Fifty-one years ago this week, President Richard Nixon slammed shut the “gold window” and eliminated the last vestige of the gold standard.
Nixon ordered Treasury Secretary John Connally to uncouple gold from its fixed $35 price and suspended the ability of foreign banks to directly exchange dollars for gold. During a national television address, on Aug. 15, 1971, Nixon promised the action would be temporary in order to “defend the dollar against the speculators,” but this turned out to be a lie. The president’s move permanently and completely severed the dollar from gold and turned it into a pure fiat currency.
I have some sobering news for you.
Politicians lie.
No, no, not just the politicians you don’t like. I mean pretty much all of them – with a few rare exceptions. It’s like part of the political DNA.
Politicians are liars.
I’m sure you don’t need me to tell you this. Let’s just call it a friendly reminder.
I was reminded of this fact as I wrote an article about the anniversary of Richard Nixon slamming shut the gold window for the Tenth Amendment Center.
