Dont you dare zone out! This is really important to know. We need to fix this. .... Finally, the dollar has done anything but keep its value. Today, the dollar is worth less than two dimes in buying power compared to the pre-Nixon dollar. And, with little reason to believe that the dollar will maintain even this paltry value, the average American family is left with no meaningful way to save for their children’s education or their own retirement. We experience all of this in the form of financial insecurity and well-grounded anxiety about the future. By contrast, a gold standard is extraordinarily good at maintaining the buying power of the dollar. From 1948 to 1967, inflation averaged less than 2% per year. Interest rates were low and stable, with the yield on AAA corporate bonds averaging less than 4%, providing a reasonable cost of funds to borrowers, and a fair return to savers. Moreover, if Nixon and his successors had maintained the promise that a dollar was worth 1/35th of an ounce of gold, a barrel of oil today would sell for less than $2.50. That’s right, the whole notion of an energy crisis and the ever more intrusive government regulations dictating energy usage are based on the grand illusion that the price of oil has gone up more than 30 fold, when in fact, it is the dollar whose value has fallen relative to gold, oil, and all other goods and services over the past 40 years. And finally, since Nixon killed the gold standard, the world has suffered from 12 financial crises, beginning with the oil shock of 1973 and culminating in the financial crisis of 2008-09 and now the debt crisis in Europe, and the growing deficit crisis in the U.S. Conversely, between 1947 and 1967, there was only one currency crisis, involving the British pound, and no major bank failures or Wall Street and corporate bailouts in the U.S. https://youtube/watch?v=iRzr1QU6K1o forbes/sites/charleskadlec/2011/08/15/nixons-colossal-monetary-error-the-verdict-40-years-later/
Posted on: Mon, 16 Jun 2014 06:12:08 +0000
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