By the way, our fiat dollar system has so far cost the U.S. economy $80 TRILLION
LOUIS WOODHILL-FORBES: In 1973, the Nixon administration eliminated the last vestiges of
the Bretton Woods gold standard and transitioned the U.S. to a fiat dollar. Given the mind-boggling cost of this economic error, it is tragic (although not surprising) that Keynesians are currently recommending higher inflation as a solution to the economic woes of both the U.S. and Europe.
The latest detailed numbers from the Bureau of Economic Analysis (BEA) cover the years 1951 – 2010, so let’s use these to examine the economic cost of fiat money.
During the 22 years from 1952 through 1973, our economy grew at a real average rate of 3.81%. Over the subsequent 37 years, U.S. real GDP growth averaged 2.68%. If our economy had grown at the same rate 1974 – 2010 that it did 1952 – 1973, America’s real GDP ($2011) would have been $22.2 trillion in 2010, a full 50% higher than the actual result of $14.8 trillion. Federal revenues in 2010 would have come in at about $4.1 trillion, and the federal budget would have shown a $0.6 trillion surplus instead of a $1.5 trillion deficit, despite our current excessive level of federal spending.
This video explains all this in layman’s terms . . .
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