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

last year

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.

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'sabout 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 basked. 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.

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

Authors get paid when people like you upvote their post.
If you enjoyed what you read here, create your account today and start earning FREE STEEM!
Sort Order:  trending

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.

This sounds a bit too tinfoil-hatty to my taste. As far as I can tell everything points to the USSA being an invasive and power hungry empire doing all it can to rule the entire planet and make its currency be the one and unique world currency. It doesn't quite add up with the idea of a deliberate super-longterm movement to undermine the US dollar and I would rather attribute the upcoming demise of the dollar to the short term / high time preference mindset of the american society than a deliberate plan. Also if it was deliberate, there were much shorter and easier ways to ruin the US dollar.

But maybe I'm missing your point. Can you explain what we are supposed to "remember"?

·

·

Is it "tinfoil" to say that you couldn't raze three buildings with two planes aswell?

·
·

No, that is just common sense.

·
·
·

As is the "fact" that three and only three high-rise steel structures have ever collapsed on account of fires and did so on one and the same day, mindful that the two tallest structures were specifically designed to withstand jumbo-jet impacts.

·
·
·
·

Well yes, among many other equally disturbing facts..

That's why I don't consider the debate of whether 9/11 was false flag to be tinfoil hatting at all, because it is a rational, logical, fact-based debate, not some kind of paranoid delirium about fictional non-sense. But because conspiracy theories in general have been and are still being actively ridiculed and marginalized by associating them as often as possible with cheap science fiction plots in mainstream media and astroturfed away on social media and online forums, all the real, valid, sound, rational "theories" that actually paint a clear picture of the political situation are being lost in the bulk of nonsense, and discredited and banalized so that when they end up being officially acknowledged 50 years later, this doesn't surprise anyone anymore and fails to trigger the upheaval that a sudden credible release would have caused.

Public opinion, history and facts are constantly being manipulated. The USA couter-intellignece is so good at that they managed to fool the germans for years during WWII. And back then they were noobs. So it's of the utmost important that the most publicly visible figured in the anarchist movement stick to strictly rational and fact-based discourse that offers no attack surface to deformation as this is the only way to be immune to the lumped-together-with-tinfoil-hatting-nonsense attack.

That's the reason I'm calling out TDV on his allusion to a secret multi-generation global conspiracy. He is free to think what he wants, but that's not factual, and it doesn't help the anarchist movement if people who have influence keep making highly questionable faith statements like that. It's also useless, because whoever is actually behind the current very broken society structure, that doesn't change anything to the way the problem can be addressed. Either way power will be reclaimed by acting on the ground against the visible structure, by desintermediating financial institution, decentralizing markets, decentralizing social networks, decentralizing media, decentralizing governance, blacking out on communications, and eventually reaching a state of decentralized shadow governance that has enough popular support to actually overthrow the current system. It's entirely irrelevant to know who the real villains are: old world families, satanic cultists, secret societies, illuminati, lizard men ... or just the same old network of corrupt technocrats, bankers, and industry magnates who meet up in Davos every year (Ocam's razor suggests the latter). Just pick what you like, but don't use that to try to give a false air of mystery and depth to what you are saying. It's already an entirely known fact that the governance structure of the first world is rotten to the core, and that's more than enough to justify our cause. So let's focus on what is broken and what we can do about it and let the tinfoil-hatting nonsense to Reddit.

·

In my opinion it started way back when the treachury was founded in 1917.

·

Ending the gold standard was NOT about bringing the US dollar to its knees. It was about global elite being able to control and influence the USA. That is why the federal reserve a PRIVATE CORPORATION was established as the central bank. I just published a very comprehensive article title "The Truth About Money" of which goes into the history of what happened. I don't come to the conclusion that this was about control, but once one knows the history, the conclusion is self evident.
When a private corporation owns the central bank it is treason (the constitution very clear states that ONLY Congress has the power to print and dictate the value of the USD). The USA actually voted down 2 central banks prior to the Federal Reserve and it was only because of the great depression that they were manipulated into agreeing to the Federal Reserve out of desperation.
I could go on and on but that is why I wrote this comprehensive article. I would love feedback after the read from anyone. I have been studying this for a long time.
https://steemit.com/money/@quinneaker/the-truth-about-money-what-you-need-to-know-to-free-your-self-from-perpetual-debt

·

On Sep. 30th, yuan officially becomes part of the SDR basket of currencies. The World Bank has been approved to issue SDR bonds in China so China can invest in them and move away from the dollar. Other institutions and countries may follow suit. The SDR perhaps will become the 'world money' to replace the dollar as the world's reserve currency, as some experts like Jim Rickards suggest. Whether or not this is 'part of a larger, long-term movement to bring the dollar to its knees' is anybody's guess. But Rickards thinks as well that the rise of the SDR and the elimination of the dollar is part of 'piecemeal engineering' employed by the global elites to change the world slowly, one piece at a time, in ways that nobody notices. Btw, the SDR was invented by the IMF in 1969, just a couple of years before Nixon's uncoupling of the dollar from gold Buy gold and silver, Any weakening of the dollar is only good for the precious metals!

