How has it worked? Well, subsequent to Nixon’s decision 40 years ago, the U.S. dollar has fallen from 1/35th of an ounce of gold to 1/1750th of an ounce of gold today! This is not the fault of the market or speculators; rather it is the fault of profligate governments and central bankers.
Monday, August 15, 2011
Fiat $'s Birthday
Forty years ago today on August 15, 1971, the President Richard Nixon, declared the inconvertibility of the dollar into gold. As a result, the dollar became a fully fiat currency, backed not by gold but by the promise of the U.S. government. This meant the end of a historical and monetary rule. The Federal Reserve System can now print any amount of money.
How has it worked? Well, subsequent to Nixon’s decision 40 years ago, the U.S. dollar has fallen from 1/35th of an ounce of gold to 1/1750th of an ounce of gold today! This is not the fault of the market or speculators; rather it is the fault of profligate governments and central bankers.
How has it worked? Well, subsequent to Nixon’s decision 40 years ago, the U.S. dollar has fallen from 1/35th of an ounce of gold to 1/1750th of an ounce of gold today! This is not the fault of the market or speculators; rather it is the fault of profligate governments and central bankers.
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