Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
S&P 500 – Is a 5% Correction Enough? - 6th Dec 21
Global Stock Markets It’s Do-Or-Die Time - 6th Dec 21
Hawks Triumph, Doves Lose, Gold Bulls Cry! - 6th Dec 21
How Stock Investors Can Cash in on President Biden’s new Climate Plan - 6th Dec 21
The Lithium Tech That Could Send The EV Boom Into Overdrive - 6th Dec 21
How Stagflation Effects Stocks - 5th Dec 21
Bitcoin FLASH CRASH! Cryptos Blood Bath as Exchanges Run Stops, An Early Christmas Present for Some? - 5th Dec 21
TESCO Pre Omicron Panic Christmas Decorations Festive Shop 2021 - 5th Dec 21
Dow Stock Market Trend Forecast Into Mid 2022 - 4th Dec 21
INVESTING LESSON - Give your Portfolio Some Breathing Space - 4th Dec 21
Don’t Get Yourself Into a Bull Trap With Gold - 4th Dec 21
GOLD HAS LOTS OF POTENTIAL DOWNSIDE - 4th Dec 21
4 Tips To Help You Take Better Care Of Your Personal Finances- 4th Dec 21
What Is A Golden Cross Pattern In Trading? - 4th Dec 21
Bitcoin Price TRIGGER for Accumulating Into Alt Coins for 2022 Price Explosion - Part 2 - 3rd Dec 21
Stock Market Major Turning Point Taking Place - 3rd Dec 21
The Masters of the Universe and Gold - 3rd Dec 21
This simple Stock Market mindset shift could help you make millions - 3rd Dec 21
Will the Glasgow Summit (COP26) Affect Energy Prices? - 3rd Dec 21
Peloton 35% CRASH a Lesson of What Happens When One Over Pays for a Loss Making Growth Stock - 1st Dec 21
Stock Market Sentiment Speaks: I Fear For Retirees For The Next 20 Years - 1st Dec 21 t
Will the Anointed Finanical Experts Get It Wrong Again? - 1st Dec 21
Main Differences Between the UK and Canadian Gaming Markets - 1st Dec 21
Bitcoin Price TRIGGER for Accumulating Into Alt Coins for 2022 Price Explosion - 30th Nov 21
Omicron Covid Wave 4 Impact on Financial Markets - 30th Nov 21
Can You Hear It? That’s the Crowd Booing Gold’s Downturn - 30th Nov 21
Economic and Market Impacts of Omicron Strain Covid 4th Wave - 30th Nov 21
Stock Market Historical Trends Suggest A Strengthening Bullish Trend In December - 30th Nov 21
Crypto Market Analysis: What Trading Will Look Like in 2022 for Novice and Veteran Traders? - 30th Nov 21
Best Stocks for Investing to Profit form the Metaverse and Get Rich - 29th Nov 21
Should You Invest In Real Estate In 2021? - 29th Nov 21
Silver Long-term Trend Analysis - 28th Nov 21
Silver Mining Stocks Fundamentals - 28th Nov 21
Crude Oil Didn’t Like Thanksgiving Turkey This Year - 28th Nov 21
Sheffield First Snow Winter 2021 - Snowballs and Snowmen Fun - 28th Nov 21
Stock Market Investing LESSON - Buying Value - 27th Nov 21
Corsair MP600 NVME M.2 SSD 66% Performance Loss After 6 Months of Use - Benchmark Tests - 27th Nov 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

The 45th Anniversary of The Most Destructive Event In Modern Monetary History

Interest-Rates / Financial Markets 2016 Aug 18, 2016 - 12:17 PM GMT

By: Jeff_Berwick

Interest-Rates

The US government, bankrupt yet again after another disastrous war of aggression, had its back pushed to the wall in 1971.

Up until that point, foreign central banks could redeem US dollars directly with the US Treasury in exchange for gold.  And, recognizing that the US was essentially bankrupt, foreign central banks, especially France, began to demand gold instead of the dollar.


And then, on August 15, 1971, Richard “I’m Not A Crook” Nixon announced the monetary shot heard around the world.

He announced that due to the shadowy and intangible “money speculators” he would “defend” the dollar by removing its convertibility into gold “temporarily”.