·
·

In the time between 1971 and now, the USA have become one of the largest colonial empire of history, mostly thanks to the unlimited funding that free-floating US dollar, and the ability of the Fed to pump freshly minted money into the government chest by buying government bonds have made possible. If allowing the US dollar to become free-floating was a plot to undermine the hegemony of the USA and its currency, it has epically failed.

·
·

When I predicted that would happen, most people thought I was crazy and that the Renminbi wouldn't be approved for the SDR basket. I recognize China's moves and it knows that it can't rise to the top overnight. The SDR to China for the time being is a "useful idiot currency" until they're ready for what they want. Still, I agree with you and Rickards that we may have an SDR phase before we see a return to a commodity-standard. Ultimately, if we all pushed for this now, the SDR phase would be short, or non-existent.

·
·
·

Any commodity money that isn't market-produced — i.e., that amounts to a return to a government gold standard — is doomed. Moreover, the market has now produced mathematical (algorithmic) money from which there is no turning back. On the contrary, it will only get better (e.g., Steem) in that it will become easier and easier to use and as anonymous as users want it to be for any given transaction, not only undermining government production of, and control over, money but undermining government itself.

The state, in other words, has reached its apotheosis and will be in increasingly precipitous decline from here on out.

·
·
·
·

May your predictions turn out to be correct.

·

You are supposed to remember what the New World Order and the Federal Reserve is all about but I doubt you would even care to know considering you think that sounds too "tinfoil-hatty", my guess is you would throw the term "conspiracy theorist" out when explained about the intent of the anti-human satanic fiat currency system. if i sound brash is because of the "tinfoil hatty" remark. cheers.

·
·

you would throw the term "conspiracy theorist" out when explained about the intent of the anti-human satanic fiat currency system

No, the term I would throw is "bullshit". Satanic cults, lizard men, secret societies and other supernatural nonsense stories are noise deliberately created and actively managed by counter-intelligence to discredit and marginalize anarchism and anti-globalization activism and make it look like we are a bunch of loony conspiracy-theorists, so that other people won't dare to join us, consider actual facts we present to them or even discuss about the matter for fear of being mocked and publicly shamed.

I am actively against using any sort of non-factual dramatic elements in the anarchist discourse. Not only is it completely unnecessary, but it also detracts from the real goal, and makes the whole anarchist enterprise look like a silly mess, which is exactly the point. There are plenty enough of disturbing facts out there for anyone with enough curiosity, intelligence and critical thinking to realize in what kind of regime we are actually living in. There is no need of fantasizing about imaginary enemies when we already have the real enemy clear in sight, and all the tools to kick it out of its golden throne.

·
·
·

Best not to put "satanic cults" and "lizard men" in the same category. Additionally, DV said nothing of Lizardmen. Introducing this argument is not respecting the subject.

·
·
·
·

Right, Satanic cults and Lizard men belong to different tinfoil-fantasy lores not to be mixed together. It's like mixing Tolkien and Dan Brown, what was I thinking? And Dryde talked about "anti-human" and not literally Lizard men, my bad for missing out on some obscure esoteric reference. And if by "DV" you mean "TDV", it's not to him I was answering.

Wait, did you forget the /s ;)?

·
·
·

It is no theory that the Fed was conspired in secret,

"Picture a party of the nation's greatest bankers stealing out of New York on a private railroad car under cover of darkness, stealthily riding hundred of miles South, embarking on a mysterious launch, sneaking onto an island deserted by all but a few servants, living there a full week under such rigid secrecy that the names of not one of them was once mentioned, lest the servants learn the identity and disclose to the world this strangest, most secret expedition in the history of American finance. I am not romancing; I am giving to the world, for the first time, the real story of how the famous Aldrich currency report, the foundation of our new currency system, was written..." - Forbes magazine founder Bertie Charles Forbes

It's conspiracy theorist shamers like you who keep the useful people out of the movement. #ShamelessAmerica bro!

When you are attempting to expose the deep state which is granted the privilege of keeping information "confidential" by decreeing that it is in the name of "national security" then sometimes you have to theorize a little. But as more information is leaked to the public the fact that there is a sophisticated long term conspiracy to implement the tactic of problem, reaction solution with the solution being a world government is impossible to deny.
Take a look at the newest Soros leak.
http://www.zerohedge.com/news/2016-08-16/soros-hack-reveals-plot-behind-europes-refugee-crisis-media-funding-and-manipulation

They write that “we also believed that advances at the regional or international levels could create impetus for policy change or implementation of existing norms at the national level. We deliberately avoided the term ‘global governance’ because there is no single system at the global level for managing migration.”

No one said anything about lizards. Don't spread lies.

