensive pension system. Apparently, the breaking point came about after Detroit failed to reach agreements with the bondholders and creditors to restructure the city’s debt out of court.
People who are familiar with The Federal Reserve’s money creation process would not be surprised by Detroit’s bankruptcy. Since President Nixon decoupled the link between gold and the U.S dollar in 1971, it effectively ended any form of gold peg internationally. Without any convertibility to gold by any currency, governments all over ...