Inflation was a whopping 4.5%……
Old Nixon pulled the plug on the Bretton Woods Agreement bringing on the necessity of fiat money diplomacy in order to keep our military intact and in place everywhere on the planet. Unfortunately this requires a lot of money. More than we can generate with a tax base that consists mostly of working stiffs slaving away to buy “consumable” junk with little intrinsic value.
After the political left completely took over the Dem’s party big business began to defend themselves by shipping manufactoring overseas. No taxes, no “liveable” wages, no polution controls,no unions, no nosy government regulators that don’t stay bought, and you get tax free trips abroad.
Of course this requires big time “defense”spending.
Which leads to the Republicans and many old time Dem’s scaring everyone to death that little brown men in sampans or, now days, clutching the Koran driving stolen airplanes, will invade and make everyone quit paying for all this bullshit.
We know who has won the arguement so far. As long as the politicians play by the rules they stay in those cushy jobs . We must have a huge military based all over the globe to save western capitalism. The guys calling the shots have all the money.
Until the Commies take over through debt collecting, that is, heh heh.
Nixon Killed America
Posted by Lew Rockwell on October 24, 2009 06:23 AM
Hans Hoppe makes the point in Salamanca that historians will look back on August 15, 1971, as the beginning of the end for the US empire. That was the day when Dick Nixon—by dictatorial fiat—severed the final tie between the dollar and gold. Nixon thus inaugurated a world monetary system that was unprecedented in the annals of mankind: pure fiat money, with central banks unconstrained in their money printing. It has lasted 38 years, but is clearly in its death throes, just like the US empire