| The Death Of The Dollar |
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| Written by Anne Trimble |
| Tuesday, 19 April 2011 15:21 |
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On August 15, 1971, Richard Nixon destroyed the link between the dollar bill and gold. Prior to his decision, one Troy ounce of gold could be exchanged for $35 in American currency. By replacing the US gold standard, a fiat currency replaced a currency that offered guaranteed convertibility.
On August 15, 1971, Richard Nixon destroyed the link between the dollar bill and gold. Prior to his decision, one Troy ounce of gold could be exchanged for $35 in American currency. By replacing the US gold standard, a fiat currency replaced a currency that offered guaranteed convertibility. The less debt and the greater the stability of a country's economy, the more valuable was its currency because the value of its currency was determined by the ratio of the country's debt to its Gross Domestic Product (GDP). Ever since Nixon removed the gold standard, all currencies, including the dollar, have been forced to float in the global marketplace. A gold standard limits government spending. The value of the dollar dives when politicians know they can print dollars to fund every pet project. They win votes by devaluing the money in your wallet. On the gold standard, every dollar printed had to be backed by gold. Nixon's decision opened wide the doors to the inflation rampant in the US today. Nixon's decision is a major cause for the upcoming collapse of the dollar and the introduction of a new, devalued currency. It is just a matter of time. American citizens are going to have to solve the problem by owning gold and silver because the politicians are not going to solve the problem. Most Americans, like our Founding Fathers, favor a gold standard because it creates a limited and frugal government. The gold standard was a friend of all Americans. It helped them keep the value of the money they worked hard to earn and save. Gold and silver solves the problems related to fiat currencies. Most people for thousands of years have loved gold and silver primarily for its ability to protect the value of our savings in a compact, easily possessed form. Modern gold-haters are modern politicians and central bankers. A gold standard prevents them from creating money out of thin air. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Want to find out more aboutgold and silver investments, then visit Anne Trimble's site on how to choose the best precious metal investments for your needs. |