From it’s beginning The powers that control the world banking cartel knew the extreme profit and control that can be generated from a freely floating fiat monetary system. The Federal reserve was never meant to bring prosperity or to stabilize the United States. It’s purpose is subjugation and extraction of goods from citizens under such a system. With an increase or decrease of the money supply and the ability for governments to operate in debt They are no longer bound to normal rules of economics.
The system has a flaw It was known by those who sought to institute it. After the Second World War, a system similar to a gold standard and sometimes described as a “gold exchange standard” was established by the Bretton Woods Agreements. Under this system, many countries fixed their exchange rates relative to the U.S. dollar and central banks could exchange dollar holdings into gold at the official exchange rate of $35 per ounce; this option was not available to firms or individuals. All currencies pegged to the dollar thereby had a fixed value in terms of gold.
Starting in the 1959–1969 administration of President Charles de Gaulle and continuing until 1970, France reduced its dollar reserves, exchanging them for gold at the official exchange rate, reducing US economic influence. This, along with the fiscal strain of federal expenditures for the Vietnam War and persistent balance of payments deficits, led U.S. President Richard Nixon to end international convertibility of the U.S. dollar to gold on August 15, 1971 (the “Nixon Shock”).
That says it right there. Seeing the benefit of the German government’s ability to create currency without backing and it’s ability to sustain the war was astounding and gave those in control of the printing press great power. Also holding the Gold most of Europe was afraid to lose during the War The united states found quickly they were unable to sustain the economy if the European nations extracted their gold. A devious plot was hatched to disconnect the dollar from Gold and Offer to the European nations More paper dollars which all of these countries we’re now using for gold exchange. For a very brief time this had benefits but it is an unsustainable system. By the end of the war German citizens we’re using their currency to keep their houses warm. It was worthless.
This was meant to be a temporary measure, with the gold price of the dollar and the official rate of exchanges remaining constant. Revaluing currencies was the main purpose of this plan. No official revaluation or redemption occurred. The dollar subsequently floated. In December 1971, the “Smithsonian Agreement” was reached. In this agreement, the dollar was devalued from $35 per troy ounce of gold to $38. Other countries’ currencies appreciated. However, gold convertibility did not resume. In October 1973, the price was raised to $42.22. Once again, the devaluation was insufficient. Within two weeks of the second devaluation the dollar was left to float. The $42.22 par value was made official in September 1973, long after it had been abandoned in practice. In October 1976, the government officially changed the definition of the dollar; references to gold were removed from statutes. From this point, the international monetary system was made of pure fiat money.
Now as of this post Gold is valued at $1,246.20 it is a slow bleeding of the purchasing power of the U.S. Dollar And the certain consequences of this system is always a currency collapse, in this case the pain will be felt around the World. Silver and Gold as then is the only way to preserve purchasing power and it’s rise will continue until the dollar no longer is valid