American History of Gold

Did you know that there was NO INFLATION in America between 1791 and 1932?
History of the price of gold and what it means.
Do you want to know who really owns and controls the world?

You’ll find the answer in this article.

Year/ U.S. dollars per fine ounce of gold:

Year(s) Gold Price Notes / Comments
1791 – 1813
1818 – 1833
1839 – 1856
1858 – 1861
1861 – The Civil War begins.
Lincoln prints unfunded "GreenBacks" as currency.
Civil War
Civil War
The Civil War ends.
1879 – 1932
1912 – The unconstitutional Federal Reserve private banking system was established. U.S. paper notes were backed by gold. A citizen could take a Dollar bill and exchange it for gold at an bank, our $ was backed by gold.
Notice that from 1791 to 1932 the price of gold was steady.
Other than the Civil War, the price of gold was $19.37-20.67.
For 141 years the price of gold in the U.S. was unchanged. 
Gold has always been considered a hedge against inflation.
1934 – 1940
Looks like there was virtually no inflation between 1791 and 1932. The Gold Seizure Act of 1933 was passed. This act made it illegal for American citizens to own any gold. All gold had to be turned it to the Federal Reserve banks. It was purchased for $20.67 an ounce by the banks. If you were caught with gold in your posession, you faced a $10,000 fine and 5 years in prison! As soon as the FED had all the gold inthe country, they raised its price to $35 an ounce on the worldmarket. The Federal Reserve thereby devalued the dollars 1943 36.50 (which it had just forced citizens to accept in exchange for their gold) by 41% of its former value. It remained illegal for U.S. citizens to own any gold from1933 to 1974 when this act was abolished. Starting in 1933 our $ was no longer backed or exchangable for gold by U.S. citizens. From 1933 until 1971, our currency was exchangable to foreign investors for gold atthe exchange rate of $35 in paper notes to 1 ounce of to foreigners, our $ was backed by gold.
1952 – 1967
The U.S. dollar is taken completly off the gold standard. It is now backed by nothing to citizens and foreigners alike. OPEC imposes embargo on oil to the U.S.
Look at the price of gold skyrocket through the roof. I wonder how many worthless Dollars the FED was dumping on theworld?
Look at all this inflation and devaluing of our dollar!
How many old people lost their life savings to inflation at this time?
Reagan becomes president.
He starts cutting spending and taxes.
Stock market crash "Black Monday."
The FED starts printing $ to fend off economic depression.
May 20th 2003 The U.S. invades Iraq.
We start borrowing2.5 billion dollars daily from the Chinese to support the war.
The Fed continues to devalue the $ by flooding the marketwith US Dollars.
Worldwide confidence is at a all time low.

1/14/2008 Todays’ gold price – A new world record!




The U.S. Dollar is the standard currency of the world. All oil is priced and paid for with U.S. Dollars. This forces all the countries of the world to have US Dollars to pay for the oil they buy. Being the standard currency of the world has some benefits. When the world thinks you are the most stable currency, they invest in and keep that currency. Foreign investors buy our US treasury bills and invest in the U.S. stock market. This is in a large part how we finance our national debt.

Today, the Dollar is fast losing its reputation of being a stable currency. The Dollar has lost 40% of its value compared to the "Euro" since 2001. The Dollar is at a 30 year record low against most of the currencys in the world. This loss in value has been caused by the Federal Reserve printing trillions of dollars trying to keep the U.S. out of a depression. As more $ is in circulation, the value of $ goes down(inflation). The european "EURO" is emerging as the stongest currency in the World.

So what does this have to do with war with Iran? Iran is the worlds 2nd largest producer of oil. Iran is demanding to be paid for its oil with EUROs. And it is threatening to flood the world market with cheap oil! Why is this a bad thing for the US? By demanding Euros for payment, Iran will deal a huge blow to the USD. The US Dollar will lose its status as the standard currency of the world. Foreign nations will cut back or liquidate its holdings and investmensts in US dollars. In turn, this will cause a huge collapse in the dollars value and will cause a stock market crash as foreign investors liquidate their holdings. We will no longer have the ability to finance our huge national debt.

