Glass
15th August 2011, 01:40 AM
I've noticed a few threads on statements by this guy. I'm sure I've seen a video or heard an interview but I couldn't point the bloke out if I was asked.
Anyway here is a PR on an interview with JR on King World News.
With today being the 40th Anniversary of Nixon taking the US off of the gold standard, King World News interviewed KWN Resident Expert Jim Rickards, Senior Managing Director at Tangent Capital Markets, to get his take on that historic event and where the US is headed forty years later. When asked about Nixon’s move in 1971 Rickards stated, “It is indeed a very significant date in the history of the international monetary system. August 15th, 1971, was the day that Nixon closed the gold window. By the way that’s a very technical term, I mean everyone says Nixon took us off the gold standard, it’s not exactly what he did.
What was going on at the time was that the official price of gold was $35 an ounce. When you were a country and you cashed in dollars at the US Treasury that’s how much gold you got, you got your gold at $35 an ounce. That was how countries settled up with each other.”
“However, there was a private gold market at the time and in the private gold market, it was fluctuating, but it was selling for around $42 an ounce. So the gold window was basically an arbitrage. It meant that if you were France or the Netherlands or a country that had US dollars, you could cash in your dollars and get gold at $35 an ounce. Then you could turn around and sell it in the open market at $42 an ounce and basically make a risk-free profit and that profit was called, ‘The gold window.’ It was just a very simple arbitrage.
So what Nixon did, he closed ‘The gold window’, he said to the rest of the world, basically you can no longer come in with your dollars and get gold because I don’t want you doing that and then selling into the market and making the spread. But he never really took the US off of the gold standard, at least at the time. In fact to this day the gold is still on the books of the US Treasury. There were a couple of international monetary conferences during the course of which gold was revalued up to a little over $42 an ounce and that’s where it sits on the books of the (US) Treasury today. Full PR and link to Audio @ KWN (http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/8/15_Rickards_-_KWN_Special_Release%2C_US_Will_Revalue_Gold_to_%2 47%2C000.html)
dislaimer: I haven't listened yet. $7000 is a big number. I don't think we would get there without some kind of event/decision etc. An intervention if you will.
Anyway here is a PR on an interview with JR on King World News.
With today being the 40th Anniversary of Nixon taking the US off of the gold standard, King World News interviewed KWN Resident Expert Jim Rickards, Senior Managing Director at Tangent Capital Markets, to get his take on that historic event and where the US is headed forty years later. When asked about Nixon’s move in 1971 Rickards stated, “It is indeed a very significant date in the history of the international monetary system. August 15th, 1971, was the day that Nixon closed the gold window. By the way that’s a very technical term, I mean everyone says Nixon took us off the gold standard, it’s not exactly what he did.
What was going on at the time was that the official price of gold was $35 an ounce. When you were a country and you cashed in dollars at the US Treasury that’s how much gold you got, you got your gold at $35 an ounce. That was how countries settled up with each other.”
“However, there was a private gold market at the time and in the private gold market, it was fluctuating, but it was selling for around $42 an ounce. So the gold window was basically an arbitrage. It meant that if you were France or the Netherlands or a country that had US dollars, you could cash in your dollars and get gold at $35 an ounce. Then you could turn around and sell it in the open market at $42 an ounce and basically make a risk-free profit and that profit was called, ‘The gold window.’ It was just a very simple arbitrage.
So what Nixon did, he closed ‘The gold window’, he said to the rest of the world, basically you can no longer come in with your dollars and get gold because I don’t want you doing that and then selling into the market and making the spread. But he never really took the US off of the gold standard, at least at the time. In fact to this day the gold is still on the books of the US Treasury. There were a couple of international monetary conferences during the course of which gold was revalued up to a little over $42 an ounce and that’s where it sits on the books of the (US) Treasury today. Full PR and link to Audio @ KWN (http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/8/15_Rickards_-_KWN_Special_Release%2C_US_Will_Revalue_Gold_to_%2 47%2C000.html)
dislaimer: I haven't listened yet. $7000 is a big number. I don't think we would get there without some kind of event/decision etc. An intervention if you will.