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Thread: From Gold To Nothing: How 1971 Changed Everything In The Economy

  1. #1

    From Gold To Nothing: How 1971 Changed Everything In The Economy

    https://www.zerohedge.com/news/2019-...ything-economy

    Via Duino Schiappapietra,

    The monetary system is a major component of the whole economic system. Despite that, today we take it for granted and donít even ask ourselves how it works and if it is the best solution available or the correct way to manage things.

    Even though it appears to be stable, history shows that monetary systems changed periodically in the last century (20Ė30 years on average).

    The main difference between our current monetary system and previous monetary system is that today it is entirely based on FIAT Currency, in contrast to older monetary systems that were backed by gold.

    That means that what we call money is a government-issued currency that has zero intrinsic value and is not backed by anything.

    From 1971, this kind of system allows central banks to literally control the economy and opened a new chapter in the world monetary system.

    In this article, I am going to briefly explain why 1971 changed everything and what are potential consequences of such a decision.

    Since 1971 the world runs on FIAT currencies that are not gold-backed in any way. This changes everything.

    ...
    Full article at link.

    ---

    Zippy should be along shortly to say there is no problem with not having gold. Ever seen a country start with anything BUT gold and collapse with anything BUT a Fiat Currency?
    1776 > 1984

    The FAILURE of the United States Government to operate and maintain an
    Honest Money System , which frees the ordinary man from the clutches of the money manipulators, is the single largest contributing factor to the World's current Economic Crisis.

    The Elimination of Privacy is the Architecture of Genocide

    Belief, Money, and Violence are the three ways all people are controlled

    Quote Originally Posted by Zippyjuan View Post
    Our central bank is not privately owned.



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  3. #2
    Fiat gives the powerful nearly unlimited power to steal and cashless would make that power truly unlimited.
    Never attempt to teach a pig to sing; it wastes your time and annoys the pig.

    Robert Heinlein

    Give a man an inch and right away he thinks he's a ruler

    Groucho Marx

    I love mankindÖitís people I canít stand.

    Linus, from the Peanuts comic

    You cannot have liberty without morality and morality without faith

    Alexis de Torqueville

    Those who fail to learn from the past are condemned to repeat it.
    Those who learn from the past are condemned to watch everybody else repeat it

    A Zero Hedge comment

  4. #3
    Before 1971 no country ever failed. There were no recessions, bubbles, inflation, or unemployment. It was an amazing time to be alive!
    Quote Originally Posted by Swordsmyth View Post
    The quality seems to have dropped significantly since I came here, I guess you get what you pay for.
    "There is always a tweet. That has become accepted fact in the Trump presidency: For every pronouncement the President makes, there is at least one tweet from his past that directly contradicts his current view." -CNN

    I am Zippy and I approve of this post. But you don't have to.

  5. #4
    Got to teach folks that gold IS money. And reclaim what was stolen in 1933.
    The sycophant masses are the most crushing rebuttal to my contention that man should be free. They prove by their actions they are not worthy of freedom, because they do not display the capacity for independent thought.

  6. #5
    Quote Originally Posted by merkelstan View Post
    Got to teach folks that gold IS money. And reclaim what was stolen in 1933.
    Do you use gold when you buy things- you know, use it as money?
    Last edited by Zippyjuan; 06-05-2019 at 04:05 PM.
    Quote Originally Posted by Swordsmyth View Post
    The quality seems to have dropped significantly since I came here, I guess you get what you pay for.
    "There is always a tweet. That has become accepted fact in the Trump presidency: For every pronouncement the President makes, there is at least one tweet from his past that directly contradicts his current view." -CNN

    I am Zippy and I approve of this post. But you don't have to.

  7. #6
    Quote Originally Posted by Zippyjuan View Post
    Before 1971 no country ever failed. There were no recessions, bubbles, inflation, or unemployment. It was an amazing time to be alive!
    It was far better and the bad things that happened along with the slow constant theft and dis-empowerment were not so bad.
    Never attempt to teach a pig to sing; it wastes your time and annoys the pig.

    Robert Heinlein

    Give a man an inch and right away he thinks he's a ruler

    Groucho Marx

    I love mankindÖitís people I canít stand.

    Linus, from the Peanuts comic

    You cannot have liberty without morality and morality without faith

    Alexis de Torqueville

    Those who fail to learn from the past are condemned to repeat it.
    Those who learn from the past are condemned to watch everybody else repeat it

    A Zero Hedge comment

  8. #7
    Quote Originally Posted by Swordsmyth View Post
    It was far better and the bad things that happened along with the slow constant theft and dis-empowerment were not so bad.
    Yes, that Great Depression was truely amazing, wasn't it? Why can't we have things like that today?
    Quote Originally Posted by Swordsmyth View Post
    The quality seems to have dropped significantly since I came here, I guess you get what you pay for.
    "There is always a tweet. That has become accepted fact in the Trump presidency: For every pronouncement the President makes, there is at least one tweet from his past that directly contradicts his current view." -CNN

    I am Zippy and I approve of this post. But you don't have to.

  9. #8
    Quote Originally Posted by Zippyjuan View Post
    Yes, that Great Depression was truely amazing, wasn't it? Why can't we have things like that today?
    We do and worse, it would have been much worse had FDR been completely free of the gold standard.
    Never attempt to teach a pig to sing; it wastes your time and annoys the pig.

