Ron Paul Supporter Peter Schiff On Forbes 2/7/2007
For the the historical record:
FDR took us off the domesitc gold standard a long time ago. That is, he told Americans that they couldn't exchange their dollars for gold anymore because his government had printed money until it was almost worthless. Foreigners who held dollar could still get gold, though. Nixon ended this quasi-gold standard during the inflationary depression of the early 70s by refusing any exchange of dollars for gold.
The economy was collapsing under Nixon due to the expense of the Vietnam War. Those who are stock market bulls, should review the economy of France or the US following the Vietnam War.
“This currency, as we manage it, is a wonderful machine. It performs its office when we issue it. And when we are obligated to issue an excessive quantity, it pays itself off by depreciation.”
The money in question was a six dollar bill. At the beginning of the war, $6 was a private soldiers pay for an entire month. By the end of the war, you couldn’t even pay for a pound of butter with the same amount.