Posted on 04/14/2006 5:24:17 AM PDT by patriot_wes
Crisis and Repudiation
A dollar crisis erupted in 1970-1971 when foreign central banks, who had been flooded with dollars funding U.S. deficits, began to demand payment for their dollars in gold according to the Bretton Woods agreement. The U.S. had printed so many dollars and borrowed so much money from foreign banks that U.S. gold reserves were rendered insufficient (by a ratio of over five to one!), making full payment in gold impossible. The crisis required an immediate solution to save America from default and bankruptcy.
The U.S. resorted to immediately severing the link between the dollar and gold, making it abundantly clear to all its creditors that America would never repay any of the billions of dollars it had borrowed with physical gold, so the depreciating paper dollars were then backed by nothing but the ''reputation'' of the U.S. Government. The act of severing this link was functionally equivalent to an act of bankruptcy by the U.S. Government.
True, not since Nixon.
Missler is not a member of any cult. He is however formerly with the NSA. And you're right, only bible bashers could have any credible opinions [/sarc]
With the Bretton Woods Conference (July 1944 New Hampshire) the US established a "gold exchange standard" for foreign goods and services.
A dollar crisis erupted in 1970-1971 when foreign central banks, who had been flooded with dollars funding U.S. deficits, began to demand payment for their dollars in gold according to the Bretton Woods agreement. The U.S. had printed so many dollars and borrowed so much money from foreign banks that U.S. gold reserves were rendered insufficient (by a ratio of over five to one!), making full payment in gold impossible. The crisis required an immediate solution to save America from default and bankruptcy. The U.S. resorted to immediately severing the link between the dollar and gold, making it abundantly clear to all its creditors that America would never repay any of the billions of dollars it had borrowed with physical gold, so the depreciating paper dollars were then backed by nothing but the ''reputation'' of the U.S. Government.
You are right about that - the average american doesn't realize that everything he lays his eyes on when he looks around his living room gets here thanks to oil!
So... the final size and shape of the U.S. economy should have been limited all this time to a boundary defined as the amount of a yellow metal we can dig up out of the ground?
hehehehe... sure. Yes... it would have been simple. Third-world simple.
we did it to surround IRAN for the next battle!
Thanks for the link. John Loftus knows his stuff.
Inquiring minds want to know.
The man is truly not the worlds most reliable prophet or interpretor of the Bible me thinks.
Bible prophecy has nothing to do with the facts surrounding the Bretton Woods agreement.
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