·
·
·
·

It is no theory that the Fed was conspired in secret

Quote where I said that the Fed was not conspired in secret? The Jekyll Island conference is a fact, and doesn't involve satanic cults and other Dan Brownian fantasies. Technocrats, bankers and captains of industry left, right and above, conspiring to serve their private interests. Always the same. No need to invent some fictional super-villains.

No one said anything about lizards. Don't spread lies.

Let me quote @dryde: "anti-human satanic fiat currency system"
Either he is talking about non-humans or he is talking about nihilist suicidal anti-human humans who miraculously managed to survive over generations in spite of their anti-human affinities to keep pulling the strings of the longest, most inefficient, and most vaporware conspiracy in the history of history. Well or maybe he was talking about some sort of animals. Who knows...

·
·

"anti-human satanic fiat currency system"

Yes, I would throw out the term "conspiracy theorist" for anyone using that phrase. As well as other things.

Good piece @dollarvigilante. As part of the Nixon Shock, it transformed the dollar into a true fiat currency. Books have been written and fortunes lost, yet very few people learn about it. Thanks for bringing your insights and economic history lesson to the community.

Remember these:

·

So much for the "certificate". Isn't the USA's refusal to honor redemption of dollars for precious metals in spite of having committed to do so in writing a sort of credit default?

·
·

Funny things can happen when you can write, enforce, and interpret the laws.

·
·
·

stop acting as though individuals in power Conspire to keep and expand that power silly. anyone who watches and pays attention to human behavior knows that noone does that...

;)

·
·
·
·

LOL. I am not a big fan of big conspiracy theories. Not because people can't come up with devious plans, but rather they in general are terrible at keeping secrets. The big truths normally find their way to the surface, because the same people who are greedy are also terrible at keeping quiet.

·
·
·
·

LOL. I am not a big fan of big conspiracy theories. Not because people can't come up with devious plans, but rather they in general are terrible at keeping secrets. The big truths normally find their way to the surface, because the same people who are greedy are also terrible at keeping quiet.

@mrosenquist: big truths find their ways to the surface. Everything that there is to know is probably already out there, lost in the middle of mountains of garbage thrown around to make it difficult to separate the wheat from the chaff. Nowadays the best way to hide a secret is to leak it lumped together with a kilogram of nonsense.

It all revolves around information theory: information exists only relatively to the relatively low and non-trivial probability of its underlying meaning, and to the fact other possibilities are not also being stated. If I have a dice, and I tell you "next roll will be 6" and I don't say anything else, there may be some information in that statement other than mere speculation. Maybe my dice is crocked. But if I'm also telling at the same time that next roll will be 1, 2, 3, 4, and 5 then there is no more information. I said everything ,therefore I said nothing.

Now the same applies with public counter-intelligence. If information that is dangerous to release was released accidentally, you just need to release plenty of possibly credible, scandalous, and yet totally phony information and pump it in social media; you must also refrain from denying too strongly the information: have fake reasonable joes make care bare statements about how they don't think that makes sense and on the other hand have plenty of fake loonies get all over the place and support that information and connect it with completely outlandish claims so that the public will have a knee jerk reaction of reject. Good job! You have effectively neutralized the first leak: it's now hiding in plain sight posing as yet another piece of conspiracy-theory tinfoil hatting garbage. Even better, now that the information is released, people will somewhat get used to it all the while assuming it's probably false while knowing that "maybe it's true" but rationalizing it away so that when they finally find out it was true years later that won't be enough of a shock to prompt any action. That's called the "boiled frog" tactic and intelligence agencies are doing it routinely.

The bottom line is that there is definitely something going on, and some of that must already be known, but there is also so much tinfoil-hatty nonsense around that, and so many idiots carrying so many of their personal fantasies about the truth , encouraged by plenty of astroturfing and social media manipulation, that it's become almost impossible to really tell what in that flood of information is true. The only compass one has is logic and rationality. Logic doesn't lie. If something is found to follow from something else under the laws of logic (except for corner Godelian cases that are mostly irrelevant here), that thing is to be considered sound.

It's of utmost important for people to realize what is really happening with information, and that only logic is the light that can guide us to the truth. That's why projects like Tau are so important.

·

Yes well it is actually TREASON for a PRIVATE CORPORATION of which the FEDERAL RESERVE IS, to print and or dictate the value of USD. The constitution VERY clear states that ONLY Congress has the power to print and dictate the value USD.
Obviously this country was hijacked a LONG time ago. I just published a comprehensive article on the history and "Truth About Money" tonight!
I fell it is of great value to this community and welcome feedback!
Thanks
https://steemit.com/money/@quinneaker/the-truth-about-money-what-you-need-to-know-to-free-your-self-from-perpetual-debt

·
·

Actually, it is not illegal for a private corporation, entity, or person to print their own unique form of money. Local banks do it for 'community dollars' to keep money in small towns for example. As for dictating the value of the US Dollar, nobody specifies the exact value. It is a fiat type of currency. So the collective dictates the value based upon what two parties (buyers and sellers of good/services) are willing to exchange for it. This is the basis for Bitcoin for example, and almost all other currencies on the planet.

