So the main stream media just spent the last 6 months scaring the crap out of everyone in regard to the “debt ceiling crisis”, stating over and over, “for the first time in history the US could default on its debts”. As the title of today’s show indicates once again the main stream is not just wrong but completely incompetent.
To gain a better perspective of these events and our current financial mess I have enlisted Tom Kowitz of the Baldy and the Blonde Show from WGSO 990 AM in New Orleans to come on TSP and help us gain a greater understanding past defaults and the nation’s economic future. If you often feel “money isn’t a survival topic”, you need to listen to this show, it will put it in a much more clear perspective for you.
Join me today as we discuss…
- A bit on our current political nonsense about the debt ceiling
- Why a AA+ rating of US credit is a joke
- The history of currency changes and defaults in the last 100 years
- 1913 Federal Reserve Act (from hell)
- 1933 Confiscation of gold, and the federal government’s refusal to honor the gold clause in its bond contracts (this was a full-on default); Federal Reserve Notes now redeemable for silver instead of gold.
- 1945 Bretton Woods Agreement established the dollar as the world’s reserve currency and the only currency convertible into gold (which means massive amounts of U.S. dollars had to be exported, which is precisely what happened in the few years after WWII)
- 1965 The Coinage Act of 1965 eliminated silver from US coins (except half dollars, where silver content was cut from 90 percent to 40 percent) and gave us the junk we’re using today. (Default on all coinage)
- 1968 Silver Certificates no longer redeemable for silver (another default)
- 1969 Special Drawing Rights created by the IMF (1 SDR = 1 US dollar). SDR’s were created in part because of the concern that the U.S. wasn’t circulating enough dollars, and without a LOT of dollars out there, the dollar could not serve as the reserve currency.
- 1971 Nixon closes the gold window; foreign central banks can no longer convert dollars into gold. This seems to me to be another default. There were way too many dollars out there. (Full on default by the US to the entire world)
- 1978 IMF establishes a goal of making the SDR the principal reserve asset in the international monetary system. They straight-up announced their plan to put the entire world on a new monetary system.
Additional Resources for Today’s Show
- TSP Gear Shop
- Join Our Forum
- Ready Made Resources – (sponsor of the day)
- Bulk Ammo – (sponsor of the day)
- Members Support Brigade
- The Real Truth About Money
- Baldy and the Blonde
- WGSO 990 AM – (Tom and Michelle are on Wednesday’s from 5-6PM)
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