Abandoning the gold standard was a fatal error we’re now all paying for

  • Print

    The Alex Jones Channel
    Alex Jones Show podcast
    Prison Planet TV
    Infowars.com Twitter
    Alex Jones' Facebook
    Infowars store

Edmund Conway
London Telegraph
Aug 14, 2011

That’s right: come Monday morning we will have managed to survive four decades of fiat money – though, given the chaos in markets in recent weeks, it is anyone’s guess how much longer it will last.

On 15 August 1971, with the US public finances straitened by the cost of the war in Vietnam, Richard Nixon finally cut the link between the US dollar and gold. Until then, the US Treasury was duty bound to exchange an ounce of gold with central banks willing to pay them $35.

Suddenly, for the first time in history, the level of the world’s currencies depended not on the value of gold or some other tangible commodity but on the amount of trust investors had in that currency. Central banks were allowed to set monetary policy based on their instincts rather than on the need to keep their currency in line with gold.

It was one of those seminal moments whose significance has only gradually become apparent, obscured as it was at the time by Vietnam and then Watergate. But the more one examines economic history, the more obvious it is that this was one of the most important policy decisions in modern history.

Full article here

Abandoning the gold standard was a fatal error were now all paying for  150709banner2


Print
Print this page.

Comment Rules


Leave a Reply

You must be logged in to post a comment.

You can skip to the end and leave a response. Pinging is currently not allowed.

Leave a Reply

Powered by WordPress | Designed by: Premium WordPress Themes | Thanks to Themes Gallery, Bromoney and Wordpress Themes