Flashback: De Gaulle and the Gold Standard

Kurt Nimmo
August 26, 2011

In 1965, former French president Charles De Gaulle called for an international return to the gold standard. De Gaulle said a monetary standard based on gold would keep government spending in check and prevent the sort of economic crisis we are now enduring at the hands of the money masters.

“The fact that many countries, accept as a principle, dollars being as good as gold, for the payment of the differences existing to their advantage in the American balance of trade,” said De Gaulle, “this fact, leads Americans, to get into debt and to get into debt for free at the expense of other countries. Because what the US owes them it is paid, at least in part, with dollars the are the only one allowed to emit. Considering the serious consequences a crisis would have in such a domain, we think that measures must be taken on time to avoid it. We consider necessary that international trade be established as it was the case before the great misfortunes of the world, on a indisputable monetary base, and one that does not bear the mark of any particular country. Which base ? In truth no one see how one could really have any standard criterion other than GOLD !”

De Gaulle later said that the United States “exports inflation” and should agree to major reforms of the world monetary system and help to establish a pure gold standard in international finance.

  • A d v e r t i s e m e n t

Richard E. Caves, at that time the chairman of the Economics Department at Harvard, said “De Gaulle doesn’t know what he’s talking about” and lauded “reforms” instituted by the IMF and praised the idea of special drawing rights for countries that faced serious deficits in their balance of payments.

De Gaulle’s gold standard “scheme” was “wildly irrational,” Caves said. Paul A. Samuelson, professor of Economics at M.I.T., added that De Gaulle’s chief advisor was “an idiot” for suggesting such a proposal.

Fast-forward more than forty years. Gold is climbing toward $1,800 and ounce. Central banks are now abandoning the dollar as the world’s reserve currency. The United States has lost its top-tier AAA credit rating from Standard Poor’s on concerns over budget deficits and a no-end-in-sight debt burden. Economic growth is anemic at best. Unemployment keeps climbing.

Meanwhile, the boss of the privately owned Federal Reserve, Ben Bernanke, has warned government not to cut spending “in the near term,” thus guaranteeing a continuation of unsustainable deficit spending and debt.

It makes you wonder – who was the idiot? De Gaulle or the academics at Harvard and M.I.T.?

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48 Responses to “Flashback: De Gaulle and the Gold Standard”

  1. So, whats the book value of gold? As of July 31, 2011 it’s $42.222 per Troy Ounce.

    fm s.treas.gov/gold/index.html

    Status Report of U.S. Treasury-Owned Gold
    The Status Report of U.S. Treasury-Owned Gold (Gold Report):

    Reflects gold bullion and gold coins owned by the federal government
    Summarizes the fine troy ounces and the book value of gold held by various facilities
    Identifies the value of gold coins and bullion on display at Federal Reserve banks; coins and bullion in reserve at the Federal Reserve Bank of New York; and gold held by U.S. Mint facilities
    The book value of gold is currently $42.2222 per troy ounce. The information used to compile this reporting is received from the U.S. Mint, Federal Reserve banks, and FMS.”.

  2. Charles is right, in a way. But so also are those who say “To beat them, you must join them” somewhat right on the same principle, that being you must become a bankster to beat other banksters. It doesn’t matter if you print your OWN currency, based on your OWN reserves; if you can supply a current of capital, you control a currency, and that can then be doled out in equity. WE can set a currency generated from the supply of Gold because it has been noted as an asset of worth (1827.36 per ounce in the USD currency).

    Technically, a “note” is a unit of trade, the physical side of the device in which the reserve is the other component. That’s not regulated, we can print paper obviously, so what’s the real difference?

    • Wait, if you put securities into Gold you risk losing control of the value of your currency if the value of Gold diminishes. The only way to do that safely would be to either control the price of Gold or to choose another reserve mechanism completely, but going on the premise of using Gold you have to become the biggest supplier in manufacturing, distribution and retail, OR you have to hold the assets of the existing manufacturers, distributors and retailers.

      The former route is rather tricky, being that you now have to have existing reserves to generate enough of a current of capital to buy them out completely, but the latter is not so risky for them because if you hold their Gold in your vault, you provide them with capital in your own currency as the reserves now exist, free to spend wherever the currency can be spent. They can take it all out in tender if they wish, but even at a low rate of interest (If any, given that they might not want to put it in as a security) it’s more worth it to just take SOME of it out in tender.

      But the issue now remains: Who accepts my tender? You gotta set up a family of businesses. If you can get that established, you can further persuade those manufacturers, distributors and retailers to use YOUR bank because it doesn’t limit them from going to the OTHER bank at the same time, it just helps the family get stronger. But if it just becomes commonplace to use your currency parallel to the existing currency, then it’s not exactly an exclusive club, it’s a matter of choice to not “swim” in the capital of current you can generate.

