Comment: Good point but recheck the math

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Good point but recheck the math

The devaluation was 70% not 40 %. If you exchanged 20 dollars for an ounce of gold and then the government took it and gave you back your 20 dollars and then told you that you can now get your ounce of gold back but we will only exchange it for 35 dollars that is a 70% decrease in the purchasing power of the dollars. (Inflation……..that was the goal) This is really the reason so many hated FDR. A lot of New Deal Programs were stated under Hoover (can you say Hoover Dam…….which was renamed Boulder Dam by FDR). FDR was hated for stealing the wealth of “Savers”…….for the benefit of “Debtors”.

The math looks like this:
35-20.67= 14.33 14.33/35= 40%
35-20.67=14.33 14.33/20.67=70%
This is what Cyprus would do if they were on a gold standard and not fixed to the euro……well they would probably just do Quantitative Easing……..buy bonds with freshly printed fiat currency.

This is a great video. Have you ever seen it?

http://www.youtube.com/watch?v=LKsZ1hqHBHU&feature=related