Surging dollar stirs markets buzz of 1980s-style Plaza Accord
“Through that agreement which France, Japan, the UK, US and West Germany agreed to weaken the dollar — a stance taken out of a belief that the dollar’s huge move higher was damaging the global economy.”
USAGOLD note: In 1985 there was general agreement among industrialized nations that the dollar needed to be throttled. If that were not the case, the Plaza Accord never would have gotten off the launch pad. Which nation-states today would be interested in elevating their currencies, as was the case in 1985? Not many, we will venture. That said, a new accord to weaken the dollar, should it happen, would likely stimulate demand for precious metals.