75 years on from Bretton Woods - What it means for you.

The Bretton Woods agreement put the world on a quasi-gold standard. The US dollar was backed by one ounce of gold, pegged to US$35 per ounce. And all other currencies were pegged to the US dollar.

The exchange rates of other currencies were set and it became the responsibility of the US government to control the supply of US dollars to support the system as it needed.

Pegging exchange rates was meant to prevent the persistent devaluing of currencies.

In 1973, the United States officially ended its adherence to the gold standard, and most currencies became floating currencies - meaning their value against each other is set by supply and demand.

This also left governments free to create as much local currency as the want.

What this mean for us is that the main measurement we use in our economic lives has no fixed value.

So if the income you receive for selling your time stay the same in terms of currency, but the price you have to pay for what you need increases because the supply of currency increases, you can buy less of what you need.

Most governments have a policy of creating inflation and making wage earners and savers poorer.

One way to counter the effects of inflation is to earn income from being a business owner or investor in a business. Equity crowdfunding makes it easy for entrepreneurs and individual investors to partner and create businesses that reward stakeholders for the value they create, not the hours they sell.

Micro Investor Club helps individuals find, evaluate and invest in private companies through equity crowdfunding offers.

Join Micro Investor Club and invest for your financial future.