Tag Archives: Richard Nixon

Part III of IV by Claudio Grass The Nixon Shock: Where we stand today A lot has been said and written about the inflationary effects that the closure of the gold window had on the real economy and on ordinary people’s lives. And rightfully so, as this has been among the most devastating consequences of the end of the gold standard and it affected countless workers and savers who have been seeing their incomes wither over time, thanks to the hidden tax of inflation. However,...

Part II of IV by Claudio Grass The lasting impact of the Nixon Shock The economic and monetary consequences of Nixon’s decision to end the convertibility of the US dollar to gold are as numerous as they are severe. It marked the start of five decades of monetary and fiscal insanity and it unleashed unprecedented borrowing and deficit spending sprees. Debt-fueled “growth” became the name of the game and currency manipulation came to define both political strategies and central...

Part I of IV by Claudio Grass What happened and why  This year marked the 50th anniversary of President Nixon’s decision to unilaterally close the “gold window”. The impact of this move can hardly be overstated. It triggered a tectonic shift of momentous consequences and it changed not just the global economy and the monetary realities, but it also shaped modern politics and severely affected our society at large. The Nixon Shock In July 1944, representatives from 44...

Today is the 50th anniversary of the “Nixon shock”, the day President Richard Nixon closed the gold window and ended the post-WWII Bretton Woods currency agreement. That agreement, largely a product of John Maynard Keynes, pegged the dollar to gold and most other currencies to the dollar. It wasn’t a true gold standard as only other countries that were party to the agreement could demand gold in exchange for their dollars, but it was at least a standard of some...

Once Upon a Time… Prior to 1933, the name “dollar” was used to refer to a unit of gold that had a weight of 23.22 grains. Since there are 480 grains in one ounce, this means that the name dollar also stood for 0.048 ounce of gold. This in turn, means that one ounce of gold referred to $20.67. Now, $20.67 is not the price of one ounce of gold in terms of dollars as popular thinking has it, for there is no such entity...

  Hell With Air-Conditioning LAS VEGAS – It was 113 degrees outside when we rolled through Baker, California, a few days ago. We drove along in comfort, but our sympathies turned to the poor pilgrims who made their way to California in covered wagons. How they must have suffered! Our suffering didn’t begin until we checked into the Planet Hollywood Hotel in Las Vegas. What a horrible place. You stand in line for half...

  The Transition   “The chaos that one day will ensue from our 35-year experiment with worldwide fiat money will require a return to money of real value. We will know that day is approaching when oil-producing countries demand gold, or its equivalent, for their oil rather than dollars or euros. The sooner the better.” Ron Paul The intricate relationship between energy markets and our global financial system, can be...