The U.S. cannot allow Iran to challenge the Dollar as the standard currency of the world. We cannot afford to lose all the foreign investment that is propping up the value of our Dollar. We also cannot allow Iran to sell the world cheap oil. Why? In 1971, the US dollar was taken completely off the gold standard. At that time Henry Kissinger was the secretary of State for the US government. He travelled the world making an arrangement with most oil producing countries. This was the deal: These countries had to agree to price all their oil in U.S. Dollars. They also had to agree to continually buy up some of our national debt. The amount they have to buy is based on their oil sales for the year. At this time, oil wasn’t the big business that it is today. The U.S. was producing most of the oil we need here at home. The Arabs neede the U.S. business and they went along with it.

If Iran starts selling the world cheap oil, other oil producers will have to compete, they will no longer be able to buy as much of our debt. Our debt will be unsupported and will cause instability. If Iran floods the world with cheap oil, the Dollar will collapse. And now you know the rest of the story.

was signed on April 5, 1933 by U.S. President Franklin D. Roosevelt. It prohibited the "hoarding" of privately held gold coins and bullion in the United States. The Order was given under the auspices of the Trading with the Enemy Act of 1917, as recently amended. The government required holders of significant quantities of gold to sell their gold at the prevailing price of $20.67 per ounce. Shortly after this forced sale, the price of gold from the treasury for international transactions was raised to $35 an ounce. The U.S. government thereby devalued the dollars (which it had just forced citizens to accept in exchange for their gold) by 41% of its former value.

The order specifically exempted "customary use in industry, profession or art"–a provision that covered artists, jewelers, dentists, and electricians among others. The order further permitted any person to own up to $100 in gold coins (equivalent to about $1,550 as of 2006).

Section 9 of the Order noted the punishment for failure to comply could include a fine of up to $10,000 or up to ten years in prison. Nevertheless, anecdotal accounts later related that many persons who possessed large amounts of gold simply ignored the order and hid their gold until the Order ceased to be in effect.

The government held the $35 per ounce price until August 15, 1971 when President Richard Nixon announced that the United States would no longer convert dollars to gold at a fixed value, thus abandoning the gold standard.

On the evening August 15, 1971 in New Orleans, Louisiana, James U. Blanchard, III and Evan R. Soule’, Jr. founded the National Committee to Legalize Gold (NCLG) in response to President Nixon’s announcement that the United States was abandoning the gold standard. Over the next several years, the NCLG waged a national campaign to enable American citizens to again own gold in any form. The campaign included repeated national mailings and regional press conferences in which the U.S. Treasury Department was challenged to act when an illegal bar of gold bullion was displayed to the newsmedia. The NCLG hired a 1926 Steerman bi-plane to continuously fly over Washington, D.C. during Nixon’s Inauguration in January 1973 with a banner that read "LEGALIZE GOLD" — an action which received national publicity. In New Orleans in February 1974, the NCLG held the largest (up to that time) privately-sponsored monetary symposium entitled "Investing Towards Freedom". That symposium further galvanized actions in support of proposed Congressional legislation to legalize private ownership of gold in any form. Several decades later, derivatives of that first symposium continue every Fall in New Orleans.

The limitation on gold ownership in the U.S. was repealed after President Gerald Ford signed a bill legalizing private ownership of gold coins, bars and certificates by an act of Congress codified in Pub.L. 93-373 [1] [2] which went into effect December 31, 1974. P.L. 93-373 does not repeal the Gold Clause Resolution of 1933, which makes unlawful any contracts which specify payment in a fixed amount of money or a fixed amount of gold. That is, contracts are unenforceable if they use gold monetarily rather than as a commodity of trade.