    Robert Heinlein

    Give a man an inch and right away he thinks he's a ruler

    Groucho Marx

    I love mankindÖitís people I canít stand.

    Linus, from the Peanuts comic

    You cannot have liberty without morality and morality without faith

    Alexis de Torqueville

    Those who fail to learn from the past are condemned to repeat it.
    Those who learn from the past are condemned to watch everybody else repeat it

    A Zero Hedge comment



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  11. #9
    did gold prices change wildly on the gold standard?

  12. #10
    Quote Originally Posted by kfarnan View Post
    did gold prices change wildly on the gold standard?
    Government defined how many dollars it took to buy an ounce of gold. There was no free market price so it did not change unless the government changed it.
    Quote Originally Posted by Swordsmyth View Post
    The quality seems to have dropped significantly since I came here, I guess you get what you pay for.
    "There is always a tweet. That has become accepted fact in the Trump presidency: For every pronouncement the President makes, there is at least one tweet from his past that directly contradicts his current view." -CNN

    I am Zippy and I approve of this post. But you don't have to.

  13. #11
    Quote Originally Posted by Zippyjuan View Post
    Do you use gold when you buy things- you know, use it as money?
    I've used silver certificates which you could cash in for real PM, to buy things & silver coins too. Years ago.

    Ya, there used to be real money.
    Quote Originally Posted by Swordsmyth View Post
    You only show up to attack Trump when he is wrong
    DACA S**thole Dreamers - Make America Great Again?

  14. #12
    Quote Originally Posted by Zippyjuan View Post
    Government defined how many dollars it took to buy an ounce of gold. There was no free market price so it did not change unless the government changed it.
    Wrong.

    Gold was money, a dollar was a certain amount of gold, the papers people traded around were just receipts for a certain amount of gold.
    Never attempt to teach a pig to sing; it wastes your time and annoys the pig.

    Robert Heinlein

    Give a man an inch and right away he thinks he's a ruler

    Groucho Marx

    I love mankindÖitís people I canít stand.

    Linus, from the Peanuts comic

    You cannot have liberty without morality and morality without faith

    Alexis de Torqueville

    Those who fail to learn from the past are condemned to repeat it.
    Those who learn from the past are condemned to watch everybody else repeat it

    A Zero Hedge comment

  15. #13
    The classic gold standard was usurped by the bretton woods gold standard.

  16. #14
    Quote Originally Posted by kfarnan View Post
    did gold prices change wildly on the gold standard?
    Price of gold should be used as the metric for every other metric. You see, its not the price of gold that goes up and down. Gold does NOT change its value. You cant print it. You cant make more of it. You cant destroy the gold that exists already. Despite what Zippy says, the price of gold, because of its natural scarcity, it will always maintain real value. Currency was tied to gold once upon a time, and when it was, that currency was exceptionally stable. Once our currency had been disconnected from being backed by gold, which limited how many paper dollars the US Govt could "print" / "borrow" into existence, the value of the dollar went all over the place.

    So to answer your question, gold didnt change, it never did. What changed was the purchasing power of the Paper Currency. The less value that Paper Currency has, the higher the Gold price. Same with Inflation. It isnt that the cost of things continue to go up up up, its that the purchasing power of the currency has gone down down down. The US Dollar has lost 97% of its value since we disconnected from a Gold Standard.

    So, question. How much actual gold, real physical gold got printed during all that time?
    1776 > 1984

    The FAILURE of the United States Government to operate and maintain an
    Honest Money System , which frees the ordinary man from the clutches of the money manipulators, is the single largest contributing factor to the World's current Economic Crisis.

    The Elimination of Privacy is the Architecture of Genocide

    Belief, Money, and Violence are the three ways all people are controlled

    Quote Originally Posted by Zippyjuan View Post
    Our central bank is not privately owned.

  17. #15
    Gold's value does change over time. And not just relative to the dollar. Relative to other things as well. Take silver for instance. Silver is also supposed to hold its value. IF both silver and gold are holding their value, their relative values should not change. Or if so, not by much. Value is relative and subjective- things have value because people think they have value.


    Last edited by Zippyjuan; 06-08-2019 at 11:47 AM.
    Quote Originally Posted by Swordsmyth View Post
    The quality seems to have dropped significantly since I came here, I guess you get what you pay for.
    "There is always a tweet. That has become accepted fact in the Trump presidency: For every pronouncement the President makes, there is at least one tweet from his past that directly contradicts his current view." -CNN

    I am Zippy and I approve of this post. But you don't have to.

  18. #16
    Quote Originally Posted by Zippyjuan View Post
    Gold's value does change over time. And not just relative to the dollar. Relative to other things as well. Take silver for instance. Silver is also supposed to hold its value. IF both silver and gold are holding their value, their relative values should not change. Or if so, not by much.


    That's true of everything but if you pick a single rare item like gold its relative value will remain much more stable and/or rise and it will be much harder for someone to use it to rob everyone else.
    Never attempt to teach a pig to sing; it wastes your time and annoys the pig.

    Robert Heinlein

    Give a man an inch and right away he thinks he's a ruler

    Groucho Marx

    I love mankindÖitís people I canít stand.

    Linus, from the Peanuts comic

    You cannot have liberty without morality and morality without faith

    Alexis de Torqueville

    Those who fail to learn from the past are condemned to repeat it.
    Those who learn from the past are condemned to watch everybody else repeat it

    A Zero Hedge comment



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