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The Price of Abandoning The Gold Standard

The Price of Abandoning The Gold Standard

2011-09-06
Source: Forbes


The whole notion of an energy crisis is a grand illusion created by the fall in the paper dollar against gold.

Forty years ago President Richard Nixon severed the final link between the dollar and gold. We have been living with the consequences of that colossal error ever since.

We were promised that breaking the link between the dollar and gold would free the Federal Reserve to smooth out costly recessions, provide high employment and strong economic growth. Internationally, the devaluation of the dollar was supposed to reduce our trade deficit and improve the international competitiveness of American workers and businesses. And, because trade was only one-tenth of the U.S. economy, all of this could be done while maintaining price stability. Each and every one of these promises has been broken.....





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