On August 15, 1971, the Nixon Administration ‘temporarily’ closed the gold window defaulting on foreign central banks’ ability to redeem US dollars for gold at the official rate of $35 /oz.
Today, gold is $4,376 /oz. representing a 99.2% decline in the value of US dollars vs gold since 1971.
Unknown to many, the drive for disconnecting the dollar from gold was headed not by President Nixon but by David Rockefeller’s former personal assistant and future Federal Reserve Chairman Paul Volcker.
From a previous Substack post As Currency Debasement Squeezes The US, The Age Old Question: Is The Gold All There David Rockefeller? :
“ … On August 15, 1971 President Nixon announced that the US would ‘temporarily’ suspend US dollar gold convertibility at $35 /oz.
Unknown to many today is that America’s default on US dollar gold convertibility in 1971 was organized by future Federal Reserve Chairman Paul Volcker as he states:
“I certainly was a major proponent of suspending gold convertibility, in fact the principal planner.”
Paul Volcker, July 10, 2013 NBER interview with Martin Feldstein
From 1957 until 1962 and then from 1965 until 1969, Paul Volcker worked at Chase Manhattan Bank working as David Rockefeller’s special assistant for the latter 5 years at Chase. This subsequently brings up interesting questions regarding claims about America’s gold reserves. …”
Volker is lauded as having saved the US dollar by raising the Fed Funds Rate to 19% in 1980 when, in reality, Volcker doomed it by pitching the dollar overboard into a sea of assured continual debasement.
With the disconnect of America’s dollar from gold, America’s gold was thereafter statically held by the US Treasury as a strategic asset at three primary vault locations: West Point, NY, Denver, Colorado and at Fort Knox, Kentucky.
Rumors started to arise about America’s vaulted gold and continue to this day with Senator Rand Paul assuring the world that Fort Knox gold was “present and accounted for” after he toured Fort Knox on Monday last week.
Mr. Paul: you’re not helping.
Violence has also apparently been associated with revelations about America’s gold vault holdings.
From the same Substack post quoted above:
“… Many questions have been raised about US vaulted gold reserves. In recent years, former Congressman Dr. Ron Paul has commented that the last time US gold reserves were audited was in 1953 and that if it was all there then it would have been audited more recently.
Many of these gold questions originated in 1974, 3 years after the 1971 gold default.
Mrs. Louise Auchincloss Boyer was a personal assistant to Nelson Rockefeller having worked for the Rockefellers for 40 years and directly for Nelson for 30 years.
Mrs. Boyer came from famous banking circle roots in that her Grandfather ‘Col.’ Edward M. House secured Woodrow Wilson’s nomination for President and was the point man to lobby Congress and secure passing of the Federal Reserve Act in 1913.
On July 1, 1974 an article was published in The National Tattler that claimed David Rockefeller had been sold US gold reserves held in Fort Knox, one of three principal US gold repositories, and that the gold had been removed to Holland.
The alleged source of the story was Mrs. Boyer who two days later had a bad fall - right out of her 10th floor apartment window.
Newspapers across America including the LA Times carried the story first published by the Tattler.
This would have been a very good time to audit America’s gold to put the stories to rest. …”
So here we are decades later with no further clarity on the status of America’s Treasury gold holdings.
In recent months, we have seen Secretary Bessent making statements during the Iran War that the US was “countering problematic alternative payment systems” and, after Iran last week apparently took delivery of gold bullion from the UAE, that the US would apply “… a combination of economic isolation like the world has never seen before and the continued blockade in the Strait of Hormuz that will keep anything from going in or out of the Iranian ports. …”
Everyone knows that if Bessent was talking from a position of strength, he would say nothing and act.
Or the US could make the dollar a unit of gold and end the threat to America.
Instead, Bessent is taking a middle path of jawboning ‘we so bad’ which does nothing but undermine America and its ailing US dollar.
Indebted industrialized countries are seeing bond yields running higher which will derail their fiat currency Ponzi.
A return of gold and silver money is coming and it is inevitable.
Prepare for much higher fiat prices for gold and silver and some geopolitical surprises in the coming weeks and months.
Best regards,
David Jensen
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