Inflation And The Gold Standard

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ewilkerson's picture
ewilkerson
Status: Gold Member (Offline)
Joined: Jul 18 2010
Posts: 390
Inflation And The Gold Standard

I just watched a lecture that went through the history of money in America.  The lecturer, James G Rickards, showed several times we had defaulted on our debt by debasing our currency.  One of the ways he pointed out was when Roosevelt sequestered all the Gold in America and increased the official value of Gold.  This had the immediate affect of decreasing the value of the dollar by 50% or so, so people with US government debt were, naturallly, paid back 50% on the dollar.

He added that this occured after we were in a currency war and that both political parties were on board.  We are in a currency war right now, and he believes that the Government's next move will possibly be at least a partial Gold Standard with an official price of around $7000.

Another point was made that there is a law on the books from the 1970's that in times of war the President can have almost dictitorial powers.  It was his thought that the President would not confiscate American's Gold but the 7,000 tons deposited with the New York Fed from other countries.  His main point in all of this is that America has the best Gold reserves of all the countries, so it would be perfect again to debase the dollar with this tactic.

Love some opinions.  These are desperate times and there are many possible outcomes..

outerdnn.outer.jhuapl.edu/rethinking/VideoArchives/MrJamesGRickardsPresentationVideo.aspx

Cheers,

Ernest

ewilkerson's picture
ewilkerson
Status: Gold Member (Offline)
Joined: Jul 18 2010
Posts: 390
I know most of this is old

I know most of this is old information, but his idea of the NY Fed was interesting.  Ernest

jumblies's picture
jumblies
Status: Silver Member (Offline)
Joined: Jun 13 2010
Posts: 244
The US hasn't officially

The US hasn't officially declared war since the 40's (despite the war on terror, war on drugs, war on poverty, war on crime, war on the public and the war on the constitution). So I don't see how the POTUS can use any war powers, not that he seems to be bothered by such trivialities.

As for a return to a gold standard, or part thereof, I'm hoping for something tethered to reality like that. But who knows. Based on the gold purchasing by various central banks I think it's a distinct possibility. But I also don't think the Fed has the gold which they're meant to have (I think they sold it, or part of it). Perhaps they're desperately trying to buy it back.

 

ewilkerson's picture
ewilkerson
Status: Gold Member (Offline)
Joined: Jul 18 2010
Posts: 390
jumblies,  Your're right

jumblies,  Your're right about declaring war, but I believe that it is worded like in a National emergency to where it would be easier than having Congress declare war.  I don't think many presidents would use such a tactic anyway to do away with debt.  But in extreme circumstances anything is possible.  The riots are already spreading to here.  I'm glad to see the people stand up to that few % that control everything.

As for the Fed having the gold I don't know what to think about it.  The thing is, too, you still have Peak Oil hanging there.

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