·
·
·

What you say is true but what I said is also true~
It is TREASON for Congress/Government to GIVE UP and put the printing and value of money to a private corporation. Or maybe calling it treason is not accurate. It is just unconstitutional and supposed to NOT be allowed in this country.
These rules were put into play prickly to KEEP from happening what is currently happening.

seems like the smartest way for the USA to enslave the rest of the world by using it's perception of power to borrow money it will never pay back, and call it debt, but that's all it is... just a word

·

The U.S.A will enslave no one, if the Chinese call in their debts then dump the bonds that it currently owns the U.S.A is done for. ;)

·
·

The Chinese are culturally programmed to be loyal, and that's that.. they've been duped, and there is no way out of or around it

·
·
·

it is merely the masses that have been duped, the Chinese elite are not stupid and it would be unwise to think they will blindly follow when they are offered trinkets instead of gold

·
·
·
·

You're right about that. The Chinese are anything but stupid. Having yuan be part of the SDR is not a small feat. They're not perfect, as their economy is in trouble as well. But they've been making some savvy moves, such as becoming the world's largest producer and importer of gold (to give the yuan greater juice). No gold leaves that country. Take a look at this:
http://goldsilverintel.com/infographic-chinese-gold-market/

·
·

And then China will have no-one to sell their goods to. Sounds like a plan.

·
·
·

I hope aliens are interested in bonds.

·
·

i.e. if China commits financial suicide it will take the U.S.A along with it.

Not as simple as it sounds.

·

Yes the REASON why the current monitory system is in play is to control this country. The way the system is currently set up there is NO way to ever get out of debt. Not only that but the Federal Reserve of which is a PRIVATE CORPORATION is printing money for .01 cents on the dollar and then selling it to the USA. So this private corporation is not only making BIG bucks but also controlling the entire economy.
I just published a very comprehensive article about the history of money and how we got to where we are today. You can read it here. I would love feedback as I feel this is a very valuable post.
Thanks
https://steemit.com/money/@quinneaker/the-truth-about-money-what-you-need-to-know-to-free-your-self-from-perpetual-debt

oh yes, from then on they had the ability to print limitless amounts of paper bills which looked the same for most apart from the change of wording !! Nobody reads what,s on a bill right ?? they just want a coffee, if it works its all good !! Then they lend out this crap to every Tom, Dick and Lucy who thinks they need it, but don,t have it, all done with loans with their interest added of course! So now most are in perpetual debt , good little slaves who believe in the war on terror and just want to be safe. The perfect plan when you want to take it all !! Jekyll Island and CO , Three big bankers died on the Titanic back then to let this stuff happen later under Nixon ! All a plan, the end of the white Gentile and the expansion of the greater Israel. Protocols of the elders of Zion a must read. Great post glad to see you get this bit of devilry out to a place they cant bring it down !! ; - )

I had written something similar a few hours before. I have referenced your story in the 2nd part of my article, which is about why I don't care about this years election. I would be honored if you would check it out: https://steemit.com/politics/@knircky/steem-for-the-win-i-don-t-care-who-wins-the-white-house-pt2

The amount of people I know who still think that currency is backed by either gold or silver is staggering, they look at me like I am crazy when I tell them how we are using FIAT based currency not backed by anything other than a promise.

·

Exactly.

·

Exactly!
I just published a very comprehensive article on this exact topic going into the history of money/currency and what the major differences are and how they came to be!
Would love any feedback!
https://steemit.com/money/@quinneaker/the-truth-about-money-what-you-need-to-know-to-free-your-self-from-perpetual-debt

I was thinking about this today, pretty much the moment we gave banks infinite financial power.

The US Gov't only officially followed the gold standard system from 1900 until Nixon's speech. It's amazing how things can change in such a short time frame.

See he contributes after all. JK great post.

To be honest I knew nothing of it. I guess it wasn't cast as a monumental occurrence in American History outside the U.S. But very interesting, to say the least. Great post and thanks for your support on the billboard campaign:)

The analysis looks sound and my finance background tells me it gets the right picture of the situation with the USD and the US economy. And the fact that the dollar printing machine has reached enormous scale is yet another sign of the explosure that can happen soon.

What surprises me though is that there are similar analysis from different economists all predicting the crash of the US economy more less since 2008... And it's still there. With all the issues up there - it's still up and running.

So my question is... What's the timeframe that your analysis is showing? When do you expect the results of the dropping the gold standard come into life?

·

Working out when it's going to go is difficult. Like watching a spinning top wobble. You know it's going to go soon, but you can't be sure exactly how much longer it will last.

As the currency isn't backed by anything, it is backed by (literally) hopes and dreams. The currency will continue to hold sway in the markets so long as people have the perception that it does.

Let it burn!

We get the wool pulled over us all the time... Its no surprise most people don't even mention this anymore, because they don't know anything about it. Its long forgotten. .. Nixon was a crook!!! Gold is in fort knox.. sure...