      On choosing an alternative reserve mechanism, if you can provide production to a company, that production can be calculated to be worth dollars. By providing work, you provide capital, and the production will be paid for as an expense (Wages, materials, energy, etc.). That in itself can be considered an asset if the contract can be verified, and the bonus is that it’s up to the discretion of the lender to tabulate it as anything of value

  3. Notre dernier vrai président.
    Our last real president to us french. He was followed by betrayers who sold our country to bankers. It’s intersting to notice the president who followed De Gaulle after he stepped down by referendum (yeah, referendum that are actually listen to in France, can you believe it ?). Georges Pompidou, former CEO of Rothschild Bank. And thus began the fall of France.

    • excellent comment! mercis!

  4. The very people getting screwed are the most trusting who actually belied their professors veracity.

    • c’mon man. don’t be knockin it. i’ll give you a jewel..it’s the fox effect, and i think its even greater than milgrams marvel.

      “The experimenters created a meaningless lecture on ‘Mathematical Game Theory as Applied to Physician Education,’ and coached the actor to deliver it ‘with an excessive use of double talk, neologisms, non sequiturs, and contradictory statements.’ At the same time, the researchers encouraged the actor to adopt a lively demeanor, convey warmth toward his audience, and intersperse his nonsensical comments with humor…

      The actor fooled not just one, but three separate audiences of professional and graduate students. Despite the emptiness of his lecture, fifty-five psychiatrists, psychologists, educators, graduate students, and other professionals produced evaluations of Dr. Fox that were overwhelmingly positive…

      The disturbing feature of the Dr. Fox study, as the experimenters noted, is that Fox’s nonverbal behaviors so completely masked a meaningless, jargon-filled, and confused presentation.”

      what’s that remind you of? hmm…politicians…maybe some dabbling in the courts…maybe some health care practitioners…maybe some “scientists.”

      maybe some thieving ENEMIES who will NEVER GET AWAY WITH THEIR LIES!

      • oh i forgot to add, even after they were told the true nature of the experiment, they were still interested in game theory, and insisted on the accuracy of the presentation, all because of the delivery. get ready for the antichrist. im sure he’ll be very charming.

  5. “You are a den of vipers and thieves. I intend to rout you out, and by the grace of the Eternal God, will rout you out.”
    -Andrew Jackson

    “The people have always some champion whom they set over them and nurse into greatness…This and no other is the root from which a tyrant springs; when he first appears he is a protector.”

    “Of all tyrannies, a tyranny exercised for the good of its victims may be the most oppressive. It may be better to live under robber barons than under omnipotent moral busybodies. The robber baron’s cruelty may sometimes sleep, his cupidity may at some point be satiated; but those who torment us for our own good will torment us without end, for they do so with the approval of their own conscience.”
    –C.S. Lewis

    “The tyranny of a prince in an oligarchy is not so dangerous to the public welfare as the apathy of a citizen in a democracy.”

    “The bold effort the present central bank had made to control the government are but premonitions of the fate that await the American people should they be deluded into a perpetuation of this institution or the establishment of another like it.”
    -Andrew Jackson

    “The price good men pay for indifference to public affairs is to be ruled by evil men.”

    Who will rise up for me against the evildoers? or who will stand up for me against the workers of iniquity? ―Psalm 94:16

    A great revolution in just one single individual will help achieve a change in the destiny of a society and, further, will enable a change in the destiny of humankind.

    “I swore never to be silent whenever and wherever human beings endure suffering and humiliation. We must always take sides. Neutrality never helps victims, only the oppressor. Silence encourages the tormentor, never the tormented.”
    -Elie Wiesel

    “Whenever you decide that you are on the side of the majority, it is time to pause and reflect.”
    -Mark Twain

    “Apathy is the glove in which evil slips it’s hand.”

    “Our lives begin to end the day we become silent about things that matter.”

    “All that is required for evil to flourish in the world is for good men to do nothing.”

    “Is life so dear, or peace so sweet, as to be purchased at the price of chains and slavery? Forbid it, Almighty God! I know not what course others may take; but as for me, give me liberty, or give me death!”
    -Patrick Henry

    “Forewarned is forearmed.”

    “It is the mark of an educated mind to be able to entertain a thought without accepting it.”

    “The Bible is the rock on which this Republic rests.”
    -Andrew Jackson

    “Government “help” to business is just as disastrous as government persecution… the only way a government can be of service to national prosperity is by keeping its hands off.”
    -Ayn Rand

    “If there is no absolute by which to judge society then society becomes absolute”
    -Dr. Francis Schaeffer

    “The hottest place in hell is reserved for those who never spoke up in times of moral injustice.”

