Nixon had no choice. He went ballistic when he realized that he could not sustain the existing policy. There was only one thing he could really do, and that was let the dollar float.
The irony is that the economists had been advising him to do that for years anyway.
Probably that there wan't enough gold available in the world to back all the dollars in circulation.
It didn’t create a stable currency. There were often annual swings in purchasing power in excess of 20% when we were on the gold standard.
And every 20 years we had a deflationary depression. Not recession but Depression. Massive bank and business failures. Massive foreclosures. That happens because gold production doesn’t keep up with the economy. Unless you have another California gold rush and then you have inflation.
A gold standard would leave our currency in the hands of China, which is the world’s largest gold producer these days, and in the hands of speculators like Soros.
And if you think a gold standard would stop Congressional borrowing, think again. They borrowed when we were on a gold standard. They will have no problem promising that your children will pay back their debts with gold.
Not only that, every time there was a crisis, Congress voted to devalue the dollar. So a gold standard does nothing helpful.
A gold standard stabilizes the price of gold and not much else. If the price of gold goes down relative to other goods and services then you have inflation. If the price of gold goes up you have deflation.
Currently, China is the largest gold producing country in the world. Russia is No.3. If the U.S. was on a gold standard, then China or Russia could cause U.S. currency to devalue whenever they want by flooding the market with gold.
I'm so sick of having to borrow money at interest from the Fed to pay off previously borrowed money.
It doesn't work with your credit card, why would it work for a nation.
Invest in brass and lead, aka ammo.
A Silver Dollar’s silver content weighs about 3/4ths of an ounce, or 75%.
An ounce of silver today costs $14.80.
The current dollar value of the silver in an old silver dollar is therefore $14.80 * 75% = $11.10.
If one paper dollar used to be worth ONE SILVER DOLLAR but now IT TAKES ELEVEN PAPER DOLLARS to buy the same silver...
Q: WHERE DID THE OTHER TEN DOLLARS GO?
A: The government stole over 90% of your money with planned inflation.
Do you really want to kill the progressive nanny-state and all leftist social-engineers? Return to the gold standard.
America’s left in all forms lives massive debt and printed money, courtesy of our printed, fiat currency and centrally-controlled monetary system. All statists/fascists/socialists must have a monetary system and currency that is absolutely under their control. Remove that from them - and they die immediately.
So YES - I am absolutely in favor of a gold standard.
Unfortunately, America is too far gone down the path of centralized government and its politics. A return to gold will never, ever happen.
Lots of things wrong with the article.
The U.S. did not have “nearly two centuries” of the gold standard.
The U.S. only established a gold currency when the Constitution was ratified, in 1788.
That standard, of $20 per ounce of gold, lasted until 1934, when Franklin Roosevelt outlawed the private ownership of gold, and changed the “standard” from $20 per ounce to $35 per ounce, providing a one time inflation of the currency of 75%!
So the gold standard was only in effect from 1788 to 1934. 156 years.
Gold worked well, but fiat currency has worked better for the United States.
Why? Because the gold standard resulted in the destruction of the British Empire. They could not monetize the costs of empire, and they were forced to give it up.
On the other hand, Pax Americana, (an extension of Pax Britannica), has monetized much of the cost of maintaining a world order (freedom of the seas, international trade, communications, and general lack of boundary erasing conquests).
We would have a hard time with the Chinese owning a significant part of our debt, with the gold standard. As it is, when they ask for payment, we write them an electronic check. The electrons are virtually free. We do not even have to print paper.
Could a gold standard work again? Hard to say. People have grown unaccustomed to dealing in gold.
I’m college educated, but I never understood monetary policy with respect to the gold standard. I seem to have a mental block in understanding it. I didn’t understand how the printing of money (quantitative easing) didn’t cause runaway inflation or at least wreck the value of the dollar. I wonder if that is true for most of the population?
What we need to do is put a stop to fractional banking.
Be it gold, or notched sticks, if you allow fractional banking to continue, nothing will be fixed. It is the root of all the manipulation we see.
Exactly why Stephen Moore and Herman Cain were shot down.
If I’m not mistaken, the beginning of long downward spiral of middle-class wages coincides with going off of the Gold Standard.
Still wonder what the he11 Nixon was thinking.
I think this does a decent job of explaining Nixon’s thinking:
The problems with fiat money become even more dangerous
in the world of International Economics:
The Federal Reserve, Central banks, World Banks, Creating money from thin air.
The Fed needs to be audited, restructured back into
congress' control as per the Constitution.
For those that need a refresher on our money system.
Learn it, because it needs to go ASAP.
Greenbacks and notes, like Lincoln did before the Civil War.
Payed off the debt and the cost of the war.
Told the bankers to pack sand.
(see Money Masters link below)
How long do we work per year just to pay taxes? 4-5 months?
What could you do for your family if you could actually
save/spend this money how you see fit?
Who Controls the Money Controls the WorldHookTube - 13mins
Collapse of the American Dream AnimationHookTube - 30mins
Money Masters 1800 - Bill Still - This starts at a part about Lincoln/Civil War funding, but the entire vid is worth watching.
Can Trump end the FED?HookTube - 10mins
97% Owned ~ Economic TruthHookTube - From a EU prospective, 2hrs
Princes of the Yen Central Bank Truth DocumentaryHookTube Asian prospective, - 90min
Hidden Secrets of MoneyHookTube - episode 4. - 30mins. The rest of the series is good to.
Money as DebtHookTube - Good Series of Vids
You have NO choiceHookTube - George Carlin - 3min
America: Freedom to FascisimHookTube - Aaron Rousso - 2hrs30mins
How Central Bankers reshaped the world economy following the 2008 economic crisisHookTube - 25mins
#Qanon, Dollar Collapse, Trump Ending the Fed - with Wayne Jett, Pt. 1 HookTube - 41mins
#Qanon, Dollar Collapse, Trump Ending the Fed - with Wayne Jett, Pt. 2 HookTube - 40mins
The Value of the Dollar over time.GIF
How much is A Trillion dollars?
The Federal Reserve - History of Lies, Thievery & Deceit
The Creature of Jekyll Island - full PDF
Andrew Jackson shuts down Second Bank of the U.S. 9-10-1833
Neilkeenan.com/history-events-timeline/ - long but worthwhile read.
The Federal Reserve Act of 1913
The Federal Reserve - All the things
BANKS, SHAREHOLDERS, AND OWNERS OF THE FEDERAL RESERVE SYSTEM
Federal Reserve Research Tool - Create graphs comparing many categories. Great visualizations!
The National Economic Security and Recovery Act - NESARA by Harvey Francis Barnard.
The actual bill, not the 'Shaini Candace Goodwin' scam......
This bill was never brought to the floor. Few other than Rand Paul even considered it.
I feel it is something we should look at very hard.
The now defunct NESARA sight on WayBackMachine.
What does NESARA actually do if passed?
CTRL-FED-DELJPG - Meme
And for fun. We MAGA! A Bugs Life HookTube - 1min
Truthfully, specie (gold and silver) were good, but today are too limited. What would be more practical today would be currency backed by a multitude of metals, semi-metals, alloys, gems, difficult to manufacture but stable chemicals.
The value of this would be that all of these things would float relative to the others, they could be used like silver certificates, that is, the paper currency could be redeemed for its value in its basis.
Different purity of things could have different value: such as extremely pure Canadian Maple Leaf gold coins, compared to less pure coins.