The Gold Standard.

The Gold Standard.

“Going off the Gold standard was primary cause of present day Financial Crisis.”
=Bill Clinton.

The Coinage Act 1792 established the dollar as the basic unit of account of the USA.
It is the monetary unit of the USA in a silver coin or a paper note.
The word dollar is derived from German word sTroller, first coin made in the mines of Joachim Taller, in Bohemia. In Spanish Latin America it was pronounced as sDollar.

With the passage of the Gold Standard Act 1900, the US $ consisted of twenty five and eight tenth grains of gold nine tenth fineness as established.

It set the value of the US $ at 20.67 an ounce.
The rate of exchange was revised from time to time up to 1968 at US$ 35 an ounce.

In the year 1971, President Nixon unilaterally cancelled the direct convertibility
of the US $ to gold.

In the year 1972, USA reset the value of the US $ as $ 38 an ounce of gold, as the
other world currencies was valued in terms of US $.

In absence of Gold linked US $, there was sudden jump in the prices of gold from US $ 35 an ounce to US $ 900 an ounce

As of May 2004, US reserve assets include 1105 billion of gold stock valued at 42.2 $.

Bill Clinton’s observations at the Rockefellers that the world financial systems had tanked since the USA violated the contract law by reneging the end of Brentwood’s agreement, because USA printed so many dollars that it had no reserve gold in its strong rooms to back them up as per the gold standard. Eventually they were not in a position to back up printed commitments when US went off the gold standard. It signed into Law termination of the Glass & Steagall Acts.

The aforesaid two Acts would have saved the financial crisis which is strangling the entire citizenry.

Clinton supports the gold standard now because Central Banks have stolen all of the gold.

Clinton blamed the present financial crisis on the USA leaving the gold standard. He added that the problems of the economy started when the US went off the gold standard in the year 1971. He then hedged a bit and added justifying that the USA was left with no alternative but to do so on account of Economic Management reasons.

Those economic reasons were that the US had printed so many dollars at the then price of US $ 35 an ounce that the US did not have enough gold to back up all the money that was printed.

His statement clearly implies that gold is a check on the out of control Governments
printing of currency notes.

The Federal reserve Act 1913 and the 16th amendment were introduced to destroy wealth and to eventually bankrupt the nation, while consolidating the power in the hands of a few.

Experts have opined that his comments about the gold standard unless he sits to explain in detail the totality of the competing currencies and the federal reserves are vague and baseless.