    “It is the first responsibility of every citizen to question authority.”
    -Benjamin Franklin

    “Liberty vs. tyranny, not left vs. right.”

    “Beneath this mask there is more than flesh. Beneath this mask there is an idea, Mr. Creedy, and ideas are bulletproof.”

    “Cowardice asks the question, is it safe? Expedience asks the question is it politic? Vanity asks the question, is it popular? But conscience asks the question, is it right? And there comes a time when one must take a position that is neither safe, nor politic, nor popular, but he must do it because conscience tells him it is right.”

    “How fortunate for governments that the people they administer don’t think.”
    -Adolf Hitler

    “Forewarned is forearmed.”

  6. Dollars for Gold? Don’t be a chump. Hang onto that gold chain.So what if it’s out of stile.
    Melt it all down. Make a golden calf out of it. Then God will kill you.

  7. What’s missed in the article is that when De Gaulle demanded payments in gold from Fort Knox for the dollars sent back to the US in the course of the commerce, the puppet masters, who’ve kept the leftists on the payroll and standby ( where do you think the minimum wage proletarians get the finances for political activities? Remember who financed the Bolshjewiks and all the other revolutions?) have sicked the students upon his cabinet , said riots resulting in De Gaulles removal . Should have toed the the line.Lucky for De Gaulle he was not removed in a more radical manner like his counterpart JFK who’ve also threatened the bankster counterfeiters .

  8. It also doesn’t take a genius or an economist to figure that out that the world
    should be on a gold standard. It worked for thousands of years quite well.
    Fiat currency and national debt were created for the very purpose of world
    domination. It’s not psychotic or a mistake – it’s the genius creation of evil people.

    • National debt is caused by the PRIVATIZATION of currency. This is a separate issue from “fiat” currency. The ideal currency system is based on soveriegn, debt-free fiat money.

      Dennis Kucinich has a proposal to un-privatize the dollar, abolishing the Fed and returning to the debt-free Lincoln greenback. This would take care of the whole national debt issue without enslaving the people to gold barons.

      • *sovereign*

      • A Lincoln greenback might take care of the debt issue, but it will not take care of the inflation issue; and as we know, the difference is only technical. Without something substantial backing it up, the paper currency is only paper and it will be inflated into worthlessness. Governments with the power to print money at-will inevitably print a currency into insolvency. How many times must history prove this simple idea?

        Privatization did not cause the national debt; monopolization of currency is what caused it, as well as a fascist relationship between private and public activity. The Fed prints the money, and the government maintains a monopoly through force; it’s a combination that has worked perfectly for the globalists and their empire.

        Any individual or entity should be able to issue a currency. That is a free market, buying and selling everything freely – money or whatever else. If a currency gains a reputation as being sound – in most cases that means it’s backed by something substantial, like gold – then people will flock to it. They will buy and sell that currency like any product.

        We can’t even get this government to do something as simple as stay out of new wars or keep their hands off raw milk, and you want to give them the exclusive power to print money to pay for their bullsh*t global empire?

        Back to high school economics and civics class with you!

    • I believe shadow is correct. I’m not sure. But the argument by I think his name is Bill Still in the documentary ‘Secret of Oz’ it is reasoned that a fiat currency could work very well if it’s worth is based upon the production of the nation. The amount of currency in circulation would be confined to these levels. i’d like to know what G.Edward Griffin thinks about it.

      • based on production? thats an interesting concept, a lot of the local currencies are called “hours” which conveys the same idea of labor etc. i still think it would be too variable. metals are more finite, and you could diversify the backing to hedge any kind of volatility or disruption with one in particular. a metal standard would be fine under normal circumstances. it’s only a problem when they want to have a bunch of credit like what happened with WWI, and then they all had a bunch of inflation to deal with. so don’t have a war. hows that? if theres some kind of disaster and there are deficits im sure something else can be arranged. clearly the inflation model DOESN’T WORK. even keynes admits:

        “By a continuous process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method, they not only confiscate, but they confiscate arbitrarily; and while the process impoverishes many, it actually enriches some.”

        that is what the system is designed to do. now they basically own everything through their scheme. END THE FED. GO RON PAUL.

  9. Yeah keep calling them idiots and keep missing the core point:

    Their aim is to kill us.


    • You can say that again!!

  10. I’m no expert on this issue, but it seems to me that gold wasnt a cure all, the late 19th century is proof enough of this. Also, is the world really dumping the dollar as Nimmo says? I always hear that T bills are still lowering their yields.

    • You’re absolutely right. Gold is a terrible currency except for banksters, monopolists and gold hoarders like Ron Paul.

      Don’t forget that Alex Jones’ boss is a gold dealer. These are the people who would benefit from gold currency at the expense of everyone else. In my opinion anyone advocating the gold standard is a scum bag traitor.

