The Death Of US Dollar
On August 15, 1971 the U.S. dollar died. President Nixon severed the relationship between the US dollar and gold. Gold is tangible, precious and limited, thus is considered as the real money in the world. By depegging away from gold, the US dollar lost its real value and become just a worthless paper. It’s no longer viewed as money but currency.
After 1971, the central bankers could create money by merely printing more paper. In today’s digital age bankers do not need paper to create money.
The rules of money have been changed!
Many years ago, price of gold was fixed at $35 dollars per ounce, but no longer after President Nixon’s decision. Once Nixon took the United States off the gold standard, gold’s price started to rise. In May 2009, gold has crossed over $900 an ounce. The US dollar has lost its purchasing power.
The stock market is crashing because cash is flowing out of equities into savings, bonds, gold and silver.
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