Gold and the Dollar
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Gold and the dollar.
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The downfall of the American dollar happened with the removal of gold backing by Executive Order 6102. Going from honest, sound money into political money.
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Executive Order 6102 signed on April 5, 1933, by U.S. President Franklin Delano Roosevelt required citizens to turn over their gold…
All persons holding more than five ounces of gold is to deliver their “gold coin, gold bullion, and gold certificates, now owned by them to a Federal Reserve Bank, branch or agency, or to any member bank of the Federal Reserve System.”
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By outlawing the saving of gold, Roosevelt intended to destroy gold as an everyday currency, transferring the purchasing power of gold to the U.S. government.
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In exchange for Americans’ gold, the government gave the Federal Reserve Notes at a set exchange rate per ounce.
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Soon thereafter, FDR devalued the Federal Reserve Note by resetting the exchange rate, thus overcharging citizens at a higher rate who complied with the order.
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The U.S. dollar is no longer backed by gold.
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In 1933, the U.S. government was required to have gold in order to expand the volume of currency in circulation. Those days have long since passed, as there is no longer any (non-political) standard tied to the increase of America’s money supply.
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In 1965, President Johnson passed the Coinage Act, removing silver from coins and replacing them with clad coins, a mixture of nickel and copper.
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Then in 1971, President Nixon ended the Bretton Woods agreement and the ability of foreign central banks to convert their dollars back into gold at a fixed rate.
The Bretton Woods Agreement established a system through which a fixed currency exchange rate could be created using gold as the universal standard. The agreement involved representatives from 44 nations and brought about the creation of the International Monetary Fund ( IMF ) and the World Bank.
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The removal of gold backing from our paper currency completed the transition from sound money to a full paper currency monetary system, resulting in an explosion of debt and inflation.
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Today, the Federal Reserve continues to create money out of thin air to help finance the deficit.
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Bottom line
Now you know your dollar is not worth anything, now is the time to buy Gold.
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