A Moment in History: Nixon explains to the nation that he is detaching the dollar from gold to “stabilize” the dollar.

They didn’t call him Tricky Dick for nothing.

The truth is we spent a fortune fighting in Vietnam and fighting “The War on Poverty” at home and we were tapped. When the the international community (especially the French and British) wanted to be paid back in gold, as was their right under Bretton Woods, for the money we had borrowed from them, Nixon told them to take a hike.

The main problem was that gold by decree was supposed to be $35.00 an ounce. The real world however was paying $44. You can see the problem. The US was bleeding gold and Nixon thought he had to do something. He chose the wrong thing however. He should never have completely abandoned gold.

His decision 40 years ago has had grave ramifications for us today. By disconnecting the dollar completely from gold Nixon unleashed the state.

97 comments
Larry A. Roth
Larry A. Roth

Yet it wasn't legal to own physical gold (except as jewelry or as a part of some collection) until 1988. The ban on possession of physical gold started in 1933 (thank you FDR) as an effort to control the economic depression... which of course, didn't work, but gave the govt vast new authority...

Mark Carpenter
Mark Carpenter

One cog in the destruction of the US economy. started with the establishment of the Fed, then FDR's policies, then the military industrial complex after WWII, then walking away from the gold standard. And the beat went on. Overspending, career politicians, NAFTA, borrowing from other nations, corporate manipulation of congress, moving core manufacturing overseas, etc etc. Just a peek at history and the step by ugly step disintegration of the republic becomes evident. Why can so few see this?

Against Crony Capitalism
Against Crony Capitalism

"Petrodollar Warfare" - good book. Don't agree with a good bit of it but very interesting. Will make one look at the Iraq War in a different way to be sure.

Dean El Loca
Dean El Loca

margeret.. your a liberal troll.. i bet you would cream your panties if us currency fell apart.. thats exactly what they want

Joe Yeiser
Joe Yeiser

same with obama care, it's doing exactly what the president wants. it's not a failure. he'll make things really bad and awful and people will demand a fix and the fix will consolidate more power in washington permanently.

Loren Montgomery
Loren Montgomery

Roosevelt took the country off the gold standard and created the fed reserve. I remember before I went to high school the Silver Certificates being taken out of service and replaced by the Federal Reserve note which is worthless

Rick Benet
Rick Benet

It was real estate speculation and the fed loaning money for property the average worker could not get for the average house from yhe average bank loan.

Rick Benet
Rick Benet

We never had enough oil to back anything

David A Miller
David A Miller

Obama and Nixon brothers in kiting and deceit. They are both "crooks"

Craig Chapman
Craig Chapman

At the premier of Ramapo College's Professor Murray Sabrin's documentary 100 Years of the Fed he stated this was the event that the US effectively declared bankruptcy.

Stephen Beying
Stephen Beying

Start of the downfall of our working for a decent living, then Reagan, and the bush's followed up where he left off. The damn democrats aren't any better. Get rid of both parties.

ChristopherFaille
ChristopherFaille

Did a bang-up job on the professed goal of "stabilizing" the dollar, didn't he?

Sohan Calebephratah
Sohan Calebephratah

OFF THE GOLD STANDARD, ON TO THE OIL STANDARD AND THE CURRENCY WARS CONTINUED. Less directly, Quantitative Easing (US policy 2009 - 2013), tends to lead to a fall in the value of the currency even if the central bank does not directly buy any foreign assets and creates inflation. The Federal Reserve made an additional $600 billion available for the purchase of financial assets. This prompted widespread criticism from China, Germany, and Brazil that the United States was using QE2 to try to devalue its currency without consideration to the effect the resulting capital inflows might have on emerging economies. Barack Hussein Obama has defended QE Infinity, saying it would help the U.S. economy to grow (not), which would be "good for the world as a whole".

John W Roche
John W Roche

Stupid or lying, always the question with politicians.

Dean Hughes
Dean Hughes

This was the beginning of the end in America.

Sue Smith
Sue Smith

He was also the lawyer behind Sen. Joe McCarthy when the blacklisted people for communist leanings.

Nate Marra
Nate Marra

I don't get the obsession with pegging the dollar (or any other currency) to gold.... The perceived value of gold is built on faith that gold will continue to have value in the future, just like for any other commodity! Furthermore, the value of gold fluctuates based upon the laws of supply and demand as well, just like a fiat currency does.... If you don't believe me, look at the historical levels of inflation in Spain in the 1600's because of the amount of gold they had plundered through their colonial empire: it's the exact same principle!!!!!!!

George Parigian Jr.
George Parigian Jr.

Even though a Republican Nixon served the interests of the global financial elite, not the interests of the American people.

Mary Audas
Mary Audas

Some people are educated beyond their intelligence with very little moral character. This man is probably one of them.

David Callison
David Callison

Amen! SO TRUE! AMEN! Well explained so even ignorant political party worshipers can comprehend! We are being served competition to serve the super elite installing puppets for global control.

Sally Gardner
Sally Gardner

What?! Who does this? I mean, I am just sick of the games these cronies are playing with the american public and our way of life as we knew it. We are all puppets in their hands is the message. I don't know if they are serious? What the hell.

Joseph Pride
Joseph Pride

Proponents of fiat currency want to eliminate all common-sense checks on their political power. Therefore, they're smart to get rid of gold. Just like Korean dictators, the political elite need not worry about the size of the economy -- only whether they remain entitled to control it. 100% of a shrinking pie is still absolute power.

Joseph Pride
Joseph Pride

Exactly. That's what he wanted. So he was not stupid.

Jimmy Eric Seeley
Jimmy Eric Seeley

what.......are.......you......talking.......about. fiat currency is the worst thing for the people! maybe not for his evil political objectives. but pull your head otu of your ass good sir. its because of this son of bitchs decesion, that i cannot save in the bank, simply due to loss of purchasing power. besides the petrodollar thing is built only on the trust, that the arabs would be stupid long enough to take our dollars. and that everyone would keep our money as reserve currency of world. haha, not the case anymore.

Roger Kasik
Roger Kasik

the "main" GOAL of that election ...

Robert Jsomebody
Robert Jsomebody

Another example of the executive branch usurping powers not delegated to it by the constitution.

Anthony Morales
Anthony Morales

It's not over yet Kevin I'm ready to fight are you ?

Kevin Donoghue
Kevin Donoghue

beginning of the end....... Now the crooked bankers run the world.

David Ursiny
David Ursiny

wall street holds a couple hundred trillion in debt backed up on? inflated collateral. , promising on future oil sales at inflated values. on nothing gold is a commodity its value can be and is inflated by those who control the market and paper market of fraudulent gold sales on paper depending on everybody not wanting their gold at the same time. the crooks on wall street controll all markets all commodities its all rigged, they have hundreds of trillions in wealth and debt under their throne of Babylon the great more than government their the biggest threat

Scott Montgomery Kelly
Scott Montgomery Kelly

Further evidence that this country has been marching down the road to corporatist implemented socialism ever since the day that JP Morgan lent money to the US govnt to prevent the country's bankruptcy.

Andrew Nguyen
Andrew Nguyen

This was a huge step on the road to hell for the US economy.

JonPOgden
JonPOgden

@ChristopherFaille I wonder how long it has been since a president worried more about the long term, as opposed to simply kicking problems down the road for his predecessor to take care of.