Would you buy a used currency from this man?
MarketWatch (8/15 ’11): “Gold-standard debate back, 40 years after Nixon”
LOS ANGELES (MarketWatch) — Exactly 40 years ago Monday, the U.S. dollar formally became a fiat currency, as then-President Richard Nixon “closed the gold window” and ended the greenback’s precious-metal guarantee.
It was about the same time that Johnson and Nixon diverted the unaffordable cost of the Vietnam War onto the newly semi-privatized housing GSEs Fannie Mae and (newly created for the purpose) Freddie Mac. With the costs of the present wars added to their books, the newly semi-unprivatized F&F make a mockery of the debt ceiling debate as the ambiguity of Uncle Sam’s implicit guarantee on agencies goes on with no end in sight. Thank heavens we’re not doing this with real money 😉