ericfj on Nostr: I don’t understand how the second point addresses the gold divergence from other ...

I don’t understand how the second point addresses the gold divergence from other commodities during that time frame. If non-monetary commodities around the world are not rising in proportion to gold, then is the position that fiat was preventing *deflation* from happening? This wasn’t just an American problem.
I don’t think this absolves the US of the issue- it adds another layer: everyone was printing money (yes- especially the US), but everyone was also expecting the US to honor a price of gold that didn’t make sense anymore. Makes the depegging make a lot more sense from the US perspective- you quit the illusion and allow the free market fiat value of gold to float for everyone.
Not saying it’s a good thing, just learned additional context.