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Re: The Gold Standard 

By: Decomposed in 6TH POPE | Recommend this post (2)
Sun, 20 Aug 23 2:56 AM | 48 view(s)
Boardmark this board | 6th Edition Pope Board 		Msg. 45137 of 60008
(This msg. is a reply to 45134 by Zimbler0)
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Zimbler0:

Re: “But, what was to keep enterprising foreigners from redeeming dollars for gold at $35 then selling the gold for more?”Nothing except their lack of U.S. dollars. Following World War II, the world was extremely poor and had no money with which to buy back gold from the U.S..

But by the 1960s, Europe was quickly recovering and one country, France, had begun doing exactly what you said. They recognized that the U.S. was overextended and had begun 'cashing in' dollars for gold. Presidents Johnson and Nixon realized that the U.S. would soon deplete its gold stockpile if it continued honoring its obligation.

It was Nixon's Secretary of State Henry Kissinger who came up with the somewhat ingenious "solution" by breaking the connection between the dollar and gold and replacing it with the petrodollar we have today. So long as the world's bourses force countries to hold trillions of American dollars to conduct oil transactions, the unbacked dollar would continue to hold special status around the globe.

That's what we did, and it sustained the country for another fifty years. But... should that situation ever change... we will be in a drastic situation. Some speculate that Saddam Hussein's 2000 insistence on selling Iraqi oil for euros is the real reason we targeted him. He represented an immediate, dire threat to our currency.

I gotta figure that if the Ukraine war ever ends, Russia is going to pose the same threat.








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Gold is $1,581/oz today. When it hits $2,000, it will be up 26.5%. Let's see how long that takes. - De 3/11/2013 - ANSWER: 7 Years, 5 Months


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The above is a reply to the following message:
The Gold Standard
By: Zimbler0 in 6TH POPE
Sun, 20 Aug 23 2:29 AM 		Msg. 45134 of 60008

Help me out here De.
What I'm seeing is extremely strange. (See correction.)

Back around 1971 Nixon took the U.S. off the Gold Standard.
( https://www.federalreservehistory.org/essays/gold-convertibility-ends )

And the U.S. was supposed to redeem American currency at the rate of $35 an ounce.

Around 1971 (according to this site) gold was selling for just under $300 (Wrong) an ounce . .
( https://www.macrotrends.net/1333/historical-gold-prices-100-year-chart )

Correction. There was a block labeled 'inflation adjusted'. I clicked it off and got 'better numbers'. It seems in 1971 gold was running from $37 to $43 an ounce.

But, what was to keep enterprising foreigners from redeeming dollars for gold at $35 then selling the gold for more?

Zim.

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