Gold, inflation, and capital flight - How the 1970's economic crisis relates to today

Up until 1971, of course, Americans couldn't own gold at that point, but, Foreign governments were allowed to exchange their dollars that they had for gold from the us treasury at a fixed price of $35 an ounce. Then Nixon raised the price to $42.22 an ounce arbitrary, completely arbitrary numbers.

And then he cut that off, closed the gold window. So right now the U S dollar. Is an I owe you nothing. I mean, it's worth something. If you go down to the Chevy dealership and buy a car. Yeah. Okay. But there's no guarantee as to what kind of a Chevy, how many Chevy's you can buy for a million dollars.
The US is turning into a third world country where at some point foreigners will not want to accept dollars.

The major export of the US for about 40 years has not been computers or Boeings or wheat. Our major export has been dollars and it's resulted in an artificially high standard of living, uh, because the dollar has become the international currency.

I mean, years ago it was true. And it's still true today. I'm sure that there are more a hundred dollar bills floating around in Moscow, alone than there were in the whole United States. I mean, that was the meme that came out. Is it true? I don't know, but it could be true. Um, so our major export for many, many years has been dollars.

Anybody in an African or Middle Eastern or almost any Asian country or any South American country. They all preferred dollars to their local worthless currency. So of course it's been a great scam for us. We send them dollars. Yeah, they send us Mercedes and Sony's, that's a great trade in the short run.

But now, and once again, nobody knows what the number is. Probably something on the order of 20 trillion. I've heard 40 trillion. No. So this is guesswork. You take the annual balance of trade deficit, which averages 600, $800 billion a. Not counting illegal trade for things like cocaine and so forth, which is huge and added up over 40 years.

So what's going to happen when, with the U S currently, uh, creating trillions of new dollars every year at some point. Retail prices are going to start skyrocketing. They're going to start moving up, not just by percent with 10%, 15% per year. Now these people are going to want to get rid of dollars.

Okay. Uh, and ultimately, so somebody, somebody in Mexico. My walk dollars now for good reasons, but he doesn't have to take dollars. He has to take pesos. That's the law and all of these countries, you take the national currency and it's printed by your national government, but there's no law that says anybody has to take dollars except for Americans in the U S so at some point, these dollars are going to start flooding back into the U S.

20 billion, 40 billion that are outside the U S in exchange for what? Well in exchange for everything, everything that that's for sale stock certificates, land titles, goods of all types. So we get the dollars and they got the real goods back. It's really going to impoverish the U S it's a scary thought because the whole world.

Financial system is structured around us dollars at this point. So the U S government destroys the U S dollar. It's not just going to be chaos in this country. It's going to be chaos because of this country, all around the world. It's scary.