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40 Years Ago Today: The Day Nixon Created Ron Paul - August 15, 1971

This video shows Nixon announcing that the dollar will no longer be backed up by gold in international transactions. The alarming event sparked the political career of a doctor named Ron Paul.

Nixon Ends Bretton Woods International Monetary System:


Source: http://silvergoldsilver.b...

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“It is not our part to master all the tides of the world, but to do what is in us for the succour of those years wherein we are set, uprooting the evil in the fields that we know, so that those who live after may have clean earth to till." -J.R.R. Tolkien

Debbie's picture

Thanks!! Very interesting to see that, after hearing about it

for so long. *Wow* The rhetoric they used then is THE SAME as today! He just lied point blank to the audience' face.


"Ron Paul remains media poison"


"I never submitted the whole system of my opinions to the creed of any party of men whatever in religion, in philosophy, in politics, or in anything else where I was capable of thinking for myself." - Thomas Jefferson

SteveMT's picture

MSM story about this 40th anniversary: No mention of Ron Paul

Today Marks 40th Anniversary of the Dollar’s Divorce from Gold
On Monday August 15, 2011, 12:33 pm EDT

Writing in the New York Times, [John Brooks] voiced “a suspicion that the president and his advisers, in making their Draconian move, did not understand what they were doing.”Robert Bartley, The Seven Fat Years, p. 33.

Today marks the 40th anniversary of President Richard M. Nixon’s decision to sever the dollar’s link to gold. Though private markets had begun to price in a floating dollar well before August of 1971, it was on August 15th forty years ago that Nixon committed this most colossal of blunders.


As is well known now, though the dollar bought roughly 1/35th of an ounce of gold in 1971, today it buys less than 1/1750th. It gets interesting, however, when we notice just how little some things have changed in the last forty years.


Of course, as has been explained with great regularity in this column through references to books by Benjamin Anderson (Austrian School), Liaquat Ahamad (Keynesian School) and Adam Fergusson (When Money Dies – ideology unknown), during periods of monetary debasement there’s often a reorientation of investment into the hard assets least vulnerable to currency devaluation.


Ever-enterprising individuals can thrive no matter the chaos foisted on them by feckless monetary authorities. But the question is how much more successful we’d all be if money had maintained its simple purpose as the facilitator of trade and investment. Floating money values, though not a policy of the past, will, if allowed, author our descent into it. To reverse a needless decline, it’s essential that we revert to the historical norm of stable, gold-defined money values that are so essential to a thriving, evolving economy.


Thanks Steve, Good Post.

The USA held about 24,000 metric tonnes of physical Gold after WW 2 because they were the only industrial nation with manufacturing capabilities left after the other industrial nations of the WW 2 era, got bombed out.

See my 15:55 post way below for more.


Nixon = Douche Bag

yes, he does.

Take the Red Pill at www.redpillphilosophy.com New Videos, Articles, and More!

Gold Standard or Nixon Standard by Gary North


What he abolished was not a gold standard. It was a government promise standard. There was never a gold standard in the nineteenth century or early twentieth century. It was always a government promise standard. It was as reliable as government promises.

Governments enforce autonomy over money because they want autonomy from the public.

Link: http://lewrockwell.com/north/north1020.html

Excelent post.

This is literally the basis for growing government and the military to what it is today.

Without the limits on the FED to print money which the (partial) gold standard provided at the time, politicians could promise the moon and actually deliver on the promise.

Except that it was all a lie based on having the ability to counterfeit money.

Then they re-jiggered how they measured inflation to propagate the lie and presto, the sky was the limit.

But since economic law mirrors physical law, the lie was discovered (although very slowly) and here we are today...

...broke, busted and disgusted.

"We have allowed our nation to be over-taxed, over-regulated, and overrun by bureaucrats. The founders would be ashamed of us for what we are putting up with."
-Ron Paul

This is apparently a missing segment of the film in the post

1944 Bretton Woods International Monetary Conference (newsreel) http://www.youtube.com/user/danieljbmitchell#p/u/369/GVytOtf...

Nixon imposes wage and price controls to combat inflation!


He says this either before or after he promised that the closing of the gold window would not decrease the value of the dollar.

