Comments by "craxd1" (@craxd1) on "Where Does the Federal Government Get All That Money?" video.

  1. It would also do many well to read about what destroyed the 1944 Bretton-Woods Agreement, which threw the US into its ever escalating trade imbalance, with increasing taxes. Do I hear "Great Society" socialism, and increased spending in Vietnam, over Johnson escalating it into a war, anyone? That was also why Nixon had to terminate the convertibility of the US dollar to gold, as soon as he was elected, because we could no longer peg the dollar to it, and he wanted to prune back the new social programs. We had already lost most of the gold, while the left's socialism caused skyrocketing taxes, which caused manufacturing to flood out of the country, or just close its doors. Since then, it's been increasing taxes and regulation by the left, which is why you see Made In China on all the products on the store's shelves. The Nixon Shock: "A negative balance of payments, growing public debt incurred by the Vietnam War and Great Society programs, and monetary inflation by the Federal Reserve caused the dollar to become increasingly overvalued.[41] The drain on US gold reserves culminated with the London Gold Pool collapse in March 1968.[42] By 1970, the U.S. had seen its gold coverage deteriorate from 55% to 22%. This, in the view of neoclassical economists, represented the point where holders of the dollar had lost faith in the ability of the U.S. to cut budget and trade deficits. "In 1971 more and more dollars were being printed in Washington, then being pumped overseas, to pay for government expenditure on the military and social programs. In the first six months of 1971, assets for $22 billion fled the U.S. In response, on 15 August 1971, Nixon issued Executive Order 11615 pursuant to the Economic Stabilization Act of 1970, unilaterally imposing 90-day wage and price controls, a 10% import surcharge, and most importantly "closed the gold window", making the dollar inconvertible to gold directly, except on the open market. Unusually, this decision was made without consulting members of the international monetary system or even his own State Department, and was soon dubbed the Nixon Shock." https://en.wikipedia.org/wiki/Bretton_Woods_system#Nixon_Shock The article is spot on. Read ""Memorandum of discussion, Federal Open Market Committee" (PDF). Federal Reserve." Inflation is caused by too much money being in circulation, and inflation devalues the dollar. The amount of money in circulation is what controls it all.
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