Forty One Years Of A Soon To Fail Fiat Currency Experiment
AUGUST 14, 2012
Aftermath of Bretton Woods: 41 Years Later
On August 15, 1971, then United States President Richard Nixon announced on national television a dramatic cut to the last ties of gold with the US dollar.
The "Nixon Shock" effectively created the world's largest fiat currency experiment by converting the US dollar and other dollar-reserved fiat currencies into the dying debt based monetary system we have today.
The results speak for themselves and are strikingly similar across the globe for most nations.
The data below, provided through the St. Louis Federal Reserve's website, signals the striking rise in deficits, the substancial rise in debt levels, and the diminishing purchasing power of the US dollar.
Debt levels have escalated astronomically. As a result this burden is sure to fall on all who hold fiat currencies, currencies directly reserved and tied to a growing and un-payable debt load.
Since the Federal Reserve was created, the US dollar has continually lost purchasing power year after year. A US dollar in 1971 had 4.5 times the purchasing power as it does today.
The fiat currency game gives governments and central banks a substantial edge over the masses. By limitlessly issuing fiat currency the government assures it can repay its debt in depreciated fiat currency. In Mike's own words:
"If you know how the world financial system works, you know the game that you are playing. And If you don't know the game and the rules that we're playing by you are going to get slaughtered." - Mike Maloney
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