The U.S. Dollar has a unique role as the primary reserve currency for the global economy. This has been the case since the end of World War II, with the Bretton Woods Conference in 1944. At that conference the world saw the creation of the IMF and the World Bank and an exchange rate system was developed in which each country pegged the value of their currency to the U.S. Dollar, which was itself convertible to gold at $35/oz. So, in essence, this created a global currency peg to the price of gold using the U.S. Dollar as a conduit. The design was well-intended, to provide some element of stability and prevent ... (full story)