Watch Tricky Dick End The U.S. Gold Standard (1971)

Aug. 15, 1971...  Tricky Dick abandons the gold standard.

Nixon announces the end of the Bretton Woods International Monetary System 41 years ago today.  This was one of the most important decisions in modern financial, economic and monetary history and is a seminal moment in the creation of the global sovereign debt crisis confronting the U.S., Europe and the world in 2012.

The dollar has since fallen from 1/35th of an ounce of gold to 1/1750th of an ounce of gold.

Read more HERE

---

Video text from Youtube page:

On August 15, 1971, President Nixon announced on TV 3 dramatic changes in economic policy. He imposed a wage-price freeze. He ended the Bretton Woods international monetary system.  And he imposed a temporary surcharge (tariff) on all imports. The Bretton Woods system was created towards the end of World War II and involved fixed exchange rates with the U.S. dollar as the key currency - but also a role for gold linked to the dollar at $35/ounce. The system began to falter in the 1960s because of an excess of dollars flowing out of the U.S. which foreign central banks had to absorb. A run on gold in 1968 was stemmed by a patch on Bretton Woods known as the two-tier gold system. All of this was ended unilaterally by the Nixon decision.

Profanity Warning:

But highly entertaining.

Related links:

• The Gold Confiscation Act Of 1933
• The Day Richard Nixon Killed the Gold Standard
• CHART - Inflation Adjusted Gold Price (1970-2012)
• We Need A New Gold Standard - Economist James Grant

Comments

[DailyBail]

CNBC Poll: Do You Support A Return To The Gold Standard

http://www.cnbc.com/id/43898638

[DailyBail]

CHART: China Passes India As World's Biggest Gold Buyer

http://dailybail.com/home/chart-china-passes-india-as-worlds-biggest-gold-buyer.html

[DailyBail]

FDR Issues Executive Order 6102 Banning Gold Ownership

http://dailybail.com/home/fdr-issues-executive-order-6102-banning-gold-ownership.html

[DailyBail]

CHART - Gold Bubble Tame Compared To Nasdaq & Oil

http://dailybail.com/home/chart-gold-bubble-tame-compared-to-nasdaq-oil.html

[DailyBail]

CHART - Inflation Adjusted Gold Price (1970-2011)

http://dailybail.com/home/chart-inflation-adjusted-gold-price-1970-2011.html

[DailyBail]

Max Keiser On California's Planned Marijuana Bonds: "Gold And Ganja Make A Really Well-Balanced Portfolio"

http://dailybail.com/home/max-keiser-on-californias-planned-marijuana-bonds-gold-and-g.html

[DailyBail]

World Bank Chief Calls For Return To Gold Standard

http://dailybail.com/home/world-bank-chief-calls-for-return-to-gold-standard.html

[DailyBail]

Video: Counterfeit Engelhard 100 Ounce Silver Bars

http://dailybail.com/home/video-counterfeit-engelhard-100-ounce-silver-bars.html

[DailyBail]

Tungsten Plated Gold Bars - Bob Chapman Implicates Robert Rubin & Larry Summers

http://dailybail.com/home/tungsten-plated-gold-bars-bob-chapman-implicates-robert-rubi.html

[DailyBail]

Gold Bar Testing With Ultrasound

http://dailybail.com/home/gold-bar-testing-with-ultrasound-video.html

[DailyBail]

Foundation X, The OITC, And Lord James Of Blackheath: Shadowy International Gold Conspiracy Or Hoax?

http://dailybail.com/home/foundation-x-the-oitc-and-lord-james-of-blackheath-shadowy-i.html

[DailyBail]

Ron Paul: Audit The Gold At Fort Knox!

http://dailybail.com/home/ron-paul-audit-the-gold-at-fort-knox-monetary-policy-subcomm.html

[DailyBail]

Is Gold In Fort Knox Real? Ron Paul Demands Official Audit

http://dailybail.com/home/is-gold-in-fort-knox-real-ron-paul-demands-official-audit.html

[Cheyenne]

The topic of gold is interesting when comparing the crash in 2008 with the one in 1929. For reference, look at the folowing chart:

http://stockcharts.com/freecharts/historical/djia1900.html

In 1929, the stock market plunged from a high of 381 to a low of 41 three years later--a drop of 89%. As George Washington's blog has repeatedly demonstrated (based on an extensive collection of research), the '29 crash was driven in large part by fraud, on top of that other bugaboo, leverage. In other words, it was very much like the crash in '08.

If you look at the chart, you'll see that it took 25 years after the crash to reach the previous nominal high of 381, which didn't happen until 1954. The word nominal is key, because in 1934, FDR--in addition to outlawing private gold ownership--also devalued the dollar by re-setting the gold price from $20 to $35. Thus, the stock market didn't recover in real terms until it reached 667, which is the gold-reset-adjusted 1929 high, and that didn't happen until 1960 or so.

The 2008 stock market crash seemed well on its way to challenging the 90% drop mark until March 2009, when the plunge halted at roughly 50%. Then a couple of things happened. First, the President comes out and tells people that "profits and earnings ratios" are so low that they shoud reconsider their view of the market. Second, mark-to-market accounting rules were abandoned. Also, HFT continued its march to stock market dominance.

