View Full Version : Betting On The Gold Standard? Audio from NPR

14th November 2010, 19:27
NPR .... Biggest load of Croc I've ever heard !!


You can listen to the complete interview (LIES !!!) here...


November 13, 2010

When the price of gold tipped $1,400 a troy ounce this week, the news fit right into a frenzy over the metal ignited by the World Bank president on Monday.

In a Financial Times column, Robert Zoellick wrote that the global economy should consider using the price of gold as an "international reference point of market expectations about inflation, deflation and future currency values."

His statement was immediately taken, in some quarters at least, as a call for a return to the gold standard. Although he later clarified his point, the fire had been lit. And Zoellick, for the moment, became a hero for a small group that believes the U.S. should return to the gold standard. At the same time, he drew ire from mainstream economists tired of having the discussion in the first place.

Abandoning The Gold Standard

The U.S. officially went off the gold standard under President Nixon. James Butkiewitz, an economic historian at the University of Delaware, tells NPR's Guy Raz that by the late 1960s, the global economy was volatile, with wild inflation some years and hyper deflation in others. By the end of the decade, he says, there were too many dollars being held in reserves by countries around the world, and their value was dropping. So those countries started to exchange U.S. dollars for gold.

"As our reserves kept dwindling, at some point we had to stop converting the dollar into gold. We weren't going to let our gold stock go to zero. It had already been slashed by roughly 40 percent of the value we had at the end of World War II, so we just didn't want to see it shrink any further," Butkiewitz says. "So people who understood the system, understood the consequences, knew that it had to come to an end."

Butkiewitz says those same people recommended that Nixon abandon the gold standard. The President agreed, but not without trepidation.

"Nixon and [Chief of Staff Bob] Haldeman were concerned that he'd be known as the President that had to leave the gold standard," the historian says. "And he felt that it would be interpreted as a sign of failure on his part."

On Aug. 15, 1971, Nixon announced his decision in a televised address.

And with that, the U.S. abandoned the gold standard without any legislation or major discussion. Butkiewitz says it sent shock waves around the world, though it was well-received by the American public.

Read the rest here.... http://www.npr.org/2010/11/13/131297988/gold-standard