SUMMARY
This is AI generated summarization, which may have errors. For context, always refer to the full article.
The claim: President Ferdinand Marcos Jr. ringing the New York Stock Exchange (NYSE) bell signals the world’s return to the gold standard monetary system as the US dollar will soon be gone from the international financial system.
Rating: FALSE
Why we fact-checked this: As of writing, the 14-minute video with the claim has garnered 870,764 views, 28,000 likes, and 3,205 comments on YouTube and 1.8 million views, 105,500 likes, and 2,495 comments on TikTok.
The bottom line: The NYSE closing bell ceremony is held every 4 pm EST on trading days to mark the end of trading. Many personalities and companies have led this in the past.
US dollar downfall: The World Bank has indeed noted a possible global recession in 2023 as nations hike interest rates to curb inflation. However, the US dollar remains stable and is now at its strongest in two decades despite America’s slow growth since the pandemic.
The New York Times reported that the increase in the US currency’s value is made to attract investors due to better returns and control the country’s inflation. In turn, investors are less inclined to put money on emerging markets, putting further economic strain on developing nations and countries dependent on the dollar for transactions.
Return of gold standard: While there have been calls to replace the current fiat monetary system, the World Bank has not made any announcement about transitioning the financial structure back to gold standard.
Gold standard refers to the use of the precious metal as “fixed asset” for the country’s currency value. Politicians and business leaders, including Steve Forbes, are pushing for the return of the old monetary system to limit the debt increase of countries. The gold-based system, however, does not completely abolish outstanding debts.
The financial system started to shift to the fiat monetary system in the 1930s as a way to curb inflation as gold reserves could not keep up with the demands. In 1971, US disallowed foreign exchange of gold to dollars, ending the age of gold standard from the financial world.
No country currently practices monetary structure based on gold or any precious metal. – Kyle Nicole Marcelino/Rappler.com
Kyle Nicole Marcelino is a Rappler intern. This fact check was reviewed by a member of Rappler’s research team and a senior editor. Learn more about Rappler’s internship program here.
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