The following is an excerpt from the August Issue of The Dollar Vigilante)

Today, August 15, marks the 40th birthday of the Federal Reserve Note as a completely fiat currency. 

On that date, on August 15, 1971, Richard Nixon commandeered the airwaves to announce the closing of the gold window.  According to him, this was necessary to protect the US dollar from attacks from the "international money speculators'. (click here to view video)

According to Nixon, the problems weren't caused by the debt and inflation produced by the military industrial complex and the fractional reserve banking system in the sixties in support of the Vietnam war and the expansion of American empire (following WWII).  It was not that the so called "civil" war turned the concept of government upside down and empowered the Federal government, or the creation of the system of public debt by the Hamiltonians who believed that putting people in hock solidifies public support of their government.  No, we didn't need to do away with the central bank, burdensome competition restricting regulation or the use of force in matters of money... and many of the same problems that are setting the streets in Athens on fire.  

The problem, according to Nixon, wasn't that the US had been bankrupted again, this time by Lyndon B. Johnson's disastrous Vietnam War starting in 1965 and his welfare programs (War on Poverty).

No, none of these were the problem.  What was the problem according to Nixon? It was the universal scapegoat used by all governments and central bankers: the speculators.

The reason Nixon was forced to close the gold window was that overspending on the wars and welfare programs left them with empty coffers and neither they nor Congress were willing, or able, to raise taxes to support an increasingly unpopular war. So, Johnson and then Nixon borrowed, and then spent, billions of dollars. In the process, they infused a huge amount of money into the economy, which led to serious inflation. It also led to a balance of trade problem in which the U.S. was importing far more than it was exporting. As a result, more and more US dollars came to be held outside the country.

To keep foreign countries from trading in their surplus dollars for gold, Nixon, in 1971, unilaterally decreed that, from now on, the U.S. would not exchange dollars for gold for anyone.  It was the second de-facto default since the Federal Reserve was created.

The Slippery Slope

The first default, in 1933, set the US on a course for failure.  By seizing real money (gold) and issuing currency only somewhat backed by that gold, the underpinnings of a free market economy had been seriously weakened.  By 1971, again, this system, politically, was untenable.  On August 15, 1971, the US underwent its second default and the countdown to the next default began, this time at a more accelerated pace.

Every chart pertaining to money or the price of things, whether they be commodities, houses or stocks, all changed on that date.

The money supply, unchained by anything, went from being on a mild incline to near vertical by 2008.

And, although the Consumer Price Index is not a good way to gauge the effects of monetary inflation on prices, it does provide some basis for understanding of its effects over the long term:

Again, after a century of declining prices the creation of the Federal Reserve began an uptick in prices by 1920 and after 1971, it went vertical.

Prices haven't skyrocketed since 1971 - not in real terms.  Only in terms of the constantly depreciating dollar, a collapse that has only increased since its gold backing was removed.

Will the fiat dollar live to see 50?  Highly unlikely - at least not in its current form.  It will be lucky to see 42 at the rate it is going.  So, enjoy your birthday while it lasts, dollar.  Your fate, the same as every other unbacked fiat currency in history, draws near.

TDV Subscribers receive updates and advice on a regular basis on how to both profit and survive during the US dollar collapse and TEOTMSAWKI (The End Of The Monetary System As We Know It).  It's not too late to prepare but time is running out.  Subscribe to TDV to be a part of our community of dollar crash survivors.

Views: 85

Reply to This

Replies to This Discussion

Schools don't teach this about Nixon, he is mostly remembered for Watergate.

Do schools really teach? 

As far as I remember they mostly indoctrinate

Bingo!

RSS

"Destroying the New World Order"

TOP CONTENT THIS WEEK

THANK YOU FOR SUPPORTING THE SITE!

mobile page

12160.info/m

12160 Administrators

 

Latest Activity

Sandy posted a photo
2 hours ago
Less Prone posted a video

President Trump addresses U.N. General Assembly - FULL SPEECH

President Donald Trump speaks at the United Nations General Assembly in New York City.Full video here: https://www.c-span.org/event/white-house-event/preside...
3 hours ago
Burbia posted a video

2 MIN AGO: Western Provinces MAJOR New WEXIT Announcement - Canada EXPLODES!

In a stunning turn of events, Western provinces just made a major new WEXIT announcement — and it’s shaking the foundations of Canadian unity. Is Western sep...
11 hours ago
Doc Vega posted a blog post

How You Provoke a Civil War

In the world of counter intelligence which is simply one aspect of many pertaining to asymmetrical…See More
yesterday
Burbia commented on Burbia's video
Thumbnail

CHARLIE KIRK WAS CNP! JOSH REEVES 9-11-25

"I don't follow as much with Josh Reeves than I use to. He seems to be a documentary producing…"
Friday
Burbia posted a video

CHARLIE KIRK WAS CNP! JOSH REEVES 9-11-25

DONATE-paypal-dayglow76@yahoo.comCashapp-reevesradioVenmo-Josh-Reeves-61FILMS AND AUDIOBOOKS DOWNLOAD STORE-https://store.payloadz.com/results/242828-josh-re...
Friday
Doc Vega posted blog posts
Thursday
tjdavis posted a video

CHARLIE KIRK VIDEO THAT KEEPS GETTING REMOVED OFF OF SEVERAL PLATFORMS

I had not planned to share this publicly, but I believe Advar, who spoke with Charlie Kirk while I was very ill, would have wanted me to. After my interview ...
Thursday
pohonemas33 team commented on Chris of the family Masters's photo
Thumbnail

Gold-Coast-Message

"untuk bermain slot, kamu cukup kunjungi situs kacang99 pasti langsung gacor"
Wednesday
Doc Vega posted blog posts
Wednesday
Burbia posted a blog post

Former President Trump?

When was this article written? It is attributed to Victor Davis Hanson. He is a Fellow at Hoover…See More
Tuesday
Doc Vega posted a blog post

Don’t Go Hunting For Bigfoot

It is October 19, 2019 at 5:46 AM. This will be the last time any visual evidence of Mark is seen…See More
Monday
tjdavis posted a video

Most Corrupt Series: Elizabeth Warren | Forgotten History

Elizabeth Warren has built her reputation as a "reformer", but her political career has also drawn sharp criticism. Questions have been raised about her fina...
Sep 19
Doc Vega commented on Doc Vega's blog post Ashrams and Moonies Perfect Case for Mind Control
"less prone, Thanks for your support Buddy! "
Sep 18
Doc Vega posted a photo

main-thumb-ti-6724328-100-cnsgqkrgkrhyeyyerazynmuwoplecnbx

When will they put Trump on Mt. Rushmore?
Sep 18
Doc Vega's 4 blog posts were featured
Sep 18
Burbia's blog post was featured

Charlie Kirk Assassination

September 10th 2025 in Utah Turning Point USA CEO has been assassinated. Coincidentally,  answering…See More
Sep 18
Charles Magus's blog post was featured

FURTHER PROOF OF WALK-INS! Prisoners of the Dulce Base by Sherry Shriner

There is a real connection between the Cabal and what is happening at this Undergroung…See More
Sep 18
Less Prone favorited Doc Vega's blog post Ashrams and Moonies Perfect Case for Mind Control
Sep 18
Less Prone commented on tjdavis's blog post Sentient World Simulation
"Cannot open the link"
Sep 18

© 2025   Created by truth.   Powered by

Badges  |  Report an Issue  |  Terms of Service

content and site copyright 12160.info 2007-2019 - all rights reserved. unless otherwise noted