Saturday, February 28, 2009

winds of change

In 1933 the U.S. government bowed to the inevitable, took us off the gold standard, and devalued the dollar. The depression of the 30's ended in 1934 and stayed quiescent until 1937 when the treasury, buoyed by this success, raised interest rates which moved us back in to a depression. That was relieved by WW II.The huge debt the feds now enjoy can not be repaid but it can be paid off with a debased currency the temptation, and yes, the necessity, will force devalation.


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