American Debt - Inflate It Or Die

2. After France wanted all of its debts redeemed in gold, President Nixon was forced to close the gold window to the world back in 1971. Effectively stopping any further gold redemptions on American debt from abroad and ending the Bretton Woods Agreement. Currently America holds about 8,133 tons of gold bullion. That is around 2.4 times more gold held than any other nation. Germany is ranked as the number two nation in the world for gold reserves. Germany has more than 3,396 tons gold bullion.

3. What was the reason President Richard Nixon closed the gold window to the world? Furthermore, why were President Nixon and his cronies rejecting to exchange any more of America's gold for US debt? The answer is crystal clear; The American leadership at the time already knew America's gold was its only true form of money and a tangible asset. Several of America's leaders back then actually had a brain.

4. They knew with all certainty the Federal Reserve notes already printed and in global circulation were now worthless. Reason being the dollar currency went from being pegged at ten percent gold, to overnight being attached to nothing. They also understood America's debt was growing with the dollar, and it was unlikely these debts would ever be paid off. They even understood back then that as US debt and deficits increased, somewhere down the road the US economy could be destroyed.

5. No amount of additional monetary stimulation is going to turn around the economy in its present state. A huge number of businesses are already either closing or un-able to earn any real profits. Unemployment numbers are well above 20 percent, if you look past the government statics and main stream news and start observing the U6 numbers. Bottom-line it's now down to two tough choices; the economy either gets inflated to see another day or dies.

6. Could There Be a Different Way Out? Yes there's still one option remaining. The Federal Reserve seems helpless in their fight to reduce or stop the deflationary forces that are currently impinging upon the economy. In actuality the world itself is currently deflating. The only recipe that can repair deflation is deflating the value of the currency itself. There is one additional option remaining that will probably never be considered by those in power. But none the less it could work if the politicians and Fed had the guts to carry it out. Remember America's giant stockpile of gold bullion? There is around 8,133 tons of it held up inside America's vaults. The fix here would be to substantially increase the price of gold overnight. Back in 1933 President Roosevelt raised the price of gold from $20.67 to $35.00 per ounce by empowering the "unilateral edict" in a bold attempt to re-inflate the economy.

7. Sources: http://www.linkedin.com/company/fix-the-debt-campaign http://ezinearticles.com/?American-Debt---Inflate-It-Or-Die&id=7272678