Forty Years since Nixon's Great Crime

In 2004, 2005, and 2007 I posted about the Nixon ending the Gold Standard.

Tomorrow marks the 40th anniversary of Nixon ending the Gold Standard and since then, especially in the past four years our "leaders" have fully bankrupted us.

Gold in 1971 was priced at the artificial price of $35.00FRN because of the Bretton Woods System and by the end of 1971 it was priced at $44.20FRN- a 38.804% increase. Then, by the end of 1972 an ounce of gold sold for $70.30FRN a jump of just over 100% in sixteen and half (16½) months, peaked at the end of February 1975 at $185.25FRN and was down to $140.25FRN at the end of the year (appreciation to KITCO for making the graphs available). From then until the peak in 1980 until 1999 the pricing stayed relatively flat and if interested, you can see the average price from 1968 until today here (appreciation to the Gold Information Network for having the data available to all).

Now, let us recall that the peak price for gold was January 21st, 1980 at $850.00FRN and that it recently hit a "high price" of $1814.80FRN on the spot market which seems on the surface to be a new record, but it is not.

Thanks to inflation, it will take $2,328.45FRN to beat the old record, in equivalent FRN (1980 $850.00FRN = 2011 $2,328.44). This means that gold is $513.65FRN away from the record or 35.331% away and one third (1/3rd) away which seems like a lot, but even the JPMorgue thinks it very well may hit this price and pass it by the end of this year.

Many think and believe it- I know I do but unfortunately, I am not a wealthy man, nor do I have funds to allocate to it and frankly never have. My Wife and I put food on the table, pay our bills and store what we can and have done so for a number of years but never really had a lot of disposable funds. Some of this was unintended bills, others were our mistakes and will never blame others for OUR choices.

Banksters, corporations, politicians, and parasites do such- we do not. They never risk themselves, always others and the fruits of others labors is what they choose to use via corrupt legislation that become laws- which they pay for to the politicians.

Everyone knows this and most in the united States have their livelihood tied to this and they do not want it to end.

However, it cannot last as there is NO SUCH THING AS PERPETUAL MOTION.

The Republic of these United States is bankrupt and yesterday, the Iowa Straw Poll was won by Michele Bachmann by LESS one percent (1%). A woman who has always worked for government- first as an IRS Agent who put people in jail over taxes and then her husband and she collected a portion of her funds from foster kids.

The Bachmanns were licensed by the state from 1992 to 2000 to handle up to three foster children at a time; the last child arrived in 1998. They began by offering short-term care for girls with eating disorders who were treated through a program at the University of Minnesota, said George Hendrickson, the chief executive of PATH Minnesota, the private agency that handled the placements.

While Mrs. Bachmann may have envisioned herself caring for unwed mothers, as she said in 2006, Mr. Hendrickson, who worked with the couple for four years, said that to his knowledge, none were pregnant.

He said the Bachmann home was "technically considered a treatment home," which offered a higher level of reimbursement. (The current rate is $47 a day, Mr. Hendrickson said.) That designation required a higher standard of care from parents who had the educational and emotional capability to handle "serious mental health issues." Dr. Bachmann's training was an asset.

Now, realize today's $47.00FRN rate was just over $29.00FRN's (once again, using the BLS Inflation Calculator for this) in 1992 or $7830.00FRN for roughly nine months per child (scaled down to nine months for this figure for 1992). Today, that would be $12,597.31 for one kid (not counting the changes in law since then and the increase in monies via other programs for foster children). By 2000 that daily stipend was $43.68 or $11,793.60 for nine months per child. This does not take into account any ancillary business her husband GAINED by word of mouth for his therapy business because of the foster children.

Now, granted, these figures are estimation on my part but I think them valid when looking at this woman and those who tout her as a real conservative and a solution for our bankruptcy and in fact, most, as usual will not look or hear anything but soundbites.

Everyone of the GOP slate, except for one, has recently touted that the Federal Reserve needs auditing and the Thursday "debate" put on by FAUX NEWS was full of laughter due to the responses of those on stage- except for one, Ron Paul.

Across the Web, TV, Radio there are those who are and will continue to do their damndest to see him fail.

Each has a stake in his failure- whether they firmly believe he is wrong or have monied interests in the outcome, the goal is the same- the continuation of our ruin.

Ron Paul entered politics specifically because of Nixon's Great Crime and the only man who is running who has worked his entire career to see it corrected.

While still a medical resident during the 1960s, Paul was influenced by Friedrich Hayek’s The Road to Serfdom, which caused him to read many publications by Ludwig von Mises and Ayn Rand. He came to know economists Hans Sennholz and Murray Rothbard well, and credits to them his interest in the study of economics. He came to believe that what the Austrian school economists wrote was becoming true on August 15, 1971, when President Richard Nixon "closed the gold window" by implementing the U.S. dollar's complete departure from the gold standard. That same day, the young physician decided to enter politics, saying later, "After that day, all money would be political money rather than money of real value. I was astounded."

It is good to see more and more have awakened and are waking up, but they need context and history.

A goodly portion in Iowa did yesterday as Ron Paul nearly came in first- missed it by nine tenths of a one point (9/10ths of 1%) and for those that think this a loss, I will point out that the IRS Agent had roughly twenty percent (20%) of her supporters either cast votes for others or not at all and squandered $35,310.00FRN on poll tickets.

If he had won first place, all of those wanting Ron Paul to fail would have touted that the poll meant nothing, but they cannot now as those very same are touting it as propelling the IRS Agent into the lead.

This was a huge win for Ron Paul, but even more so for Liberty as he has often said, it is not about him, but the ideas of Liberty and Freedom.

Ron Paul started his career forty years ago, has spent those forty years fighting against Nixon's Great Crime and the next sixteen months will be the culmination.

What do you want, those that wish to dictate how you and others live, or a man who started his his career in politics for his and others liberties?

WP