Hehe... I thought you were going to say the creation of the Federal Reserve itself... but that predated Nixon by many decades. 1913 - 1914 I believe was when that insidious thing was created.

·

This is silly. What can you even know about Putin? I live in Russia, and all I see, feel the hard way, all that shit on me. Orwell's novel "1984" in Russia is used as a guide. However, Putin's accusation in all this is a paranoid.

·
·

you might enjoy the post though.
its silly because this is making fun of all the goofy things western media is saying.
Nobody really believes any of it except the mentally ill, very old, and the pitifully stupid....
on second thought, that pretty much covers the entire U.S. ...
:^)
I fully expect D.C. to start WW3 and claim it was Iran, Russia, and China. I fully expect this.
So I laugh now while I can. One thing I won't do is blame you or any other Russian.
On this you have my promise.

·
·

and so you know, I don't expect to be alive afterward very long if at all.
I have faith Russia will retaliate, unfortunately, but I understand why.
I would too if I were Russian.
I blame D.C. in advance of my demise by nuke detonation.

·

Putin is no saint, but to think is is the primary cause of all the world's ills is silly. I had a look at your post, and saw many claims, but nothing to back them up.

However, if you can show evidence to back the claims you made in the post, it might be interesting to see.

My suspicion is that much of the trouble in (and flowing out of) the middle east has a lot to do with competing religious and tribal interests, and competing pipelines.

http://www.zerohedge.com/news/2015-09-10/competing-gas-pipelines-are-fueling-syrian-war-migrant-crisis

(To be fair though, I don't understand the competing tribal interests well enough to make a clear argument to back the claim.)

In this, Putin is definitely no saint, but he is also not the only sinner.

·
·

Bah... I just noticed that it was tagged as satire. Now I'm the one who should feel silly. Poe's law reigns supreme.

·
·
·

he he ... GOTCHA!!! DId I get some upvote love ?? sure appreciate it Sir.
Gotta laugh at ourselves.
And frankly, Russia has done nothing wrong.
The military "maidan" coup we illegally supported in Kiev was CIA instigated, as most of them are... even the Turkish attempt is suspected by some in the TUrk govt to be CIA. Because Erdogan won't obey us. Now he's turned his back. Smart man.
I believe NOTHING about Russia in western media. NOT ONE BIT.

·
·
·
·

Hahaha, yep, you got me. I was a bit late in upvoting, but you still got some.

You are truly vigilant on the dollar! lol
This trend is explosive. The growth of debt is higher than the growth of the economy.
Do you believe this trend will lead to an explosion of the global dollar system? If so, when do you think the crisis would probably start?

Thanks for you post!
This is important information that none of the media do not tell.

As the saying goes @dollarvigilante : Nothing is quite so permanent as a temporary government measure.
I believe this is compounded again by the insane increase (Globally) in privately held debt, that has been encouraged to keep the banks originating assets. The more debt people hold, the more of an impact a change in the value of the currency will have. Coincidentally private debt in the US, Canada and Australia has more than tripled, which makes them overly dependent on a monetary system that is built on a house of cards.

The dollar will lose its "worlds reserve currency status".... just a matter of when

·

This is guaranteed and already in motion!

·

It will but when SDR - the global elites money - takes it over it will be even worse. For now, even while dollar is trashy, there is still at least some (even limited) competition. Let's hope that BTC or some other crypto will take it over.

·
·

Eventually there will be a one world currency, most likely an electronic currency (crypto)... it's a wonder it is hasn't already happened yet

good job Jeff!

@dollarvigilante You got a source for this, "World Bank is beginning to issue international bonds denominated in yuan (RMB)?"

That's a huge and disturbing development. I do like that it will reduce our governments ability to keep funding war, but it will come at a huge cost to our economy.

·

I am no financial expert but I do think it will hurt the US/canada economy somewhat but until the US loses the petro dollar it shouldn't hurt that much. But it might be the start of the fall of the petro dollar and that would hurt the economy like nothing before! Imagine if you were used to getting goods like gold,food,medicine,etc.. for nothing! (printed paper) And then that was taken away = disaster

I made a short post on the petro dollar.... feel free to let me know what you think
https://steemit.com/politics/@lecrazycanuckeh/the-biggest-reason-for-invasion-in-iraq-and-libya-that-no-one-wants-to-admit

·
·

I don't agree re: losing petro dollar status. If the USA loses our ability to continue to run up our government debt that would be damaging at an enormous level.

·

Two links to take a look at:

http://www.worldbank.org/en/news/press-release/2016/08/12/world-bank-approved-as-the-first-sdr-bond-issuer-in-china

http://www.ft.com/cms/s/0/a9175aee-603f-11e6-ae3f-77baadeb1c93.html#axzz4HasqGaae

Also worth bearing in mind if you've been following the Shemitah and Jubilee trends:

"The Chinese renminbi will join the SDR basket of reserve currencies on October 1, 2016."

