Price: Somethin’s Gotta Give!

Rounded figures, based on

World population:

In 1971: 3,761,000,000 human beings.

In 2020: 7,900,000,000 human beings.

In forty-nine years, the population of our World more than DOUBLED – the Earth’s population in 2020 was 2.1 times the population of the Earth in 1971.

When President Nixon declared, on August 15th, 1971, that US deficits on its Balance of Payments would no longer be paid off in GOLD, the US was already on an unstable economic path. The elimination of further payments in gold, to cover the deficit in exports, was a sign of economic weakness on the part of the US.

The fact is that the US has been an economically sick country for many, many years, far before August 15th 1971, the date when the US refused to pay for its export deficits, with gold.

The US was already an economically sick country way back before the time of Franklin Delano Roosevelt´s presidency, when he finally got together with Henry Morgenthau in 1933 and decided to raise the price of gold, (i.e. lower the value of the dollar) from $25.69 to $35 Dollars a Troy ounce. (Furthermore, Roosevelt issued orders forbidding US Citizens from owning gold.)

Roosevelt screwed the foreign creditors of the US, who expected to be paid one ounce of gold for every $25.69 Dollars they were owed for their exports to the US, and paid them only one ounce in exchange for $35 Dollars of debt owed.

“The return to a gold standard” implies that the US must adopt a completely new way of life, which it has not followed since the 19th Century!

This is simply not going to happen.

Please consider how many millions of Americans are living today, thanks to the absolutely humongous DEBT racked up by the US over a hundred years of fiscal mismanagement. Millions of Americans today, are alive because the US Government issued DEBT in order to obtain Dollars, for spending to maintain “the American way of life” when it was far beyond the economic ability of the American people to pay GOLD for such a way of life.

“Going back to the gold standard” implies that the monetizing of the Federal Reserve Dollar ceases, and the National Debt is cancelled: The Federal Reserve Dollar vanishes and gold is, once again, the means of payment.

And what this implies is that, having ceased to receive the benefits of the fiat money US Dollars by innumerable channels, tens of millions of Americans will have to starve to death, because they will not have the gold with which to pay for their living expenses.

I repeat, this is simply not going to happen.

The world is most definitely, not going to return to the gold standard until some date in the future.

1. One road ahead, is for the US Government to realize that it cannot suppress the market price of gold indefinitely. A series of steps must be taken, to devalue the Dollar to many thousands of Dollars per ounce of gold.

Though enormously devalued, the Dollar will still circulate, simply because the population has no other means of payment at hand. The case of Weimar Germany in 1923 comes to mind. Life went on, with people moving wheel-barrow loads of paper money, in order to buy some food, until a monetary reform was effected.

Hugo Salinas Price

The devaluing Dollar will have the immediate effect of reducing the amount of imported goods coming into the USA, and immediately reviving local industry and putting millions of Americans back to work – the best therapy for a discouraged nation.

A monetary reform to gradually re-introduce gold coin into circulation in the US, as it gathers in multi-trillions in Dollars – perhaps “electronic dollars” – and delivers minute quantities of gold (or perhaps silver?) to the individual citizens in return, would have to accompany a new attitude of the US with regard to its international relations.

A great part of the travail suffered by the US in the course of the 20th and now the 21st Century, derives from its ingrained assumption that it is the supreme nation on this earth, destined to dominate and rule the whole world. The US will have to abandon this assumption and accept that it is simply one of many nations in the world, and cannot and must not attempt to impose its will on the whole world. Consequently, the US will have to banish “militarism” as one of the key supports to its political union, and thoroughly reduce its spending on the Military to a bare minimum.

That is, those who govern the US must accept and support the idea that “The Business of America is Business, not War.”

Recent events in Afghanistan are pointing in that direction. Historians of the future will be asking themselves: “What on Earth were American troops doing in Afghanistan, of all places?”

* * * * *

The fundamental problem of the USA is the form of its government; the country was founded as a Republic, in which only a few highly qualified men participated in public affairs; however, in the course of time the USA transformed into a Democracy, a system of government based on the votes of both men and women, and of both beggars and the wealthy: a system that invariably accepts the desires of the population far beyond the availability of resources, which leads to monetary inflation and the devaluation of the currency, as well as the need to wage war to in order to win the supporting votes of the population.

* * * * *

2. The alternative is a Third World War. The US government, unable to contain a collapsing social order, and forced to continue paying for imports with a Dollar that is devaluing daily (due to Monetary Easing by the Federal Reserve), will tell the population of the USA that it is encircled with enemies who seek to destroy the USA, and that Americans must “fight to the death, for their Freedoms”.

The outcome of a Third World War will be the disappearance of the United States of America and its Democracy.

Written by Hugo Salinas Price for In This Age of Plenty ~ August 26, 2021

FAIR USE NOTICE: This site contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a ‘fair use’ of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U. S. C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. For more information go to:

About admin

Please allow me to introduce myself; I am Jeffrey Bennett, President of Kettle Moraine, Ltd., the parent of Sierra Madre Precious Metals. I have been married for 52 years with two children and four grand-children, a veteran of Viet Nam, student of history (both American and film), and was host for fifteen years of Perspectives on America on the alternative airwaves, covering such subjects as, health and wellness, news, political satire, education and editorial commentary on current events through the teaching of history, and Protecting Your Wealth. In early 2018, I took a several month hiatus to complete some family business but returned to airwaves April 17, 2018). At the age of ten, I sat in a bank-vault in the Citizens Bank of Mukwanago, Wisconsin with my grandfather going through bags of old American Peace dollars, hand-selecting each coin as dated rolls of 20 coins were carefully put together and rolled. Learning of the history of these beautiful pieces of Americana, I asked my grand-father, "Why are we doing this?" to which he replied, "Because someday they are going to do the same thing with the silver in our money that, that (S.O.B.) Roosevelt did with gold in 1933." It took only six-years for his prediction to come to pass at the hands of a disciple of Roosevelt's... and what will a Federal Reserve 'dollar' purchase today - and what will that old 90% Silver Peace Dollar purchase? Although at the age of ten, there was little understanding of the meaning of it all, over the next half-century I became well-versed on the subject matter. During this summer of my education, I began to purchase silver coins as a collector and some small, international gold coins two years later - not an easy feat in the shadow of the Roosevelt confiscatory policies of 1933. Although those policies remained in effect until the mid-1970's, it was not until 1991 that I found that one could make a living providing precious metals and collectible, historic numismatic coins to a willing and concerned clientele. It was also during that year, that I began a relationship with one of the first Trust companies to give the public access to gold and silver as part of an Individual Retirement Account (IRA) - and Kettle Moraine, Ltd., founded in 1995, but have ceased providing service due the the intense change-over of the provider. In November 2011, after a 15 month broadcast on another network, I returned to the airwaves with my then revamped program, Life, Liberty & All That Jazz, and for over a quarter-century, I have been proud to serve the family of listeners of my numerous broadcast programs for physically-held precious metals for investors and collectors alike. On March 23, 2020 I launched my brand new - appropriately named program, The Edge of Darkness on the Republic Broadcasting Network, and thus continue to  remain available to our long time clients and their families. Ah yes - find out what "inter-generational" wealth provision has done for our clients over the past three decades. Don't buy the sizzle of that steak until you understand the cost! In other words, don't buy the bull being dispensed by the 'rare coin' pitchmen until you understand the full story. We, at Sierra Madre Precious Metals, will be proud to serve your needs.
This entry was posted in The Price is Right. Bookmark the permalink.