A Collapse or a Reset? | The Gold Standard 2435

What lies in store for our economy—a devastating collapse or a transformative reset? This episode of The Gold Standard video podcast features hostess Jennifer Horn discussing the nation’s financial landscape with Ken Russo. Together, they explore the critical question on everyone’s mind: Are we on the brink of an economic collapse, or is a financial reset on the horizon? The years ahead will tell us if we’re in for a collapse or a reset. As Jennifer and Ken discuss the future of the U.S. economy, Ken Russo brings his expert insights into gold’s role as a safeguard to personal wealth in uncertain times.

The Nixon Shock: A Turning Point in Financial History

As Jennifer and Ken explore the future of the U.S. economy, it’s another opportunity to reflect on a pivotal moment that drastically altered the nation’s financial trajectory. On a balmy Sunday evening in August 1971, President Richard Nixon announced the closure of the “gold window,” severing the U.S. dollar’s link to gold. This decision marked the end of the Bretton Woods gold standard and ushered in an era of unprecedented economic instability. Sure, the bank owners have made out like bandits, but no other single action by Nixon has had a more profound and destructive effect on the personal finances of US Citizens. The promise that a dollar was worth 1/35th of an ounce of gold was broken, leading to decades of inflation, unemployment, and financial crises. The implications of this “Nixon Shock” are still felt today as the world grapples with the fallout from abandoning the gold standard.

The Decline of the Dollar: From 1971 to Today

In 1971, when President Nixon took the U.S. off the gold standard, the dollar was a stable and trusted currency, worth approximately 1/35th of an ounce of gold. However, in the following decades, the dollar’s value has significantly declined due to inflation, a direct consequence of abandoning the gold standard. Without the discipline of gold backing, the U.S. government and Federal Reserve could print more money, leading to an increase in the money supply and a subsequent rise in prices. Over time, this inflation eroded the purchasing power of the dollar. What could be bought for a dollar in 1971 would now cost over six times as much today. This devaluation has profoundly affected savings, wages, and the cost of living, illustrating the long-term impact of moving away from a currency pegged to a stable asset like gold. This mirrors the ancient biblical warning in Proverbs 11:1, “The Lord detests dishonest scales, but accurate weights find favor with Him.” Just as dishonest measures in commerce lead to societal decay, the debasement of currency has historically heralded the downfall of great civilizations.

The Roman Empire, for instance, debased its currency by reducing the silver content in its coins, leading to rampant inflation and economic collapse. Similarly, ancient Greece suffered from economic instability as it diluted its coinage. These historical examples, much like the biblical accounts of nations that turned away from righteous practices, underscore the dangers of abandoning sound monetary principles. The U.S. dollar, once as solid as gold, has followed a similar path, with its value steadily eroding over time, resulting in financial instability and the erosion of individual wealth—a modern parallel to the consequences faced by ancient civilizations that neglected the principles of honest scales and sound money.

Gold and Silver: Timeless Stores of Value

For centuries, gold and silver have proven to be the most reliable stores of value and the foundation for sound money. Throughout history, civilizations have turned to these precious metals to stabilize their economies and safeguard their wealth. Unlike fiat currencies, which can be easily manipulated and devalued by governments and central banks, gold and silver offer a consistent measure of value that stands the test of time. From the Roman Empire to the Byzantine Empire, and even during the height of the British Empire, gold-backed currencies allowed for economic prosperity and stable trade across vast territories.

The reason behind gold’s enduring success is simple: it provides a stable foundation that resists the political pressures and economic whims that often lead to the debasement of currency. When President Nixon severed the dollar’s link to gold in 1971, it marked the end of nearly two centuries during which the U.S. dollar was backed by gold, a period that saw the United States rise to become the wealthiest nation in history. And just as we saw with events leading to the fall of the Roman Empire, the abandonment of the gold standard has led to a significant decline in the dollar’s value and contributed to the economic instability, greed and corruption we face today. As we navigate an era of fluctuating fiat currencies and financial uncertainty, the lesson remains clear—gold and silver have always worked well as the bedrock of sound monetary systems, and no better alternative has been found.
______________________________________________________________________________________________

Listen to The Gold Standard: https://www.midasgoldgroup.com/gold-standard-radio-show/
Gold IRA: https://www.midasgoldgroup.com/gold-ira/
Invest in Gold: https://www.midasgoldgroup.com/buy-gold/
Guide to Owning Bullion & Coins: https://www.midasgoldgroup.com/bullion-guide/
Read the latest precious metals news: https://www.midasgoldgroup.com/news/