About 50 years ago today, Americans became acquainted with “Nixon Shock” when the 37th president of the United States suspended the convertibility of the U.S. dollar into gold. Since this time, the U.S. economy has never been the same, as many believe Richard Nixon ushered in a new era of uncontrollable creative currency.
50 Years Ago Today, Nixon rocked The World
Today is the anniversary of U.S. President Richard Milhous Nixon telling the U.S. public on August 15, 1971 that the administration along with the Treasury would immediately stop the convertibility of the U.S. dollar into gold. Nixon has basically revealed the removal of the gold standard from the dollar and will never return. Moreover, what the American public is not fully aware of is why Nixon and his colleagues decided to remove the gold standard.
The reason why Nixon removed the gold standard is because the United States could not hide the massive military spending that prompted the Vietnam War. Part of the Bretton Woods deal was created so the United States owned three-quarters of the world’s gold. Military spending under Nixon was so massive that other countries like France began to notice that the United States was printing massive amounts of USD. On the afternoon of Friday, August 13, 1971, Nixon and members of the Treasury secretly met at Camp David.
According to testimony and reports, the secret meeting of Camp David was very contentious and led to a huge debate. At the end of the meeting, the Nixon government finally decided to break the Bretton Woods deal. Speaking on television on Sunday, August 15, 1971, Nixon said he had instructed the 61st U.S. Secretary of the Treasury, John B. Connally, to stop gold convertibility by U.S. dollars.
“In recent weeks, speculators have waged a full-scale war against the US dollar,” Nixon said on television. “The strength of a national currency is based on the strength of that national economy – and the US economy is by far the strongest in the world. Therefore, I have ordered the Secretary of the Treasury to take the necessary action to defend the dollar against the speculators, “the 37th U.S. president said. Nixon added:
I have ordered Secretary Connally to temporarily suspend the convertibility of the dollar into gold or other reserve assets, except in terms of amounts and conditions that are advantageous to monetary stability and to the best interests of the United States. Now, what is this action that is very technical, what does it mean for you? Let me lay down the rebuke of what is called devaluation.
Since August 1971, the dollar has risen, the military-industrial complex has grown, and bureaucrats cannot stop spending.
Of course Nixon did not tell the truth and the monetary devaluation of the US dollar began erodes faster than ever before in U.S. history after 1971. Nixon not only opened the floodgates to a fiat world like never before, but he also provoked the unheard of Federal Reserve and the U.S. military-industrial complex en masse after 1971.
Under President Reagan, Bush, Clinton, GW Bush, Obama, Trump and Biden have the state debt swelled to $ 28.6 trillion. Now there are generations of American children who did not know how to live in a country without excessive government spending and endless wars. Meanwhile, since 1971, U.S. wages have stagnated like never before in history and citizens have been able to pay less and less over the years.
After Nixon said his actions “will not win us friends among the international money traders” he did not tell Americans that the military will need fulfill the petro-dollar keep the Ponzi.
Since Nixon’s time, presidents on both the left and right have continued to press for money and have convinced Americans that because of crises like Covid-19, 9-11, and the financial collapse in 2008, rescues are needed. In 2020 alone, almost 30% of the total existing USD was introduced into the hands of private institutions.
In 2021, the economy looks terribly dismal and investors are turning to gold and getting involved with crypto assets like bitcoin (BTC) and many others. The U.S. stock market is not in reality, the real estate market is once again extremely volatile, the Federal Reserve System owns a third of all mortgage securities and U.S. inflation is exploding.
What do you think of when Richard Nixon removed the gold standard convertibility from the U.S. dollar? Let us know what you think about this topic, in the comments section below.
Image Credits: Shutterstock, Pixabay, Wiki Commons, Economic Policy Institute, BEA, wtfhappenedin1971.com,
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