The monetary system of the United States at the time of the Depression could not sustain inflation very long because the country was on a gold standard. If people sensed that the government was printing too many paper dollars, by law they could redeem those dollars from the government’s store of gold. Moreover, gold coins circulated along with silver dollars, half-dollars, quarters, and dimes.

If people were exchanging their dollars for gold, then the government’s own gold supply would be diminished. Since the gold standard included requirements that the country’s money supply have at least a 40 percent gold backing, a drain on gold reserves would have forced the government to stop printing so many dollars. Therefore, the plans of the New Dealers ran headlong into the reality of the gold standard and its check on inflation.

Thus, early in his presidency, on April 5, 1933, Roosevelt signed Executive Order 6102, which ordered people to turn in their gold to the government at payment of $20.67 per ounce. While there were some exceptions for dental use, jewelry, and artists and others who used gold in their jobs, most people were not covered. (Individuals could hold up to $100 in gold coins, but the government confiscated the rest.) Furthermore, the president’s order nullified all private contracts that called for payment in gold, something that led Sen. Carter Glass of Virginia to declare that the whole thing was “dishonor.”

Roosevelt based his order on the 1917 Trading with the Enemy Act, which gave the president the power to prevent people from “hoarding gold” during a time of war. Of course, the United States was not at war in 1933, but Roosevelt claimed that it was a “national emergency” and Congress and the courts meekly bowed to the executive.

In earlier times, such an order would have been met with outrage, as freedom-loving Americans would have rebelled against such a confiscatory order from Washington. Certainly, no president before the Progressive Era would have ordered such action for fear of impeachment or being voted out of office at the next election. However, by the time Roosevelt took office in 1933, the courts already had upheld government restrictions on freedom of speech (especially during World War I) and Congress had begun the unconstitutional delegation of some of its lawmaking powers to the executive branch.

Furthermore, given the economic calamity that prevailed when Roosevelt issued EO 6102, many Americans had become convinced that economic and political freedom meant freedom to starve and were willing to give the president whatever he wanted.

Roosevelt attempted to put “teeth” in his order by means of Section 9 of the order, which said that anyone who refused to comply could be fined as much as $10,000 or be sentenced to a maximum of 10 years in prison. (Most Americans did not resist, although some simply hid their gold until the order was repealed 41 years later.) To understand the magnitude of Roosevelt’s actions against individuals, he was threatening serious fines and prison terms against anyone who held on to what historically had been the money of the American people.

Although Roosevelt made it illegal for Americans to redeem their dollars for gold, he also realized that he could not make the same threats against people from other countries. Therefore, representatives of foreign governments still could trade in their dollars for gold, although shortly after issuing his order, Roosevelt increased the price to $35 an ounce. However, given the state of international trade at the time, foreign holdings of dollars were relatively small, something that would not be the case a half century later.

The small burst of inflation generated by Roosevelt’s move did create a bit of an economic boom, as usually occurs in the early stages of inflation, although unemployment remained at about 15 percent. However, Roosevelt’s twin pillars of what historians call the First New Deal were causing havoc among some producers and entrepreneurs, who realized that the NIRA and AAA were stifling entrepreneurship and productivity. In 1935, the U.S. Supreme Court declared both the NIRA and AAA unconstitutional, but by then the New Dealers had shifted from endorsing business cartels to promoting labor cartels through the unionization of workers.

When the U.S. Supreme Court in 1937 upheld the 1935 Fair Labor Standards Act (or Wagner Act), the inflation-induced “boom” ended soon afterward and the economy tumbled into a recession within a depression, a first for the U.S. economy, as unemployment climbed to nearly 20 percent. But while Roosevelt’s seizure of privately held American gold failed to regenerate the economy, it did lay the foundation for further economic deterioration.

