Gold tells the truth about the insane sending and borrowing schemes of politicians (both parties) and entire societies. It may be hard for freepers to believe but prior to 1971 we settled our trade deficits in gold bullion. That is why we ran no trade deficits
Due to having to inflate due to the Vietnam war too many foreigners were cashing in their US dollars for gold. So Nixon closed the gold window in 1971. So they were stuck with US Dollars. We kept the USD strong so foreigners didn’t mind so much. You can see the evidence by all the $100 bills and other US currency that circulate world wide
USD strength depends on a strong America with a strong military and strong economy. An idiot president like Oboma hurts all this
The inflation began earlier as a consequence of the Marshall Plan and the dollar’s role as the postwar reserve currency. Huge dollar balances accumulated in Europe, more than the gold standard could support by 1959.
When a national currency serves as the world’s reserve currency a conflict occurs between that nation’s domestic policy and its foreign policy designs. A Belgian named Triffin identified the resulting monetary problem and the Triffin Dilemma is named for him.
When Kennedy took office in 1960 he was confronted with the Triffin Dilemma. To defend the dollar he needed to cut budget deficits and raise interest rates. But that would have put the economy into recession and he wasn’t willing to do it. So instead he opted for inflation, the first hard sign of which was removal of silver from American coinage in 1964. Johnson continued JFK’s policies, adding the Vietnam War and Great Society to all of the spending. Nixon inherited Johnson’s mess, and rather than accept the necessity of recession to defend the dollar he broke its last link to gold.