re: What was our country like back before the Gold standard was ended in August 1971?

quote NC Tigah:
The U.S. effectively abandoned the domestic gold standard by removing gold coins and certificates from circulation under FDR. He subsequently devalued the dollar, raising the official USD-gold price from $20.67 to $35 per ounce in 1934. That transitioned the US from a gold specie to a gold bullion system where the dollar was not directly convertible to gold for citizens.

The true pre-FDR gold standard economy was VERY different. Concerns then were price and wage deflation, not inflation.
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Have a look at this thread:

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He subsequently devalued the dollar, raising the official USD-gold price from $20.67 to $35 per ounce in 1934. That transitioned the US from a gold specie to a gold bullion system where the dollar was not directly convertible to gold for citizens.

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He removed the legal right for citizens to possess gold. Then he immediately reset the value of the dollar to gold to $35 which effectively devalued the currency 40%.

Conveniently, the liberty bonds exchangeable for gold that funded WWI and came due between 1933-38 were now payable in dollars only since gold was no longer legal tender.

I think the nuance is that the system didn’t change. US citizens were just excluded from participation. The rest of the world was thrilled with the new exchange rate and happily spent the next three decades selling the US treasury their gold.

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#ronpaulwasrightabouteverymotherfrickingthing

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