A gallon of milk sold for $1.18... Walt Disney World opened
its gates in Florida... Texas Instruments introduced its first
calculator, the $400 “Pocketronic”... And on August 15, 1971,
President Richard Nixon shocked the world when he killed the
international gold standard. It was a time of global instability,
fueled by the Vietnam War. Foreign nations were starting to
question the gold holdings that supposedly backed every U.S.
dollar. Indeed, they were onto something.
President Nixon knew the U.S. had run up so much debt, it
couldn’t pay back its bills with the yellow metal. He also
knew it would be disastrous if other countries panicked and
started, in effect, a bank run on the U.S. Treasury. So he
addressed the nation – his speech came to be known as “The
Nixon Shock” – and announced the gold-backed dollar had
come to an end. In retrospect, it would have been the
perfect time for America to recognize that we needed to
get our fiscal house in order... that we were spending
more than we actually had. Of course, that never happened...
Rather, the dollar was established as a “fiat currency”...
a currency whose value is based solely on our faith in the
sponsoring government. (By the way, the term “fiat” comes
from the Latin for “it shall be.” In other words, it’s not
backed by gold or silver... but, basically, hot air.) As
a result, the U.S. continued printing dollars – completely
unchecked! Billions were needed to pay for the ever-
expanding war in Southeast Asia... And that was on top
of ballooning costs from Lyndon Johnson’s “Great Society”
government expansion. Sure enough, with freshly minted
dollars flooding the markets, Nixon began to worry about
the weakening of the dollar. So, love him or hate him,
Nixon and his staff came up with what most agree was a
brilliant way to sidestep the problem... Nixon’s (Jew)
secretary of state, Henry Kissinger, made a “Faustian
deal” with Saudi Arabia’s royal family, represented by
King Faisal. It was a deal that would dramatically
impact the global economy for the next 42-plus years.
Essentially, they agreed to replace America’s gold-backed
dollars with “black gold”-backed dollars. In other words,
oil. Better yet, the backing would not even be oil that
the U.S. owned itself! In March of 1973, the plot was
hatched...
- Petrodollar
- the-big-leak.JPG (25.03 KiB) Viewed 2367 times
Follow link and then...
Exit page...Confirm Navigation... Click "Stay on this page."Wade says, "A sales pitch, but also a very good read!"