And more on nixons wage price increases http://www.youtube.com/user/danieljbmitchell#p/u/40/yYwvi6wNHNQ



Radio News Report, Mar. 1972: Despite Wage-Price Controls, Price Hikes & Labor Unrest

The Smithsonian International Monetary Negotiations of 1971 http://www.youtube.com/user/danieljbmitchell#p/u/78/1ECR9h21neE


The "New Prosperity"/ The "New Deal"...

The "New World Order"...

Nothing "New" about B.S being peddled to impoverish and control people. It's as old as dirt really.

RON2012PAUL...The r3VOLution continues...
"I always win"
+GOLD and SILVER are money+


Something NOT right..

Something wrong ....when I voted earlier Perry was at 50%...RP at 25%....now PErry 20% and RP 70%....someone is messing with us!

RP quote

Here is some more info, some typical anti-gold crap, and a Ron Paul quote on the subject:


No King but Jesus, no President but Ron Paul

There's got to be a better verb than created.

Provoked? Pushed? Shoved? Offended? Crossed? Picked a fight with?

One man creating another equals Frankenstein, a monster. Nixon actually created the monster of fiat currency, and Ron Paul stepped up to slay it.

reedr3v's picture

That was my thought too, after appreciating

ruckmanite's OP and its concept. Catalyzed would work but its not a good headline term...launched, or fired up?

Who will get older? The Paper-Only-Dollar or the GDR?


The GDR died at 41.
Now it seems so obvious she had to die...Actually, she got killed...In 2012, Ron Paul will come just right in time...

All the best from Munich, Germany

Hasta la libertad, siempre ;-)

Thanks For The Video.

This video clearly tells me that these wars were already starting to bankrupt the USA in 1971. While Japan at that time recovering from WW 2, began to surpass the USA in monetary wealth, without the benefit of natural resources that the USA had plenty of, and without any involvement in wars.

The Vietnam war had been going on for about 10 years in 1971, with no end in sight.
Contrary to many who believe wars create jobs, in reality wars eventually bankrupt a nation and leave it much worse than before the war.
The bankrupt old USSR, rich in natural resources, is my example.

If the USA ever hopes to prosper again, elect Ron Paul President, a man who will stop sense less wars ! The USA was not invaded by Iraq, Afghanistan, Libya, Pakistan, Somalia, Yeman, etc.,,,,,Why are our military and hired mercenaries over there?


We buried many millions of ounces of gold worth of technology

In missile silos all over the United States.

Plus the Great Society Welfare handouts.


Free includes debt-free!

It always has been and always will be about loyalist

At 0.03 you have "the new prosperity" or in today's language NWO

Who are the speculators he is talking about? People who would rather have the gold than the dollar.

Then he says; "to our friends abroad including the many responsible members of the international banking community who are dedicated to the stability of the flow of trade. I give this assurance. The United States has always been and will continue to be a forward looking (anyone hear the word forward leaning used anywhere today it is a progressive term used on MSNBC right now)and trustworthy trading partners. In full cooperation with the international monetary fund (which will later be used to set up the World Bank) and those who trade with us. We will press for the necessary reforms to set up an urgently needed new international monetary system (international monetary system? that sounds like destroying the American dollar not strengthening it). Stability and equal treatment is in every-bodies best interest. I am determined that the American dollar must never again be a hostage in the hands of the international speculators

Then he goes on to set up an import tax which is an isolationist move.

Again in hind site; These old school republicans are just as progressive as the Democrats. They are both for Global Government All they are fighting for is will it be set up in a communistic fashion or will it be more fascist in nature. They do not care about the common man. They care about winning the power struggle for control, while most Americans are fighting for one side or the other to win so they can be their masters. It is the craziest thing Ive ever seen. Some people say they are two sides of the same coin. I say In their minds they are the coin and we get given only two images on each side. Until know no one could look at both sides at the same time, but with the internet, people can pull up a split screen and see the truth. Neo-cons are progressively fascist and Democrats are progressively communistic. They are both croni-ologarcy lovers of elitism (loyalist). They are looking for a King!!!!!!

Nixon's fault?

Is this really Nixon's fault? I mean, would we have been better off with a gold standard, but without any gold after it was all collected by the foreign holders? I mean, the breakdown of the BWS wasn't good for the markets, but it saved America's bacon when it came to gold holdings.