      • Shadow Elite is quite intriguing name. You wouldn’t deny, for risk of appearing supporting the private counterfeiting monopoly of Federal Reserve ,that currency must be tied to something of real material value , if gold is as bad as you claim, then lets say to a kilowatt-hour, would you?

      • Not if you distribute the Gold evenly amongst the people. Make a lot of small coins so that everyone can have some and share it evenly with everybody in the world.
        What’s wrong with that?

        • and do the same with silver…..there is enough to go around!

      • You are talking about monopoly with your Lincoln greenback, which would require a monopoly to be able to survive for very long.

        In a truly free market where multiple currencies compete and are traded, a Lincoln greenback would fail miserably. No one would want it. People would only want currencies backed by something more substantial than the empty promises of crooked politicians

  11. hmm…now lets see…are there any presidential candidates perhaps, who would abolish the federal reserve, and institute sound money? maybe we could come up with two?…but now in fact and principle, based not upon rhetoric, but upon their consistent record and performance? oh yeah. ron paul. we need silver, gold, platinum, palladium certificates. change it up with the denominations etc. it would be similar to JFKs executive order 11110. smaller denominations could be minted in actual copper, make it a .5 as the base value or something. you could have sterling or some other grade and introduce titanium etc.

  12. There were a number of assassination attempts on DeGaulle. Wonder whether this gold standard advocacy the motivation behind some of them

    • That is an interesting question …

    • absolutely!

  13. Money is the root of all evil… would it surprise anyone that the people who create the money are the most evil people on the planet. The wolves in sheep’s clothing.

    • The LOVE of money is the root of all evil.

      • +1. there is a HUGE difference in those two statements.

        We must have a basis of exchange. There is no free ride, there is no utopia, until Christ returns.

  14. I do not live in US, but I can see many real bad things your government is doing to the public of the globe – as I call it. It’s nothing more than an imperialistic grabing of the rest of the (free or not) world. Your GREAT Country acts as a some kind of peacemaker, while it destroys the real peace. It’s not about Libyans, but all the rest! What the hell! Who gave your country the right to take control over the others?! You PEOPLE OF THE AMERICA SHOULD TAKE CONTROL OVER YOUR CONTRY AND TAKE YOUR NATIONAL DEBT IN YOUR HANDS! It is sick letting your government to do such a stupid actions like killing people of for example IRAQ. You should focus in yourself for a while to be a better nation than a killing machine. I hope Ron Paul will clean your mess.

    • Most Americans are asleep at the wheel… The domestic propaganda is so thick… even the brightest in the bunch often cannot comprehend what is really happening here. Having access to alternative ideas on the internet is helping… but there is an entire generation (baby boomers) of Americans who are terminally skeptical of the truth… mainly because it points out that their vision of America, is nothing but an illusion… and that their lives and motivations are selfish and shallow.

      • Very well put.

      • The main problem is that the people have turned their backs on God.
        Americans used to be the envy of the world. The people have become
        systematically more evil as a result. They lie constantly – especially
        in Gov and business. It’s no wonder that their spiritual as well as Gov
        leaders have become evil also.

    • You are right of course! That huge parasitical beast must perish and a new America once again based on the principles of the bible and the constitution must emerge!

    • because were the only country in the world that puts sodium flouride in the water.

    • Keep in mind that Washington DC has become as a separate entity from the rest of America. It’s financial and military might subjects the states to the same tyranny as it inflicts on the rest of the world. Washington DC is NOT our country. It has been used as the tool of the international bankers to build their global empire, and the American people have about as much influence over DC as your countrymen do

  15. Ben Bernanke is one of those idiots from MIT.

    • Bernanke is ultra-wealthy and now controls the United State’s entire money supply. How exactly is he an idiot??

      • I went to high school with someone who went to MIT. He was good at getting good grades, but he had the common sense of a flea. Psychiatrists call them “academic idiots”. They can take standardized tests and get good grades, but that’s it. They all do homework all the time because their control freak parents want to look good to their peers.

      • He’s an idiot because he’s a disgrace.

        • i am pretty sure he is not an idiot he knows exactly what he is doing he just acts like an idiot in front of the cameras thats how you conduct a war deception and lies

      • i hate bernanke with the smary grin. is there no justice in this world?

        • smarmy

      • Perhaps we should call him a moral idiot, for his time on earth will have been spent playing games with green paper and doing the bidding of demons in human form

  16. The financial calamity our nation is seeing since Bush sr took power is all for one purpose, control.

    The elite knew years ago that our system was unsustainable and went into HUGE debt to create a police state to maintain control of the power, infrastructure and to keep their quality of life very high

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