The very next day is the end of the jubilee year (Elul 29 in the Hebrew calendar). Talk about timing...

·
·

Wow.

That's some scary stats and graphs there.

Nixon's brilliant move was the creation of the petrodollar, which buoyed the value of the FRN and cemented it as the world's reserve currency. Now that is unraveling with the inclusion of the Yuan as a reserve currency and the creation of the AIIB, which can bypass the petrodollar, SWIFT and the dominance of the FRN in the IMF. We may be able to bully Iran, roll over Iraq and destabilize Libya, but we are fucked if we try that with Russia, India, and China.

Good article Jeff.

Fantastic article! Thanks for sharing. I gotta ask, is the next mess going to unfold this year? Or in the next 18months?

I feel like our government is like a dumb college kid with a credit card. Charge everything to it now and hope that when you owe money your parents will bail you out or your debt will be forgiven.

But instead we open another credit card and push further into debt. I don't follow this as closely as you do, but a 6 year old could manage money in their piggy bank better than the government tends to.

·

Its actually FAR more DIABOLICAL and deliberate than that. This was done to control this country through the monitory system as bankers/moneychangers have done for thousands of years~
I just published a comprehensive article on this topic tonight titled "The Truth About Money" of which goes into the history of money/currency and what the difference is and why our system now PERPETUATES ENDLESS DEBT!
You can read it here and I welcome all feedback~
Thanks
https://steemit.com/money/@quinneaker/the-truth-about-money-what-you-need-to-know-to-free-your-self-from-perpetual-debt

·
·

Thanks for the reply. I always check out links when people tell a little bit about why they would be beneficial to look at. I clearly have no deep knowledge of our banking system, but have wondered what would happen if one day people decided dollars no longer had any value to them any more than toilet paper.

@dollarvigilante we have avoided disaster until now, but it won't last forever. History repeats itself, how many countries have tried to buy their way out of debt or fund wars by printing more and more money until it wan't worth the paper it was printed on? This is why I have been investing my money in physical gold and crypto. Currencies worldwide are being devalued, even the Chinese billionaires have been pulling their money out of banks and investing in hard and digital assets.

·

I agree this is a valuable and important post!
I follow this guy as he is a WINNER. I just posted my newest article on the history of money/currency and how we got to be in the system we are currently in of which perpetuates endless debt. You can read it here
https://steemit.com/money/@quinneaker/the-truth-about-money-what-you-need-to-know-to-free-your-self-from-perpetual-debt

·

Yes!
This is a VERY important topic and I just published a comprehensive article on the history of money and how we got to the situation we are currently in which perpetuates debt~
You can read it here. I welcome all feedback~
https://steemit.com/money/@quinneaker/the-truth-about-money-what-you-need-to-know-to-free-your-self-from-perpetual-debt

No wonder you calling yourself "@dollarvigilante" within 1 hour you earning rose to 1.3k+ nice one .
Can you write article for me :p .
I wanna see the outcome do we making the same like this .

Weaker currency is good for export

it would have been worth more than five times higher than today.
Today's $7 minimum wage would be closer to $35/hour.

Not all country want their currency to be really strong because its will affecting their economic especially export. Even some country try to weaken their currency in order to push economic and increase export. With weaken currency a company will pay lower wage to their labour, and its will decrease the price of product that they produce. Cheaper and high quality product offcourse more competitive then expensive product.

This ultra low interest rate ussually applied to safe heaven (Frank, Yen and USD). They using this policy to maintain exports level.

Many investors believe that with the franc so strong Swiss companies will struggle to maintain export levels.
source : http://www.bbc.com/news/business-30829917

Currency War

When US delinked their currency from gold and the most recent one when they launch their Quantitave easing program, its make dolar value weaken and another currency value arise, especially safe heaven currency like franc and yen. They will fight back to weaken their currency and support export, BOJ ussually will make an intervention, SBD even pegged their currency to euro.

Economists see greater chance of BoJ easing
http://www.ft.com/fastft/2016/06/27/economists-see-greater-chance-of-boj-easing/

Following the SNB move the euro went from buying 1.20 francs
http://www.bbc.com/news/business-30829917

The fall in the pound helped boost the business of manufacturing exporting firms after the UK voted for Brexit,
http://www.express.co.uk/finance/city/692205/Brexit-boosts-factory-export-growth-to-two-year-high-but-output-drops

I do not know who will win the currency war, but weaker currency value is not always bad sign.

Goverment Debt

Screenshot_1fa2ae.md.png
source: http://www.tradingeconomics.com/

Japan has biggest debt, but they also have a lot of asset accross the world, their automotive, electronic product and company is all over the globe. Its does not matter if we have some debt but we can make profit more than interest on this debt. Japan still known as one of the biggest and strongest country although they have a really big debt so do USA.

