The View From 1776

How FDR Destroyed the Dollar

Until 1933, the U. S. dollar was the among the strongest and most stable currencies in the world.  With the stroke of a pen, President Franklin Roosevelt torpedoed it.  We are still plagued with the resulting inflation.

Posted by .(JavaScript must be enabled to view this email address) on 02/21 at 01:42 AM
  1. Ah, such is the consistent operational application of socialistic collectivism: "Never met a Standard we didn't hate."

    "Standards of behavior are inhibiting and restrictive. They put limits on our freedom to 'change' things! They are Conservative - not liberal and progressive. Standards are not intelligent. This is a recording."

    Sounds familiar. Where and when is the pragmatic analysis to begin - and take effect? At least in NFL football, Monday Morning Quarterbacking happens and signifies 'learning' in preparation for the future. Not so, the liberal socialist collectivist buffoon pragmatist.

    Unlike animals, humans do not have instinct to rely on for choice-making. We need Criteria; the prime tool of the mind for thinking and anticipating successful results prior to choosing. The self-induced cultural retardants never learn, since they abhor Criteria, and trust and worship themselves and their own opinion.

    What is the defense of those of the jackass variety? Listen:.....................there is none.

    semper fidelis
    Posted by Choicemaker  on  02/21  at  10:11 AM

    Copy and paste these two lines as one and you will have the link to a great movie on our currency, the Federal Reserve, etc. It is top rate, well done movie.

    In 1971, we had dropped from 649 million ounces of Gold in Fort Knox to 147 million as foreign countries cashed in dollars for gold. We, here, were blocked from doing the same. Running out of gold, we left the Bretton Woods policy and made a deal with OPEC to sell oil in dollars and we would protect them. From then on, we have been involved in the Middle-east in ways we probably wouldn't have, had we not made that deal.

    The dollar is now losing popularity around the world and the eruo has jumped to number one as the most popular currency. Thus, what cost us $.83 in 2000 that came from Europe now cost $1.31 because the value of the dollar has dropped that much to the euro.

    More and more analysts are concerned about the ability of the U.S. to avoid some very serious economic problems if the dollar continues its slide. The solution, normally, would be to raise the interest rate and get more people buying our debt. However, the fear is that with the housing bust already tied to rising interest rates, that would become worse and the rate hikes would slow business and consumption enough to cause a recession.

    Watch the movie and then you will understand a lot more about how hard it is for government to actually turn this nation around as long as we have deficit spending and social programs that have mandatory spending increases with a falling dollar raising the cost of everything seniors and others buy that is imported.
    Posted by JanPBurr  on  02/21  at  11:32 AM
  3. And the damage just keeps on rolling. With the decision by Nixon to protect Middle East oil sheikdoms in exchange for oil purchases to be accepted only in dollars (the term coined was "petrodollars") we've been able to buy a physical commodity, oil, for printed paper. Pretty slick. And one of the things that has infuriated one Osama bin Laden. So, we flood the world with printed paper. And that very advantageous agreement to the U.S. is in jeopardy with Iran threatening to accept euros at the March oil bourse. Oh, and does anyone remember that another mid east ruler threatened to sell oil for Snappy Sammy Hussein?
    I have a long background in gold and the dollar.
    I remember talking to a client over a decade ago when I worked at a gold company. She was originally from Hungary. After WWII the communists were in charge. She remembers the hyper-inflation in the late 1940's where her father filled a small suitcase with whatever the communist Hungarian currency was to go out and buy the daily bread purchase. She then told me that whoever had gold had it made, that the same amount of gold always bought the same amount of bread and groceries. Another story from another client was that his father in pre WWI Germany had put enough money in an account to pay for all four years of a college education. With the hyper-inflation of the Weimar Republic (the government had monetized the war reparations debt demanded in the Treaty of Versailles)that entire amount that was enough for a full college education was enough for one meal at the dorm.
    Tom has correctly outlined the incredible decline of the purchasing power of the dollar.
    I've been searching the internet for a graph I saw years ago. It showed the relative worth of the dollar since it's inception in the 1790's to the present date. The overall slope of the graph was flat (within a small deviation both up and down) until a certain point where there were the up and down, but the overall slope was down. The point at which the value of the dollar started to decline? 1913, the inception of the Federal Reserve. And the reason given for the Federal Reserve? To guarantee the integrity of the dollar.
    In the corporate world, the Federal Reserve would have been out of business decades ago for failure to perform its "stated" mission, not its real mission.
    Posted by Amendment X  on  02/21  at  12:40 PM
  4. FDR didn't destroy the dollar, it was already doomed when America sold its soul to the Federal Reserve....or should I say when the Federal Reserve stole it.

    The 16th Amendment was never Ratified!!!

    The Right Wing always wants to talk tough about how Liberals are ruining the ecconomy with reckless social spending programs....To them I say (and I am not a Liberal)........ what about the over 2 trillion dollars in unacounted for Pentagon Spending every year!!!!!!!!!


    You call that Conservatism? I call that a Coup!!!
    Posted by .(JavaScript must be enabled to view this email address)  on  03/01  at  01:48 AM
  5. There also actually isn't a law you have to file. But, you better have a very good attorney. There are some that are winning but they always have a jury trial and good lawyer that shows nobody can produce the law. The courts however, are stacked so you have to have a good jury.

    Also, what about the $54 trillion unfunded liability we face by 2030.

    Neither party is leading us away from the train wreck we are headed for.
    Posted by JanPBurr  on  03/01  at  02:06 AM
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