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

tjdavis posted a video

Tom Horn discusses Masonic view of 2025

Startling perspective by Tom Horn of the upcoming year: 2025
5 hours ago
Doc Vega posted a blog post
10 hours ago
cheeki kea posted a photo
18 hours ago
cheeki kea commented on Doc Vega's blog post Grooming the New Generation of Assassins
"It's a distressing state of affairs when evil leftists hardwire impressionable students and…"
18 hours ago
Doc Vega commented on Doc Vega's blog post This Memorable Anthem Given by Nick Freitas Hit the Nail on the Head Please Listen!
"Burbia Charlie Kirk's wife is a real firebrand! God bless that poor woman! "
yesterday
Doc Vega commented on Doc Vega's blog post This Memorable Anthem Given by Nick Freitas Hit the Nail on the Head Please Listen!
"Burbia thanks for the videos! "
yesterday
Doc Vega posted blog posts
yesterday
Burbia commented on tjdavis's video
Thumbnail

Charlie Kirk: Grief And Outrage From Turning Point USA in Phoenix

"Early reports said a.second shooter was there. Talk of Dischord chats. Peyton Gendron was coerced…"
yesterday
tjdavis posted a video

America In Crisis: Illegals and Drug Smugglers Have Us Beat

An inside look at how bad the situation is at the Arizona/Mexico border. This exclusive tour with retired Arizona Sheriff Mark Lamb reveals just how bad thin...
Monday
Burbia posted a video

Sam Hyde Show: This is You

support the show: https://www.mde.tv/▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬🔥 BUY EXTREME PEACE on MDE.TV 🔥https://www.mde.tv/series/extreme-peace▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬...
Monday
Burbia commented on Sandy's photo
Monday
Burbia commented on Sandy's photo
Monday
Sandy posted a photo
Sunday
tjdavis posted a video

Charlie Kirk: Grief And Outrage From Turning Point USA in Phoenix

We went to Charlie Kirk's Turning Point USA headquarters in Phoenix to talk with people who were there to pay their respects.►Join my community to get exclus...
Saturday
Doc Vega posted blog posts
Saturday
Burbia commented on Doc Vega's blog post This Memorable Anthem Given by Nick Freitas Hit the Nail on the Head Please Listen!
Saturday
Doc Vega posted blog posts
Friday
Doc Vega commented on Doc Vega's blog post A Few More Rats in Your Skull Concerning Charlie and the Rampaging Left
"cheeki kea, Yes that was released on to book sites 19 hours before the tragic event and also there…"
Friday
Burbia commented on Sandy's video
Friday
Sandy posted a video

Charlie Kirk Was Terrified Of Israel

Enjoy the videos and music you love, upload original content, and share it all with friends, family, and the world on YouTube.
Friday

© 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