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Old 05-15-2010, 05:52 PM
 
Location: Backwoods of Maine
7,309 posts, read 8,989,858 times
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Quote:
Originally Posted by Sandpointian View Post
The price of gold was fixed in 1834 at $20.67/ounce. This lasted until 1933

If had bought 100 ounces of gold then for $2067, it would be now worth (at today's price of $1128.70), $112,870. S.
The OP asked whether a currency could be devalued right away by a decision. The answer is YES.

In the example given in the quote above, FDR confiscated gold in 1933 and immediately re-valued it at $35. Theoretically, your investment of $2067 would have been worth $3500 almost immediately. The point is moot, however, as it was illegal to own gold in the US from 1933 until 1975. That was the way that they 'corraled' Americans into accepting a devaluation - by forcing them out of gold and into FRN's. Those FRN's were devalued overnight, as we had been on a gold standard up to then.

Some 70 years later, the Argentinian government did the same thing, but without using gold. They corraled the citizens into cash (they called it "corralito") and then closed the banks for 6 months. When they re-opened, everybody's cash was worth very little. The suffering that went on during the interim was tremendous.

We should keep our cash out of the banking system and in some other currency. Why? Because the same thing is about to happen again. Whether you choose gold, silver, the Cando, Swissy, or farmland, the time is right to invest in "real tangibles" and leave somebody else's idea of what constitutes "cash" to them. They will ********* if they can, and they will. Leave it in a bank, and you'll cry.
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Old 05-16-2010, 01:13 PM
 
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The Fed is just going to keep devaluing our money till it isn't worth the paper its printed on. The only way to keep some semblance of value is precious metals. With how Obama is spending it all, it will be sooner rather then later.
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