The 1971 collapse of the dollar
Following the Bretton Woods agreement of 1944, currencies were fixed against each other and the dollar still could be redeemed by foreign governments at $35 an ounce. For about 20 years after World War II ended, the arrangement seemed to work. However, in order to pay for the vast expansion of government welfare programs associated with Lyndon Johnson’s Great Society and the escalating Vietnam War, the Federal Reserve System aggressively expanded the supply of money, which not only depreciated the currency at home but also flooded the rest of the world with dollars.

France’s government, under Charles de Gaulle, recognized the situation at hand and began to redeem its dollars in U.S. gold, which was stuck at its 1933 price. While U.S. representatives at first denied there was a problem, by mid-1971 U.S. gold reserves were disappearing quickly, leading Richard Nixon to close the gold window and impose wage and price controls. While some price controls were lifted within the year, oil and gasoline controls remained through the decade, causing untold havoc in the economy.

The presidency of Franklin Roosevelt was characterized by arrogance and outright fraud. Unfortunately, much of the Roosevelt legacy stands. Many historians and economists continue to insist that his economic programs “saved capitalism” when, in fact, they were based on confiscation of property and on the false notion that inflation is the source of prosperity.

Today, the U.S. monetary system is adrift in inflated dollars. Gold prices at this writing are nearly $650 an ounce and the dollar has been falling against other international currencies. The only constraints on the Federal Reserve System’s determination to continue this inflation are political, and the vast majority of politicians and Americans have come to believe that the Fed creates prosperity when it creates new dollars.

"I believe that banking institutions are more dangerous than standing armies….if the American people ever allow private banks to control the issue of currency….first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of their property until their children wake up homeless on the continent their fathers conquered."

– Thomas Jefferson 1743-1826

The Atlantic Richfield Oil Company heritage dates to 1866; it became part of the Standard Oil of New York(SONY)trust in 1874(owned by the Rockefellers). Today, it is a subsidary of British Petrolium(BP). Notice how all the old Amaco Standard(Standard Oil) gas station are now BP stations?


Anyone who understands "The Fedreral Reserve System," knows that this private bank was owned and created by Rockefeller, Rothschild, J.P morgan and Wartburg. The Federal Reserve Bank is not a publicly traded corporation and is therefore not required by the Securities and Exchange Commission to publish a list of its shareholders! It’s impossible to currently research who owns our money system! The U.S. taxpayers spend 1 trillion dollars a year in interst to the privately owned, for profit banking cartel know as the "Federal Reserve."

The Federal Reseve…The worst legislative crime of the ages is perpetrated by this banking bill…The banks have been granted the special privilege of distributing the money, and they charge as much as they wish…This is the strangest, most dangerous advantage ever placed in the hands of a special privilege class by any Government that ever existed. The system is private…There should be no legal tender other than that issued by the government…The People are the Government. Therefore the Government should, as the Constitution provides, regulate the value of money." (Congressional Record, 1913-12-22)

Many contend that the Federal Reserve Act is unconstitutional. Congressman Ron Paul, for example, argues that: "The United States Constitution grants to Congress the authority to coin money and regulate the value of the currency. The Constitution does not give Congress the authority to delegate control over monetary policy to a central bank. Furthermore, the Constitution certainly does not empower the federal government to erode the American standard of living via an inflationary monetary policy."


The Americans could live with Saddam until he started selling oil for euros instead of U.S. dollars. Then the Europeans could live with him

At the end of World War II, the USA was the world’s biggest national economy and the only great power whose industrial base was not damaged by the war. America’s huge productive capacity made the U.S. dollar the easiest currency to spend in the global market and consequently the most acceptable foreign currency outside the USA. By the late 1950s, however, the recovery of Europe and Japan caused a suspicion that there were too many dollars in circulation. Central bankers began to exchange their dollars for gold under the terms of the 1944 Bretton Woods treaty, whereby the currencies of participating countries were backed by gold. In 1971, in response to the depletion of U.S. gold reserves, President Richard Nixon announced that the dollar would no longer be redeemable for gold. So the system of fixed exchange rates via gold-backing fell apart. It was thought that the dollar would decline in value as traders relied less on the dollar and more on the emerging European and Asian currencies. But support for the dollar came from an unlikely quarter.


