24 votes

Ron Paul - The Fed Has Lost Control- Why That's Good for Gold & Silver

The traditional thinking is that QE helps gold and silver and that stopping QE would strengthen the dollar and further weaken gold and silver.

This post concludes the opposite:

“The United States can pay any debt it has because it can always print money to do that.” Former Federal Reserve Chairman Alan Greenspan responding to a question as to whether United States Treasuries were safe to invest in.

From a (kinda) Gold Standard to Petro Dollars to the Printing Press

Since the end of World War II the United States dollar has traditionally been a strong currency in relation to other currencies. The Bretton Woods Agreement of 1944 established, among other things, that the United States dollar would be the world’s reserve currency. According to this agreement the dollar could be exchanged by other countries’ central banks into gold upon request. This “gold standard” coupled with the United States’ preeminent military and economic position, gave the world confidence that the dollar was as good as gold.

By the late 1960′s after a decade of massive U.S. spending relating to: the space race (resulting in landing a man on the moon in 1969); the cold war with Russian; the Vietnam War and; new and expanding social welfare programs associated with Lyndon Johnson’s Great Society it became clear that the United States was spending far in excess of any gold reserves it might have to back the dollar.

France’s President Charles DeGaulle recognized the potential and actual monetary abuse by the United States under the Bretton Woods agreement:

http://smaulgld.com/why-the-end-of-quantitative-easing-may-b...

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.

lost control?

Ron Paul is right !-the ten year note yield is up to 2.89%

up from just 1.6% in may!
Ron Paul is right the fed is losing control of rates
Remember they are still doing QE full blown-just talking about stopping has made rates rise 80%

Please subscribe to smaulgld.com

Peter schiff thinks tapering is also bad for the dollar but

for a difference reason-if they taper they will have to do more QE
http://www.youtube.com/watch?v=7sdU19ErU2o
I think if they keep up QE its bad for the dollar and if the stop it its also bad for the dollar

Please subscribe to smaulgld.com

Cyril's picture

BUMP... "Better late than never."

BUMP.

For important historical recording of De Gaulle to know about.

"Better late than never."

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

Thanks was waiting for your comment

knew you would appreciate the reference to Charles de Gold

Please subscribe to smaulgld.com

Cyril's picture

Related and more constructive than my previous comment hopefully

Related, and more constructive than my previous comment, and for your own sake, hopefully...

"Why Did Silver & Gold Collapse?" (or "The Cruelest Joke Ever Played") by Mike Maloney & Chris Martenson :

http://www.dailypaul.com/282804

Keep yourself safe.

Hang tight.

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

it was the Arab oil embargo......

that caused the "energy" crises of the 70's.
and Jimmy carter to wage the "whip inflation now" fight.

or thats what we were told anyhow. I remember it well.
it had nothing to do with Nixon defaulting.in 1971.

There were many causes of the inflation of the 1970's

including the two oil shocks, and the deficits run up from the great society and vietnam war.
Nixon closing the gold window was also a factor.
The Whip inflation now campaign was the brainchild of the Ford administration with the WIN buttons that were going to drive inflation away.

Please subscribe to smaulgld.com

Cyril's picture

Yes.

Yes.

FR : € 1.60/L (avg.) and 1 gal. = 3.78 L and € 1 ~ $ 1.33...

=> in $FRN... $ 8.05 / gal. :

http://www.prix-carburants.economie.gouv.fr/

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

Cyril's picture

Taste it, guys.

Charles De Gaulle: France's last president worth of the name.

And even him turned out to be wrong (read: overlooking) a few times, on the late in fact, about the actual state of decay of the western world.

Now, taste it, France.

And you too, America, taste it.

Taste your respective socialist system.

Taste it full mouth.

/rant.

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

Don't just taste it, swallow

Don't just taste it, swallow it against your will.

Was that too far? Who cares.

Cyril's picture

To be honest, I somehow regret that comment I made.

To be honest, I somehow regret that comment I made.

It's just my bitterness has been reaching peaks lately.

For the same old, various, tiring reasons.

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

DJP333's picture

It's not an easy road

knowing the things we know from the articles, writings and other content on this site. But at least we are coming together to inform people and things are changing in front of our eyes (at least a little). Think about Ron Paul, doing it alone for so many years, yet he had the patience and optimism to carry on. We all have to do the same, keep informing and de-schooling people. Ron Paul says, they cannot unhear what you said, and when they watch news in the future, they just may see it in a different light, due to your input,and start to realize the world is not what they thought. Stay strong Cyril.

"It’s not pessimistic, brother, because this is the blues. We are blues people. The blues aren’t pessimistic. We’re prisoners of hope but we tell the truth and the truth is dark. That’s different." ~CW

Cyril's picture

Thank you. I'll try.

Thank you. I'll try.

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

It is ironic

In Chinese, we can refer to the US Dollars in two way, "Mei Yuan" = "American Yuan" or "Mei Jin 美金" = "American Gold". Even till now, we still talk in such a way when we refer to price in US Dollars. I guess it was such an ingrained idea from years ago, that US Dollar is as good as gold. Also, we don't refer to any other currency using "gold".

any predictions the directon of the dollar gold and silver?

next week may be a pivotal week

Please subscribe to smaulgld.com

information bump.

no time to comment, but this article helped me to connect a lot of dots.....

Thanks research and writing it also helped me

come to the conclusion that the printing press is the new gold standard and is what is holding up the dollar today
Take it away and the dollar falls

Please subscribe to smaulgld.com

if the Fed loses control of rates

they would print more which would further undermine their ability to control the game and the price of interest rates and the integrity of the dollar

Please subscribe to smaulgld.com

Bump.

This is great

Obedience to God is resistance to tyrants.

Thanks Will

I tried to put together a precise history of the dollar since WWII
There is plenty more pre WWII with the creation of the fed and plenty I left out post WWII

Please subscribe to smaulgld.com

Would like to see a rebuttal to the above

how stopping QE crushes gold and silver and strengthens the dollar

Please subscribe to smaulgld.com