''THE US HAS ALREADY GONE BANKRUPT TWICE IN THE LAST CENTURY''

From GoldSeek
By Jeff Berwick

''It is our view that the modern USSA needs to be looked at in terms of its regression (not progress) since the Federal Reserve was put into place in 1913 and income tax was introduced. Less than two decades later and the US Government was already bankrupt. The only way it could salvage itself in 1933 was to confiscate much of the real wealth(gold coins and bullion) of its citizenry and devalue the dollar. This was bankruptcy #1.

After World War II, two facts led to it’s predominance in the global economy. The USSA was the only modern, industrial economy to survive intact and the establishment of the Bretton woods system that positioned the USD as the world reserve currency. This position was abused by the cynical political class and their wealth was squandered throughout the 1960s with the unnecessary war in Vietnam and the institution of the “Great Society” welfare state programs. By 1971, the US Government was again bankrupt.

This time, on August 15, 1971, Richard Nixon reneged on the promise to exchange the US dollar for gold. The world went into shock. For a period of time the US dollar barely traded on international markets. In Germany, where they have experience with hyperinflation, US dollars were not accepted by any currency exchange shop for a number of weeks as people around the world threw up their arms in anger. But... what could they do? Nothing. And what were the viable alternatives at the time? There were none... so, after a few weeks, people just continued to use the now pure fiat dollars.''

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