In 1973, the Organization of Petroleum Exporting Countries (OPEC) quadrupled the price of oil but continued to accept only U.S. dollars in payment, so that demand for dollars soared. From then on, the dollar was effectively backed by oil instead of gold — and the U.S. government didn’t even have to own the oil!

Because dollars can buy oil, exporters in countries that need to import oil — i.e. most developed countries — will accept dollars for their exports. Hence everyone who needs to buy from those exporters will accept dollars as payment for other things, and so on. To pay their bills, importers must have reserves of dollars. To prop up their currencies against speculative attacks, the central banks of all countries must have reserves of dollars. To get capital, poor countries must borrow dollars, and to service these debts they must export goods to obtain more dollars. About 2/3 of all currency reserves, more than 4/5 of all currency transactions, more than half of the world’s exports, and all loans from the International Monetary Fund (IMF) are denominated in dollars. As these things create demand for the dollar and shore up its value, oil exporters are the more willing to accept payment in dollars. So the process is self-reinforcing; it’s called "dollar hegemony".

In the late 1970s, falling oil prices reduced demand for the dollar while mounting third-world debt reduced confidence in dollar-denominated deposits. The U.S. Federal Reserve defended the dollar by raising interest rates to record levels. Heavily indebted poor countries are still paying for that episode. But the second oil-price shock (1979-80) restored demand for the dollar.

So America can export dollars, which cost nothing to produce, and receive real goods and services in return. When those dollars eventually find their way into foreign reserves, they can be invested only in American assets. This creates a demand for U.S. treasury bills without high interest rates, and inflates the U.S. property market and stock market — to the benefit of current owners of land and shares, and to the detriment of the working poor who live in caravans ("trailers") on the fringes of American cities because they do not "earn" enough to buy or rent a home. Ordinary home owners may think they benefit from rising property values; but in fact, every time an owner moves to a new home, the higher sale price of the old home is offset by the higher purchase price of the new one. The real winners are the big investors.

But this continuous inflow of foreign investment (on the "capital account") is needed to balance America’s mammoth trade deficit (on the "current account"). America’s imports now exceed its exports by almost 50%, or 5% of GDP. Its net foreign debt is more than a quarter of annual GDP, and its public debt is about 60% of annual GDP.

The main threat to the global hegemony of a single currency is the desire for diversity in investment. Dollar hegemony was secured by the size of the U.S. economy and the pricing of oil in dollars. But if a second currency were allowed into the oil market, it would soon become a general-purpose trading and reserve currency, especially if it were legal tender in an economy comparable in size to the USA.

In 1999, eleven member states of the European Union (EU) adopted the euro as a common accounting currency. Greece joined the Euro Zone a year later. On January 1, 2002, the twelve countries withdrew their old money from circulation, completing the biggest currency reform in history.

The Euro Zone already has a bigger share of world trade than the USA. In particular, it imports more oil than the USA and is the main trading partner of the Middle East. It offers higher interest rates than the USA, but does not have a huge foreign debt or trade deficit. Member states must accept tight constraints on budget deficits, and the European Central Bank has an exceptionally strong mandate to preserve the purchasing power of its currency. These things inspire confidence in the euro. In 2002, the central banks of Russia, China, Taiwan and Canada converted some of their reserves from dollars to euros. The strength of the euro also encourages expansion of the EU and puts pressure on current members Denmark, Sweden and the U.K. to join the Euro Zone. In December 2002, ten new countries were accepted for EU membership with effect from May 2004. This will create a common market of 450 million people, which will buy more than half of OPEC’s oil.

