According to the Conference Board, productivity in the U.S. is now MINUS 0.2 percent. For the first time in more than three decades, we produced less GDP per hour worked. We got poorer.
Abolishing the last link of the dollar to gold led to the collapse in 1973 of the system of fixed exchange rates, but the dollar was still considered the reserve currency although it had lost the basis for its becoming so in the first place. This meant not only that this restraint on inflating the U.S. money supply was eliminated but that the U.S. could export inflation to other countries, which would convert increasing dollar reserves into their own currencies. The entire world's monetary system no longer had any anchor. The world's currencies all became fiat paper.
From 1976 to 1980 the International Monetary fund eliminated the use of gold as a common denominator, abolished the official price of gold, and ended the obligatory use of gold between the IMF and its member countries. Also, it sold approximately one-third (50 million ounces) of its gold holdings “following an agreement by its member countries to reduce the role of gold in the international monetary system,” says an IMF fact sheet.