The 50th Anniversary of “Nixon Shock”: How to Suspend the Convertibility of the Dollar with Gold Fueled by Today’s Fiat World

About 50 years ago today, Americans discovered the “Nixon Shock” when the 37th President of the United States suspended the convertibility of the US dollar into gold. Since then, the US economy has never been the same, as many believe that Richard Nixon ushered in a new era of uncontrollable fiat money creation.

50 years ago today, Nixon rocked the world

Today is the anniversary of when US President Richard Milhous Nixon told the American public on August 15, 1971 that the administration and the Treasury would immediately suspend convertibility of the US dollar into gold. Nixon basically revealed the removal of the gold standard from the dollar and he would never come back. Moreover, what the American public is not fully aware of is why Nixon and his cronies decided to remove the exchangeability of gold with the dollar.

The reason Nixon removed the gold standard was that the United States couldn’t hide the massive war spending that fueled the Vietnam War. Part of the Bretton Woods deal was designed for the United States to hold three quarters of the world’s gold. War spending under Nixon was so massive that other countries like France began to notice the United States printing massive amounts of USD. On the afternoon of Friday, August 13, 1971, Nixon and members of the Treasury met secretly at Camp David.

According to eyewitness accounts and reports, the Camp David secret meeting was very controversial and led to a huge debate. At the end of the meeting, the Nixon administration finally decided to break the Bretton Woods agreement. Speaking on television on Sunday, August 15, 1971, Nixon said he asked the 61st US Secretary of the Treasury John B. Connally to suspend the convertibility of gold into US dollars.

“In recent weeks, speculators have waged an all-out war on the US dollar,” Nixon said on television. “The strength of a country’s currency is based on the strength of that country’s economy – and the US economy is by far the strongest in the world. As a result, I have asked the Secretary of the Treasury to take the necessary steps to defend the dollar against speculators, ”said the 37th President of the United States. Nixon added:

I have ordered Secretary Connally to temporarily suspend the convertibility of the dollar into gold or other reserve assets, except in amounts and conditions determined to be in the interest of monetary stability and in the best interest of States- United. Now what does this action – which is very technical – what does this mean to you? Let me end the bugaboo of what is called devaluation.

Since August 1971, the value of the dollar has eroded, the military-industrial complex has grown massively, and bureaucrats cannot stop spending

Of course, Nixon was not telling the truth and the currency devaluation of the US dollar began to erode faster than ever in American history after 1971. Nixon not only opened the doors to a fiat world like never before. , but it also caused massive growth in the unaudited Federal Reserve and the U.S. military-industrial complex after 1971.

Under Presidents Reagan, Bush, Clinton, GW Bush, Obama, Trump and Biden, the national debt reached $ 28.6 trillion. There are now generations of American children who have not known what it is like to live in a country without excessive government spending and endless wars. Meanwhile, since 1971, American wages have stagnated like never before in history and citizens have been able to afford less and less over the years.

After Nixon Said His Actions “Won’t Make Us Friends Among International Money Dealers,” He Did Not Tell Americans That The Army Would Need To Apply The Petro-Dollar To Keep The Ponzi Taken. desire.

Since Nixon’s time, presidents of the left and right have continued to maintain the printing money program and have convinced Americans that due to crises like Covid-19, 9-11 and the financial collapse from 2008, bailouts are needed. In 2020 alone, nearly 30% of all US dollars in existence went into the hands of private institutions.

In 2021, the economy looks woefully bleak and investors are turning to gold and getting involved in crypto assets like bitcoin (BTC) and many more. The US stock market is not real, the real estate market is extremely hot again, the Federal Reserve owns a third of all mortgage-backed securities and US inflation is skyrocketing.

What do you think of when Richard Nixon removed convertibility from the gold standard from the US dollar? Let us know what you think of this topic in the comments section below.

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