Currency Trading and Intermarket Analysis

On the day of my birth, “Good Friday” March 31st, 1961, the Dow
Jones Industrial Average was sitting at 678.5. The dollar was still
anchored to gold, exchangeable at $35 an ounce. Interest rates were
regulated and low, the economy was strong and steady in the fifteen years
after the end of World War II.
The “Bretton Woods” global currency system of fixed exchange rates
was in place and there was relative stability in the pre-Vietnam, pre-hippie
years.
Ten years later, the next, and only, time my birthday would fall on
“Good Friday,” such stability was no longer assured. A few short months
later, the stability fostered by the 1944 “Bretton Woods Accord” would be
shattered when President Richard Nixon abandoned the gold standard on
August 15, 1971.
I was ten years old and don’t remember the event. I only remember the
ramifications.
Within a matter of months, I recall that inflation became a national
issue. As a young boy growing up in blue collar Buffalo, New York, I was
perplexed as to why, so suddenly, food and energy costs were rising in a
way that hurt my family’s finances.
My father never made that much money to begin with, so the incipient
inflation that would rage another 10 years, hurt us in ways I never understood.
We began crossing the “PeaceBridge,” a span that connected Buffalo
to the edge of Canada and bought groceries in another country where they
were cheaper…. …

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