So the only argument for preferring dollars to euros is that dollars can buy oil. As that argument does not affect oil exporters, it would make sense for OPEC members to convert most of their reserves to euros by mid 2004. Then if they were to price their oil in euros, at least for exports to the Euro Zone, they would increase global demand for the euro, causing a handsome increase in the value of their new euro reserves. Similar arguments apply to non-OPEC oil exporters such as Norway and Russia.

If the euro becomes a global currency to rival the dollar, central banks and other traders will sell down their dollar reserves, causing the value of the dollar to plummet (and devaluing the debts of poor countries at the expense of their creditors). The unwanted dollars will be withdrawn from the U.S. asset market and will flood the market for U.S. goods and services. The U.S. property market will deflate (so that poor Americans can more easily afford homes, at the expense of current property owners). The U.S. stock market, being more volatile than the property market, will fall faster. The real prices of property and shares will fall further than the dollar prices because the dollar itself will be devalued. The additional dollars chasing U.S. goods and services will fuel domestic inflation. They will also increase exports, reducing the current account deficit to compensate for the slowdown of foreign investment, and reducing domestic living standards as measured by consumption of goods and services. Inevitably, the Federal Reserve will raise interest rates in order to reduce the inflation, support the dollar, attract more foreign investment, and delay the day of reckoning on which America will have to export real goods and services to pay for its imports, service its foreign debt, and accumulate reserves of euros. But that will not rescue the landowners and shareholders and bond holders, because their assets can be devalued not only by reduced foreign investment, but also by higher interest rates.

And of course the price of oil in U.S. dollars will increase; but this time there will be no compensating increase in the global demand for dollars.

The first OPEC member to show serious disloyalty to the dollar was Iran, which has expressed interest in the euro since 1999. In January 2002, George W. Bush named Iran in his "axis of evil", provoking a wave of anti-American demonstrations reminiscent of the Khomeini era, and undoubtedly setting back the political and religious liberalization of that country. Undeterred, Iran converted most of its currency reserves to euros during 2002, and a proposal to price Iran’s oil in euros has been submitted to the central bank and the parliament.

Let us see whether the Americans find an excuse to destabilize Iran’s toddling democracy in favor of a dictatorship that just happens to prefer dollars to euros.

The second offender was Venezuela. In 2000, Venezuela’s President Hugo Chavez convened a conference on the future of fossil fuels and renewable energy. The report of the conference, delivered by Chavez to the OPEC summit in September 2000, recommended that OPEC set up a computerized barter system so that members could trade oil for goods and services without the use of dollars or any other currency. The chief beneficiaries would be OPEC’s poorer customers, who did not have large currency reserves. Chavez made 13 barter deals. In one of them, Cuba provided health services in Venezuelan villages.

In April 2002 there was a coup against the twice-elected President Chavez. The coup was welcomed by the Bush administration and by editorials in numerous American newspapers, but collapsed after two days, leaving evidence that the U.S. administration was behind it [1].

The third and most blatant offender was Iraq. In October 2000, Iraq persuaded the United Nations to allow Iraqi oil to be sold for euros instead of dollars, with effect from November 6. Iraq then converted its entire $10 billion "oil for food" reserve fund from dollars to euros. These events went unreported in the U.S. media.

Given America’s record of toppling elected governments whose policies it didn’t like (as in Chile, Nicaragua, and almost Venezuela), it is hard to believe that the motives of Operation Iraqi Freedom were as pure as its name suggested, especially considering how cheap "freedom" has become in U.S. domestic politics [see the Appendix]. The test of America’s sincerity will be whether the new regime in Iraq continues to sell oil for euros.

Having occupied Iraq, America then stepped up its rhetoric against neighboring Syria. Coincidentally, Syria would like to sell oil for euros because most of its imports are purchased with euros.

If this oil-currency-war theory is a delusion, the U.S. administration can easily discredit it — by declaring that the USA has no objection if oil exports to the Euro Zone are denominated in euros.

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