Tags

, , , , , ,

On June 5, 1933, Franklin Delano Roosevelt, the only United States President Howard Taft could defeat in a footrace, took the U.S. off the gold standard. Those gold coins in a colorful fish net purse in one’s Easter Basket, worthless, might as well unwrap them and eat the chocolate inside.

… to hide our gold!

As usual the Great Depression besmirched everything (the prestige of living in a shantytown, Herbert Hoover,  Tom Joad’s chance in life to own a second pair of underwear). This time it was gold. To prevent further runs on banks FDR decided to set gold at fix price and have Americans trade their gold for paper money. In the present day, this will make leprechaun and perpetual presidential candidate Ron Paul angry. It also inflated the money supply meaning more money for transactions and much less gold for hoarding.

The Guffaw thinks that makes sense. Granted the Guffaw’s financial where-with-it-all is limited, Y2K still sounds like an excellent investment plan. What is Scrooge McDuck supposed to swim in now, FDR? Fast forward six years to 1939, Hitler starts invading stuff and the U.S. economy’s problems are solved. Even women have to work. It wasn’t until the 1970’s and the Gerald Ford presidency that Americans were allowed to own gold bullion.

Advertisements