Loading ...I read lots of economic books back in the 1970s and have a pretty good handle on the history. And have posted long ago about the evolution of the financial system since 1913. So I read the story, which seemed to have far more explanation than needed, until I got to the part below, and STOPPED reading.
PART:
“On December 29, 1969, the yield on the long-term government bond hit 8.05 percent. With interest rates, both long term and short term, at such high levels, the demand for gold bullion was finally broken, and the dollar price of gold fell to around $35 an ounce by 1970. For the moment, the dollar-gold exchange standard had been saved.” The Industrial Cycle and the Collapse of the Gold Pool in March 1968, critiqueofcrisistheory.wordpress.com
In February 1970 the closing gold price on the London market averaged US$34.99. On August 15, 1971, U.S. President Nixon ended the convertibility of the dollar into gold. With gold finally demonetized, the Fed and the world’s central banks were now free from having to defend their gold reserves and a fixed dollar price of gold.”
Comment:
The stories I read said Gold was trading privately in the black market at $140/oz, with the Official price at $35/oz. The artificially low $35 Official price encouraged foreign central banks (a no brainer) to send back US consumer spent dollars on imports or vacations to Europe.
(France the worst) and exchange $35 Dollars for Gold worth $140. We lost half our Gold reserves, (trade deficit, spending on imports) before Nixon stopped it because of public protests in front of the Whitehouse. Our or their Gov’t was selling our Silver at .92 cents and Gold at $35.
Back in those days the motto was “Europe First”. The dirt bags have been net baggage for the USA.
After the foreigners were “cut off” the chump US Gold gravy train, they proceeded to after 1971 to absorb our Industries. You name it. Consumer electronics, textiles, cars, tools etc. The “drainage” or embezzlement culminated in the summer of 2008. How could the author leave all that out??? Unless it was explained further down.