It was, unquestionably, the most destructive event in modern monetary history… yet hardly anyone remembers it or knows about it.

Prior to 1971, the US government and Federal Reserve were restricted in the amount of debt they could go into and the amount of money it could print.

Afterwards, everything changed.

When discussing how massive of an event it was I often show long term historical charts on the market and the economy. Notice, EVERYTHING changed in 1971… and not for the better.

US GOVERNMENT DEBT

In 1970 the total US debt was $370 billion.  On the chart below it seemed fairly tame up until 1971.

As of today it stands at $19.4 trillion.

Back in 1971, government spending roughly rose at the same rate as median household income.

Quickly, after 1971, that link was broken as government spending has since grown nearly 300% in inflation-adjusted dollars while median household income has only risen 24%.

Since the US dollar has been rapidly falling since 1971 it is best to compare long term price charts to gold, rather than the dollar.

In gold terms, US wages have fallen dramatically since that ignominious year, 1971.

And the US is embroiled in a constant “minimum wage” debate as people in the US have found that they can barely survive at today’s minimum.

Little do many know, but if the US dollar was never taken off the gold standard, it would have been worth more than five times higher than today. That’s right.  Today’s $7 minimum wage would be closer to $35/hour.

But, thanks to this one event, that has been buried by time and determined avoidance (certainly it’s not referred to in government indoctrination camps – schools – nor in the media), your average American has been massively impoverished.

US stock markets are currently hitting all-time nominal highs and the media and government trumpets it as a victory.  But it’s not.

When compared to gold, again, the US market went down dramatically after 1971.

It only reached new highs by 2000 when, after the internet became widely used, productivity increased massively.

But it’s been all downhill since then, and now the US stock market, when priced in gold, is at the same level it was at in the early 1970s.

And, here’s the kicker.  It’s not over yet.

Central banks are now fully in charge of printing as much money as they want and manipulating interest rates to zero or below. Meanwhile, the US government, unrestrained by a gold standard, is going into obscene amounts of debt.

We are soon about to witness the end stages of what began in 1971: the complete and total collapse of the economy and the financial and monetary system as well.

The government isn’t going to tell you this. Nor is the mainstream media.  Even your state-approved financial advisor has no idea what’s about to happen.

And, remember, the severance of the dollar and gold was no coincidence. It was, in fact, part of a larger, long-term movement to bring the dollar to its knees.

That movement is ongoing even now. Starting right around the end of the Jubilee Year at the beginning of October, the yuan is formally integrated into the IMF’s SDR currency basket. Also, the World Bank is beginning to issue international bonds denominated in yuan (RMB).

This is a further death knell for the dollar that people don’t fully understand. Eventually, shocked US citizens will discover they can no longer fund endless military aggression and wasteful social programs by simply printing more currency. This trend will be combined with the continued, agonizing dysfunction of the world’s economy and the Pentagon’s continued, endless agitation abroad.

If you want to read more about this upcoming scenario,  please subscribe to our newsletter HERE. The latest issue, coming out tomorrow, goes into some detail about this scenario and what it means for you and your pocketbook.

And, again, to reemphasize, please note the yuan/SDR conversion is taking place right at the end of the Jubilee Year. This is no coincidence. We have shown conclusively that both celebratory seasons contain repetitive timelines that include economic, military and sociopolitical disasters. Until we pointed it out here at TDV, even the savviest investors were unaware of these repetitive, planned occurrences.

But now we understand them, and others do too – thanks to TDV analysis. We thus have advance warning of significant events and the damage that will occur as a result.

Please continue to read TDV blogs and consider acting on the information we provide, especially in the newsletter. You need to take it upon yourself to protect your assets, and even profit from the coming collapse.

Everything changed on August 15, 1971… and it’s all about to change again. Be prepared.

Anarcho-Capitalist.  Libertarian.  Freedom fighter against mankind’s two biggest enemies, the State and the Central Banks.  Jeff Berwick is the founder of The Dollar Vigilante, CEO of TDV Media & Services and host of the popular video podcast, Anarchast.  Jeff is a prominent speaker at many of the world’s freedom, investment and gold conferences as well as regularly in the media.

© 2016 Copyright Jeff Berwick - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Jeff Berwick Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in