But at the end we are only slave :=)

Hi everyone, great explanatory post also. If you read Faust Part II, Goethe himself satirizes the introduction of paper money and makes a fictional story where the king introduces it after doing a deal with Mephisto to get debt. This is written way back in 1832 by Goethe. Remember Goethe is thought to be one of the smartest philosophers and writers in the last few hundred years. Most people can't even read Faust Part II, but this point resonates into the future.

really money is infinite while it exists, its form may change or more accurately convert... but as a means of exchange it will always exist until the day machines can create free food, water, clothing, shelter, tech etc...

·

Nature already invented free food, water, clothing, and shelter. She even put it all in one plant and also made it the most powerful medicine on earth--it's called cannabis. But for those that like a challenge, she also spread the resources all across the land. People just forgot how to provide for themselves.

·
·

Its just a plant. It takes slavery to convert into useful things. Living naturally is free yes, but it can be seen as a kind of physical slavery. Because I have to slave away for hours a day to grow food, build and maintain shelter etc etc. The reason machines exist it to eliminate all forms of slavery so I can have free time all the time.

·
·
·

#1 It's not slavery if you're doing something you enjoy. #2 Cannabis is one of the easiest plants to grow, and you don't have to do anything to it to make it food and medicine. #3 If you depend upon it, you will always be a slave to the machine.

·
·
·
·

Go and grow enough hemp to eat etc and come and tell me if it was fun. It would be pure slavery. Personally, I appreciate how machines make my life easier and see how they could one day make life totally free of slavery. I don’t see the dependence as a negative thing, as it is a worse kind of slavery to revert back and not use them.
Also hemp is not easy to grow. No food is, it takes care and lots of attention to get a good yield. Something I'd rather let machines do so I can forget about doing it myself. Machines are a way for humans to move past limitations.

Thanks for posting this information and to think you are Canadian ...Your awesome :)

Jeff, normally, I find what you say very agreeable. And perhaps that was the most -immediately- destructive event in monetary history. But come on, man. You know that the most destructive event in monetary history took place on december 23rd, 1913. it just took longer for people to start feeling it.

Those stats are insane and scary . The big mess will enfold sooner than later .

Thanks for you post!

YES!
What an important post!
I am so grateful you are sharing this (what is basic knowledge to me) yet lacking in most modern folk.
Knowledge is power and without this knowledge one is at a disadvantage!
Thank you again for your contributions. I follow you appreciate you and respect you!
Whats even cooler is that synchronistically I just posted my article I have been writing for a while titled "The Truth About Money" where I discuss the difference between "money" and "currency" and the history of central bank take overs and how it is designed to control and manipulate entire economies and civilizations!
I would be honored if you would read it and give me some feedback.
Keep up the great work!
https://steemit.com/money/@quinneaker/the-truth-about-money-what-you-need-to-know-to-free-your-self-from-perpetual-debt

good analysis :D

Your article @dollarvigilante describes the end of an economic cycle (along with plenty of tinfoil to make it interesting).

There are many destructive economic moments that took place on this planet and plenty more to come whether they are based on FIAT or Crypto.

Destruction is good. Randomness is Good. The entire universe is based on chaos. Stability = Death. Since you are an anarchist, randomness is the first thing you should embrace.

No need to be a sensationalist for the sake of being a sensationalist. Here is something to chew upon.

WOW great post... with great research! It's even worst when you account they allowed the central bank to charge interest as well making it a total debt scam.. I am not sure but wasn't that Nixon as well?

History repeats itself. Anyone with any knowledge of the fall of the Roman Empire can see the eerily (yet predictably) similar parallels being played out today, yet most refuse to learn from history:

  1. Rampant currency debasement (now contemporary governments are planning to debase even the base metals out of currency by ridding metal and paper currency from circulation altogether);
  2. Bloated welfare state (including bread and circus now re-branded as 'basic universal income');
  3. Infinitely complex tax and legal system which stifles innovation and creates fear of reprisal for creating new items or ideas of significant use value (increasingly more creators of wealth either physically leave the empire or export more wealth out of circulation. The option for those with less means to create wealth is to choose to live on welfare);
  4. Mass importation of hostile foreign tribes whose cultural sensibilities are elevated above the host culture's;
  5. Growth of oligarchical political dynasties (Bush, Clinton, Trump);
  6. Elevation of rulers to god-like status (Obama);
  7. Elevation of entertainers (actors, musicians, sports stars) to high society status, both in terms of celebrity status as well as pay (in the early stages of empire these careers are of low status and low pay);
  8. Increasingly drawn-out military losses (when did the USA last 'win' a war?);
  9. Establishment of stop lines (e.g., wall building, missile batteries) marking the empire's edge as defence becomes vastly overstretched and threats become more difficult to contain or predict in which direction they will come.

...to name but a few...

I have a theory - the US Federal Reserve Bank is no longer the gold in their vaults. One precedent was when the United States not returned Germany gold. Germany staying for safekeeping. I think that already in 1971 there was no gold in the vaults.

