Book Review: American Default – The Untold Story of FDR, the Supreme Court, and the Battle over Gold
“The author tells a gripping story exploring justices, politicians and economist. He compares the US action and its impact to Argentina and other counties that have likewise defaulted in debts and depreciated their currency against a pegged or fixed exchange rate. In Argentina’s case it was to the US dollar; in the US case it was to gold. Most interesting of all is the last few chapters. The author asks if the depreciation can happen again. Knowing what we know about public debt on the US, as a % of GNP, and unfunded commitments of welfare programs, it seems that it is only a matter of when, not if. At what point in our future will our debts be too great that the market as a whole will lose faith in the ability of the dollar to provide some price stability compared to other alternative global currencies?”
USAGAOLD note: Or compared to gold. In a fiat money system, like the one under which we function today, currency depreciation is an on-going process rather than a singular event, like Roosevelt’s devaluation. The history of gold since 1971 is testament to its use as a hedge against currency depreciation and provides a window to the future.
Repost from 7-3-2018