That began a rally that's continued essentially to this day. This entire "rally," however, appears to be built not only on fraud, but on fraud that is on a grander scale than was in place in 1929. Back then, after all, the government didn't step in with fake accounting standards, a dubious presidential stock market bottom call, and a shitload of computer trading, on light volume, being conducted by a bunch of bankrupt TBTF primary dealers. This entire rally is complete bullshit.

When curtain goes up on this absurd levitation act, the result will be every bit as severe as it was in 1929, if not more so, and we'll be staring at the same THIRTY-YEAR recovery period that it took back in the day. And that was when the government prosecuted people, passed sane laws that a single person could read and actually undersand, and when courts and regulatory bodies didn't engage in games of Twister to hide the rotting corpses that are piling up faster than a Rob Zombie horror film.

Just sayin.

[DailyBail]

I liked that chart.

[Paris]

Whare did tricky Dick wad get the authority to end the gold standard?
The Constitution makes only gold and silver real money.
Wouldn't he need a Constitutional Amendment to change that?

[S. Gompers]

Very good Cheyenne, I used to always say how the Depression was orchestrated, nobody wanted to believe it.

[WE THE PEOPLE]

TRICKY DICKY LIED TO WE THE PEOPLE AS ALMOST ALL POLITICIANS HAVE DONE ESPECIALLY SINCE LINCOLN. UNFORTUNATELY, THE SOVEREIGNTY OF THE STATE WAS ABOLISHED ALONG WITH SLAVERY. SUBSEQUENTLY THIS LED TO

THE ACT OF 1871 WHICH INCORPORATED THE UNITED STATES OF AMERICA & CREATED THE STRAW MAN FOR WE THE PEOPLE!!!

TIME TO BANKRUPT THIS FRAUDULENTLY ESTABLISHED CORPORATION & RESTORE THE REPUBLIC OF THE UNITED STATES TO ITS ORIGINAL DESIGN THAT OUR FORE FATHERS ESTABLISHED FOR WE THE PEOPLE!!!

RON PAUL IS THE REAL CHOICE FOR WE THE PEOPLE!!! NOT WHAT THE MEDIA PUPPETS ARE PAID TO BRAINWASH US TO BELIEVE FROM THE OLIGARCHS & TREASONOUS GOVERNMENT OFFICIALS.

WAKE UP AMERICA!!!

[SKINFLINT]

So where do you go. With all the fraud that abounds in just about every aspect of our economy it just seems that you should have phycical hold of cash and not much else. Recently the wife and I refied the home to a lower interest rate with a local bank. I wanted to cash in all retirement accounts, pay off the house and take the ass beating in fines and penalties. My father in law who used to work in NYC at one of the big three accounting firms explained that it would not be prudent to do as it would reduce the amount of debt we carried and would therefore not allow us to help out children when it comes time for college in the form of scholarships and loans etc. I can't stand being in debt. Once the shit hits the fan and we can't access any money whatsoever then we are totally screwed . My Grandmother remembered it all too well. When she passed, the Aunt's found all kinds of stashed around her home that seemed to suggest that she was waiting for next one around the corner.

[Tristan]

Here is a funny joke I saw that shows why everybody trusts gold, http://ponderingstuff.com/2012/09/08/fiatcurrency/

[Big M]

Amazing that in all of this written flailing around like a quadriplegic in a swimming pool, nobody could be bothered to ask where in Hell Nixon got CONstitutional authority to do any of this. Am I to believe that he did all of this by himself? Without anybody in CONgress bitching that he didn't have any such authority? Jesus, if CONgress is this emasculated, why not just throw it down a well?

On a side note, I have to add one of my favorite Apollo stories. Early in 1973, the Soviets announced that they had perfected technology allowing them to track objects in space, which was a polite way of saying that they could tell if DC and NASA had actually landed on the Moon, or if they were pulling off the hoax of the century, while making themselves and their cronies rich by ripping off the taxpayers for billions. Shortly afterwards, Big Dick said they were scrubbing the rest of the scheduled missions, and we wouldn't be going back to the Moon anytime in the "near future." Nixon never offered any explanation for this, and nobody in CONgress, the media, or most suspiciously, NASA (including the astro-NOTS), ever asked for or demanded any explanation, or bitched and moaned publicly about the entire program being so quickly shit-canned, or demanded to know where Nixon got unilateral authority to cancel the program. And the Apollo program just went “poof,” and has never been heard from again. Gee, I wonder why?

I'll give you three guesses, and the first two don't count.

[pashik]

What is never addressed is that gold price is set & rigged by the same crooks that have rigged the mortgage, derivatives, stox etc markets and gold is likewise being rigged by the bankers. The issue here is the ARBITERS, as they have voided the inherent value of gold and imposed their price controls over PMs like all else. How then is gold superior to anything else?

[Paris]

What part of the Constitution gives the President the authority to eliminate gold backing of our currency?