You raise some interesting points, but the best example that I go to for the history of banking cartels and whether or not gold-backed dollars are reasonable is the documentary: The Secret of Oz

I am posting below a chart showing the price of oil in USD dollar terms and the price of oil in gold terms since the mid 1960s. To me this is the most fundamental explanation of the crisis that is engulfing the US middle class since then. And it is all related to the Nixon event described above by @dollarvigilante. If the US dollar had remained pegget to gold, we would probably pay 1/50th of what we pay now for gas with strong spillovers on the exonomy and family budgets.

England scoff at the puny dollar.
England: proudly fiat since 1694.

An interesting comparison is the price of gold since `71 to the DXY and it tells the full story. I fully believe that Nixon thought that going off the gold standard was temporary because the government tried dumping gold on the market to suppress the price, but it never worked and we haven't seen $35 gold since. Even Paul Volcker has implied in conversations that many of the leaders at the time thought we'd eventually go back to a gold standard, but as we got further away from it and became reckless in spending, we couldn't return.

Hey guys follow me. . Im a newbie here. Nurse angel :)

Ultimately what it boils down to is that we are all living in a complete illusion. Recession, I mean what is it really? It's a marketing word designed to make people save rather than spend.
I remember flying from Cyprus to France 3 years ago when we were in 'recession' , I looked out of the window and I saw beautiful hills and villages majestic mountains and serene lakes and not a single recession in sight.
If we learn to discard the fear and live in just the moment, never looking into the future, especially the one which is created for us by the negative media, then we learn to live, love and experience the present.


Great article, however wouldn't you agree the Federal Reserve Act was actually the most destructive event in modern financial history, especially considering this system is what allowed the removal of the gold standard in the first place? Furthermore, the Group of Thirty also known as the central core of World Bankers is advocating for a return to a gold standard because the central banks are the largest holders of gold, and that would centralize power under them even more so?

See my video: "The Group of Thirty":

How people don't see that the FIAT-currency regime is a criminal scam, is totally beyond my comprehension.

So how does one secure true wealth under these economically feeble circumstances for someone with very meager means? How can the youngest generation counteract this trend of government undermining our future?

And I am too busy and broke to care...I guess that is part of their plan!

Always great stuff Jeff! If anyone is interested, check out my Steemit post ,
How being recruited to work for the NSA led to me becoming an Anarchist & former American

Afaik, this and the advent of Reagonomics, during Reagan administration were part of the decisions in the cold war. The cold war was a contest between capitalist & socialist planned economic models championed by USA & USSR respectively, and 70's were a moment when guys behind the capitalist economics were really pessimistic about their chances, thus those drastic measures.

Well, short term they won the race, but we are seing the consequences of their choices now. Planned economics are okay, if you have a solid mathematical model behind it, as well as enough computing power to do the planning & adjustment. Most corporations are actually using something like that these days, but since USSR lost it is not a model that is prominent for national adoption.
Still, It works nicely on the small scale. Perhaps both free market and planned economic models could blend using the model that mimics different ecosystems with symbiotic relationships and whatnot.

I was always taught in school that the US abandoned the gold standard way earlier?

It breaks my heart to see this video. The ability to wage wars without first asking the people for the funding, not price stability from those nasty "speculators" is the real reason for 1971. We litterally handed over our lives to the central banks. We were probably promised that, with such demand for the us dollar, we could print, print and print without consequence.

Now look where we are, military bases all over the world, a higher defence budget than the next 25 countries combined, 23 of which are allies.

It's disgusting.

interesting viewpoint. I don't agree with you completely, but I feel your voice gives balance to pacified spectators or those who don't feel our US debt is problematic.

For one: "shadowy and intangible money speculators" is not an empty threat.

  ·  last year

Great article. This is why investing physical gold and silver is so important. And what a perfect time when prices are unbelievably low, but not for long.

Outstanding piece @dollarvigilante. A while ago I was told of a new currency for north america called the Romero (Think that's the right spelling) which is supposed to be a joint currency between the USA, Mexico and Canada. A currency which is allegedly already being traded and yet seems to be unknown to most. Can you shed any light on it and its relation to the events stated as being in process?

Also wondering how the introduction of various cryptocurrencies impacts on the dollar. Am a firm believer that eventually they will likely kill it, along with other currencies off, just be interested to see any analysis you have done on it!

In regards to going off the gold standard, I'm an old fart compared to almost everyone in here and I couldn't agree more that is was a huge mistake. This has been a conversation I've had many times with friends and colleagues over the years and it's never been a debate, we've all agreed on this one.

Thanks Jeff, you always have a great insight when it comes to the big world picture. Your view is much appreciated on Steemit and highly respected among the community.

·

This summer run up is likely a bull trap for the fall cliffhanger. Time will tell, keep our ears to the ground for anything new and be ready to move with an exit plan if the market breaks downward

This post has been linked to from another place on Steem.

Learn more about linkback bot v0.3

Upvote if you want the bot to continue posting linkbacks for your posts. Flag if otherwise. Built by @ontofractal