A stellar thread on the consequences of transitioning from a gold-backed economy to a debt-fueled economy in 1971 when Nixon took the U.S. off of the gold standard.
Something not talked about enough is how the year 1971 broke the US economy forever
Here are 20 fascinating charts to show you what I mean
1. Productivity has skyrocketed while salaries have not moved at nearly the same pace.
Nuke safe havens repeatedly so no one thinks they’re safe anymore and catch everybody offsides when oil and bond rates send gold like it’s the late 70s
Every fiat currency in history has died, and behind each corpse you will find a central banker who swore the printing press was the cure. Let me give you the five who did the most damage.
1. Rudolf von Havenstein takes the crown. As president of the Reichsbank from 1908 to 1923, he ran 1,783 printing presses around the clock and called it monetary policy. By November 1923 a single US dollar fetched 4.2 trillion marks. Havenstein died at his desk that month, still convinced he wasn't printing fast enough. Pensioners burned their savings for warmth.
2. Gideon Gono of Zimbabwe earns second place for sheer artistry. From 2003 to 2008 he printed the 100-trillion-dollar note (an actual denomination you can buy on eBay for a few bucks today). Inflation hit 89.7 sextillion percent in November 2008. Gono blamed sanctions, sabotage, and witchcraft. He never once blamed the man holding the press: the central banker's eternal trick.
3. Arthur Burns ran the Federal Reserve from 1970 to 1978 and gave America the gift of stagflation. Nixon wanted easy money for his 1972 reelection, and Burns delivered like a good employee. He flooded the system, then watched inflation climb past 12 percent while the Keynesian textbooks insisted that wasn't supposed to happen alongside unemployment. He manufactured this outcome, then invented excuses (oil shocks, greedy unions, sunspots) to hide it.
4. Alan Greenspan deserves a special place for treason against his own ideas. In 1966 he wrote that gold stands as "a protector of property rights" and that deficit spending is "a scheme for the confiscation of wealth." Then he spent 19 years at the Fed doing the confiscating. He held rates at 1 percent in 2003 and 2004, inflated the housing bubble, and shrugged when it detonated in 2008. A man who knew exactly what he was doing and did it anyway.
5. John Law rounds out the list, patient zero. In 1716 he convinced France to back paper money with shares in the Mississippi Company. The bubble burst in 1720, wiped out the French economy, and delayed central banking in France by decades. Three centuries later his heirs still run the same con with better suits.
On and on we go; when this will stop, no one knows.
@MaryBowdenMD@megynkelly@AlohaEvery1 Everything is an op. I am so jaded now. Nothing changes. It is all such a waste of time. I am done voting. This country is toast.
The year is 1949.
The Nobel Prize in Medicine has just gone to the man who invented the lobotomy. Your doctor suggests one for your sister, who has not been herself since the baby came. It is the most celebrated advance in psychiatry of the age, and he is simply current. By the time the prize curdles into an embarrassment, close to twenty thousand Americans have had the operation, and proportionally more here in Britain.
The year is 1956.
Lay the baby down on his front, the doctor says. So does the most trusted childcare book ever written, the one on every new mother's shelf. On his back he might choke, the reasoning goes. Millions obey. The advice holds for nearly thirty years, long after the evidence has quietly turned, and a generation of cot deaths is counted before anyone thinks to roll the babies over.
The year is 1966.
A bestselling book informs your wife that menopause is a disease, that she is, in the author's word, a castrate, and that a small daily pill will keep her youthful and tolerable to live with. Her doctor agrees. The drug becomes one of the most prescribed in the country. Nobody mentions that the author sat on the payroll of the company that made it. That detail surfaces decades later, in the same year the landmark trial is halted early for raising rates of breast cancer, stroke and clots.
The year is 1979.
Your ulcer is caused by stress and sharp food, the doctor explains. Calm down, drink milk, take the antacid that happens to be the best-selling medicine on earth. Two Australians are about to prove that most ulcers are caused by a bacterium and cured by a fortnight of antibiotics. The profession laughs. One of them eventually drinks a beaker of the stuff to settle the matter. The establishment takes the better part of twenty years to stop laughing. The Nobel lands in 2005.
The year is 1985.
Butter is dangerous, the doctor says. Switch to margarine, it is modern, it is heart-healthy, the experts are united. The spread he nudges you toward is loaded with trans fats, which the next decade will identify as the genuinely dangerous one, and which will eventually be banned outright. The butter goes quietly back in the fridge. No correction is ever printed at the volume of the original warning.
The year is 1992.
There is a pyramid on the surgery wall, and the very same one in your grandchild's classroom. Bread, cereal, rice and pasta form the broad virtuous base, up to eleven servings a day. Fat is exiled to the tiny tip. The chart was reportedly held back a year while the relevant industries had their say. It is wrong at the bottom and wrong at the top.
Now it is today.
Your doctor has new guidelines, new studies, a fresh consensus, delivered with precisely the steady confidence of every guideline above. He believes it, and he has good reason to. So did every doctor in this thread. None of them were villains. Each was sincere, most were kind, and all were certain, reading from a map that somebody else had drawn and handed them. That is the part worth sitting with.
So when the man in the white coat tells you what to eat, what to fear, and what to swallow every morning for the rest of your life, you are allowed to ask. Who paid for the study. What the evidence says beneath the headline. What he was just as certain about thirty years ago, and where that advice sits now.
Then make up your own mind. Call it scepticism, or call it whatever your grandmother called it when she ignored the advert, kept the butter where it was, and lived to ninety-one.
It has outlasted every consensus on this list. It will outlast this one too.
@MaryBowdenMD@TexasChildrens We need independent doctors that take cash. This system is too broken and out of control. Your health goes to the highest bidder.