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💥 1971 broke the dollar. In Money Disrupted, @ronpaul explains how Richard Nixon took the U.S. off the gold standard — and why inflation became inevitable. This wasn’t an accident. It was a choice. 🎥 Money Disrupted Behind every dollar is a lie.

33,461 次观看 • 7 个月前 •via X (Twitter)

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In 1971, the U.S. literally ran out of money. Back then, the dollar was backed by gold, which meant every paper dollar represented real gold sitting in U.S. reserves. The problem was the country was spending way more than it earned, printing dollars that didn’t have enough gold to back them. As other countries realized this, they started trading their dollars in for gold. The gold reserves began to drain fast. That Sunday night, President Nixon went on TV and told the world the U.S. was “suspend temporarily convertibility” of dollars into gold. What that really meant was the U.S. couldn’t pay what it owed in real money anymore. At that time, Ray Dalio was a young clerk on the floor of the New York Stock Exchange. He thought markets would collapse the next day. Instead, stocks soared. The U.S. had just made money worth less, and when that happens, asset prices usually rise. He later found out the same thing had happened in 1933 when FDR also cut the gold link. Both times, the U.S. printed more paper money to keep spending, and each dollar ended up buying less. That moment in 1971 changed the entire global system. From then on, money wasn’t something you could exchange for gold, it became a promise backed only by trust. And that’s where the connection to today comes in. Trust in that promise is fading again. Inflation is running above target, the dollar is sliding, and people are moving into things that don’t rely on faith in any government such as gold and bitcoin. Foreign investors aren’t pulling away from America, but they are protecting themselves. They’re still buying U.S. assets, just not without hedging the risk. They don’t want to be caught holding paper that keeps losing value. Dalio’s story shows how this cycle keeps repeating. The system runs on confidence until it doesn’t. And every time it slips, people turn back to hard assets, not because they want to, but because they have to.

StockMarket.News

95,018 次观看 • 11 个月前

The 1970s were arguably the most spectacular decade in modern gold history. The key point is that gold went from being essentially a fixed-price monetary asset to a freely traded asset, and then exploded. What triggered it? 1. Nixon ended the dollar-gold link — 1971 Under Bretton Woods, gold was effectively fixed at $35/oz. In August 1971, President Nixon ended the dollar’s convertibility into gold. Gold was subsequently allowed to trade much more freely. 2. Inflation exploded The 1970s brought persistent US inflation, which made investors increasingly worried about the purchasing power of the dollar. 3. Oil shocks The 1973–74 oil crisis and the second oil shock at the end of the decade created a classic stagflation environment — weak growth + high inflation. 4. Geopolitical fear The Iranian Revolution, Middle East tensions and eventually the Soviet invasion of Afghanistan pushed investors toward gold as a safe haven. But there was an important correction Gold didn’t simply go up in a straight line. After rising 353% from August 1971 to November 1974, gold fell 43%, from $184 to $104, by August 1976. Then the second leg was extraordinary: August 1976 → September 1980: +541% Gold eventually reached roughly $850/oz in January 1980. The fascinating comparison with today This is why the 1970s are relevant to the current gold rally: 1970s: End of gold standard → inflation → oil shock → geopolitical fear → gold explosion Today: Fiscal concerns → central-bank buying → geopolitical tensions → concerns about dollar dominance → gold rally But there is a major difference: today’s gold market is not simply an inflation trade. Central-bank demand and concerns about reserve diversification/dollar dependence are much more important than they were in the 1970s. #Gold #nifty #dollar #fed #inflation

CNBC-AWAAZ

20,089 次观看 • 1 个月前

On a Sunday evening, August 15, 1971, Richard Nixon interrupted the broadcast of Bonanza to inform Americans that the dollar they held was now backed by nothing but his word. He called it "temporary." Fifty-plus years later, you are still waiting for the temporary part to end. Understand what actually happened. Under Bretton Woods, foreign governments could exchange their dollars for gold at $35 an ounce. The dollar was a receipt. Gold was the money. Washington printed receipts far faster than it dug gold out of the ground, financing Vietnam and Lyndon Johnson's Great Society with the same press. De Gaulle noticed. So did others. France sent a warship to collect its gold, and the run was on. Nixon had two honest choices: stop spending, or admit the dollar was overissued. He chose a third option. He defaulted, then blamed "international speculators" for the mess his own Treasury created. Classic. Notice the language he used. He promised the dollar's action would "stabilize" prices. Consumer prices roughly quadrupled over the next forty years. A 1971 dollar buys you about fourteen cents of goods today. That is confiscation in slow motion, and it hit wage earners and savers hardest, the people holding cash rather than assets that float upward on the new tide of credit. Here is the mechanism sound money advocates warned about for a century: Sever money from a physical anchor and you hand politicians an unlimited overdraft. Every deficit, every bailout, every war since 1971 rode on that Sunday broadcast. Ludwig von Mises died in 1973, having spent decades explaining exactly this. Nixon called it "protecting" the dollar. He meant emptying it. You have been paying the invoice ever since.

Handre

63,728 次观看 • 2 个月前