Gold VS Fiat Money

The American Dollar existed unchanged in value (except for short periods of time) from 1792 to 1933 at US$ 20.67 to an ounce of gold. A period of over 140 years.

The British Pound existed unchanged in value (except for short periods of time) from 1717 to 1931 fixed at £3.88 per ounce of gold. A period of 234 years.

In 1933 President Roosevelt of America devalued the US $ by 69% measured against gold and now US$35 was required to buy an ounce of gold, not US$ 20.67. At the same time it became illegal for Americans to own gold. Between 1933 – 1971 the US $ was pegged at US$ 35 per ounce for foreign governments to exchange their dollars for gold.

On August 15th 1971, President Nixon took the US $ off the gold standard and the dollar has devalued chronically ever since.

You now need almost 50 times more dollars, around US$1000 to buy the same amount of gold as the dollar bought only 80 years previously (US$20.67)

You now need over 150 times more pounds, around £600 to buy the same amount of gold as the pound bought only 80 years ago (£3.88).

And during this period since 1933 the dollar was recognized to be the world’s reserve currency and the pound to be one of the world better currencies!.

The US$ since 1933 has lost over 98% of its value against gold, and the British Pound has lost 99% of its value against gold, as they career unrelentlessly towards Zimbabwe style hyper Inflation that all pure paper currencies that have ever existed inevitably have to follow.

If ever there was a mathematical certainty, history tells us this is it. With the Trillions of Dollars in bail outs now being created out of thin air by adding zeros to computers.

It stands to reason, if money can be created so easily and at no cost, it will in time become worth less ans less until it become totally worthless.

THAT IS A MATHEMATICAL FACT!

Posted in: gold