It’s time to step back in time so we can appreciate where we are. The MSM would like you to have zero context and pretend as if all the things happening today just magically appeared out of nowhere.
Low context is the way of all totalitarian systems. When the Che Guevara hat-wearing revolutionaries take over, they always topple the statues, scatter the Christians, and burn the history books. Cultural context is anathema to those seeking power over your life.
People unanchored in any contextual relevance are much easier to control and manipulate. People who know their roots, have a firm core of spiritual integrity, and can spot a scam are a threat to the system if that system is illegitimate.
Well, friends, nothing is more illegitimate than the Federal Reserve and the entire system of debt-based fiat money coupled to enforced taxation of income and property. But that’s a deeper discussion to be had another day.
For now, let’s meditate on this chart:
To appreciate that inflationary inflection point, we need the following historical context.
- In 1913, the US was a prosperous and rapidly growing nation blessed with abundant natural resources and a hard-working and skilled labor force. It was that year that the Federal Reserve was established.
- In 1933, the country was gripped by the Great Depression, and all of its gold was handed over to the Federal Reserve, marking the official bankruptcy of the formerly prosperous, industrious and wealthy nation.
- In 1944, The Bretton Woods agreement made the US dollar the official reserve currency of the Western nations, but really the whole world.
- By 1971, that privilege had been so thoroughly abused that Nixon had to “temporarily” suspend the gold window.
This is a “before and after” story. Before 1971, all US debt creation and monetary expansion had a tether to gold, which means they had a limiter placed upon them. The amount of gold the US had, or was willing to part with, defined the limits of what could be done. No more gold? No more credit.
This was found to be politically inconvenient, of course. Who wants limits?
So Nixon “slammed the gold window,” preventing our foreign partners (such as France, notably) from exchanging all their piled-up surplus dollars for actual gold.
by loops