It was the Federal Reserves fault

Gold was pegged at $42 and ounce. The Fed had printed so many dollars that foreign investors could turn in their dollars for gold. Then sell the gold abroad for the same number of dollars and profit. They could then repeat forever.

If the Federal Reserve had not inflated the money supply thereby depreciating the value of the dollar, this couldn't happen.

My guess that the Federal Reserve members were draining away the US gold.

Free includes debt-free!

In 1971 The U.S. Governments "Fixed" Price Of Gold Was $35.00.

Per ounce, set in 1934 by Roosevelt.

While in 1971 the world's free market price was over $40.00 per ounce.
That's why with France leading the charge, foreign nations around the world were simply trading American, Gold redeemable dollars for physical Gold, which in turn was drawing down the USA's stock pile of physical Gold which had swelled to about 24,000 metric tonnes after WW 2.

Nixon was an idiot because he could have simply gone to Congress to raise the official U.S. price of Gold to match the world's free market price, which quite possibly would have stopped the USA Gold drain.

Ron Paul For President in 2012 !


Audit the Gold!

Seems like EVERYBODY can understand the need to check and see if our gold is still physically there or if it's still ours.

I think it would be brilliant strategy for RP to make this a huge issue during his campaign.

He should demand: If we have the gold, prove it.

And he can't continue to be so harmless.

"Prove it," he should say. And as to the obvious question of why? He should say, "Because the families that own the Fed Reserve have stolen it!"

Call out names.

This whole issue is powerful because it shows so clearly the division between the ruling oligarchy and the rest of us.

It's a true populist position and if Hitler could take advantage of such easy PR strategies, why not RP, an honest, good man avail himself of the best leverage.

"It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a rEVOLution before tomorrow morning." - Henry Ford

Every 40 Years the World Gets a New Monetary System - What Next?


90 Minute special released this coming Wednesday!

RP 2012,

- james

"Freedom on this Earth can only be found within oneself. All the power you'll need is inside - embedded within you."

Correct me if im wrong

Ive heard a fiat money system ends every forty year. A friend told me that hasnt always been the case. The British used sticks (forget what they were called) for well over forty years. The forty year year seems more like a rule of thumb.

Ive been thinking all day about an article i read a couple weeks ago by,I think, Jim Sinclair, in which he says a mathematical formula exists that puts the failure of public trust in paper money at a time when gold reaches $1,764(?). On the 40th anniversary of the closing of the gold window gold closed at $1,766.

A temporary measure

Note that he "temporarily" closed the gold window. In fact, after he did it, the dollar was officially devalued to $42.22 per gold ounce. But as we know, the window never re-opened.

Ĵīɣȩ Ɖåđşŏń

"Fully half the quotations found on the internet are either mis-attributed, or outright fabrications." - Abraham Lincoln


I didn't know he also up and created/imposed a new import tax. And Congress did nothing?!?

Let me get this straight:

Creating an unbacked fiat currency did this:

1) It made the "international banking speculators" (read, "the money trust" or The Federal Reserve banking cartel) unhappy.
2) It helped the common man

Got it! So far, the "working man" will benefit, and those greedy bankers will be upset. Continuing on...

3) The dollar won't be devalued, but it will be stabilized.
4) It will help create jobs for Americans.
5) Prices of foreign exports MIGHT go up, but American goods purchased with American FRN's (Fed Reserve Notes) will not go up.

Let me ask you, ladies and gentlemen, at what point did Pres Nixon NOT lie? What did he say that wasn't an outright lie?

Furthermore, is it not quite obvious that the president of the U.S. is simply a pawn of the banking cartel. They write the speech. And our president dutifully follows the script.

We need to seize control of the national dialogue, it's not Repubs vs. Demo's, it's not conservative vs. liberal, it's not LEFT vs. RIGHT, it's we enslaved Americans who want to be free against these hard core criminal banking families, like the cocky one who made said this:

"Give me control of a nation's money SUPPLY, and I care not who makes the laws."

"It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a rEVOLution before tomorrow morning." - Henry Ford

Did Nixon inadvertently describe a conspiracy?

Gary Allen's book The Man Behind the Mask: