Tax & Financial Tips Archive
[Back to Archive]


Date: May 22, 2011
Subject: Losing the Gold Standard – History Revisited

This is
G&G Associates Tax & Financial Consulting

Losing the Gold Standard – History Revisited

Karibu (Welcome) G&G Readers,

It was July 1944 in New Hampshire when the US hosted 44 allied nations, which signed off on the Bretton Woods system of monetary management. These nations agreed to adopt a monetary policy that maintained exchange rates by tethering its currency to the US dollar.

The US dollar was tied to gold at $35 an ounce, and the commitment of the U.S. government to convert dollars into gold at that price made the dollar as good as gold, setting the standard of the US dollar as the world’s reserve currency. Now that’s not to say that this occurred without resistance. Several nations resisted (notably Britton and France), but in a deficit ridden global environment, where the US government held the purse strings, nations that needed to borrow money were coercively greeted with extortion type tactics forcing policy acceptance in return for US dollars.

As countries ratified the Bretton Woods agreement steps were taken to create the IMF and what is now the World Bank. These entities bridge temporary imbalances of global payments. In short, they are the world’s financial firefighters providing nations emergency loans, technical training and monitoring global economic events. In addition, IMF approval was necessary for any change in exchange rates in excess of 1%.

Inevitably market fluctuations developed and arbitrage occurred. US dollars would be redeemed for gold which was of greater value than its pegged price. Several steps were taken to constrain the price of gold.

Internal Sponsorship:

To become a member of the G&G Investment Society newsletter subscription to learn how to take advantage of some of my suggestions so you can protect your wealth and portfolio, send an e-mail to and/or visit our website at and click on the “Products & Services” link and we’ll get you signed up right away.


- 1 year subscription - $99
- 2 year subscription - $189
- Lifetime subscription - $399

*** Membership Guarantee ... If you don't make your back from being a GGIS member by the end of your subscription...we'll refund 100% of your money back. That's how confident we are that this will be one of the best financial moves of your life.

So, Sign up today!!!


To control the price of gold the London Gold Pool was established on November 1, 1961 between eight nations. The theory behind the pool was that spikes in the free market price of gold could be controlled by having a pool of gold to buy or sell on the open market. This however was short lived and in mid-March 1968 a run on gold ensued and the London Gold Pool was dissolved.

Another attempt to control gold pricing occurred in 1967 when the IMF replace the tranche structure set up in 1946 with Special Drawing Rights (SDR). SDR’s were set as equal to one U.S. dollar, but were only suitable for transactions between banks and the IMF. The intent of the SDR system was to prevent nations from buying pegged gold and selling it at the higher free market price. This gave nations a reason to hold dollars by crediting interest, at the same time setting a clear limit to the amount of dollars that could be held.

On March 18, 1968 Congress repealed the 25% gold backing of the dollar and pledged to suspend gold sales to governments that trade gold in the private markets. Accordingly without the constraints of government suppression gold rose much higher than the official dollar price. All attempts to maintain the gold to US dollar relationship collapsed in November 1968 and a new policy attempted to convert the Bretton Woods system into an enforcement mechanism for floating the gold peg.

It was the summer of 1971 when Bretton Woods was diagnosed terminally ill. Germany, France and Switzerland had tendered massive amounts of US dollar reserves for gold. On August 15, 1971, President Nixon, “closed the gold window”, ending convertibility between US dollars and gold. The President and fifteen advisors made that decision without consulting the members of the international monetary system hence the name, Nixon Shock.

In February 1973 the Bretton Woods currency exchange markets closed, after a last-gasp devaluation of the dollar to $44/ounce, and reopened in March in a floating currency regime.

Again, this war for currency domination has already begun. Make sure you’re investing on the winning side. I believe most Americans are in for a huge shock in the next few years. Most will lose a lot of money and those who are prepared are set to make huge gains. The good news is that it is fairly easy and inexpensive to protect yourself, and even make quite a bit on your savings as these events unfold.

To find out how to protect yourself and profit from this information and how make your money work harder than you … sign up today to become a G&G Investment Society (GGIS) today.


When you take a no-risk, trial subscription to my flagship service, called G&G

Investment Society (GGIS), I’ll show you, step-by-step, exactly what to do.

#1. 12 Monthly issues of investment reports sent to your e-mail, called: G&G Investment Society (GGIS) portfolio. The second week of each month, I'll send you my monthly GGIS portfolio. I'll keep you up to date on exactly what's going on regarding the current and future financial crisis, and I'll show you some unusual and incredible ways to make money now and as it all begins to unfold.

#2. Research Report: The 4 Investment Assets You Do NOT Have to Report to the U.S. Government. Desperate governments do incredibly desperate things, so you should make sure you own at least one or two of the valuable assets that you do not have to report to the government. This is completely legal, and vital to getting rich in the coming currency crisis.

#3. Research Report: Mining Royalties. How to claim your share of the World’s most profitable Gold Mines. Sit back and receive payments from Royalties as the price of Precious Metals continues to climb as the Fed and Governments throughout the world continue to print fiat money and not control their deficit spending.

#4. Research Report: Secrets of the Silver Market. I expect silver to soar at least 400% to 500% above today’s price, over the next few years. This thorough report shows you the best ways to buy, hold, and store silver. I’ll show you how to get really cheap silver, straight from the U.S. government… and even a way to store it cheaply in a private Swiss vault, if you’re interested.

#5. Research Report: How to Buy Government Backed Silver for $1.41

#6. Research Report: Urgent Retirement Report. Washington has crippled our country with debt. And now they're making plans to fill that black hole by nationalizing your retirement savings! Your 401(k), TSP, your IRA. Maybe even your money market and bank accounts. They want to grab it all now. And dish it back to you – a little at a time – when you retire. Revealed inside this report… The most insidious plot the government has ever hatched – to nationalize your retirement and STEAL YOUR WEALTH outright.

#7. The G&G e-Newsletter. Also, twice a week, I’ll send you the G&G e-Newsletter giving you my weekly email that details what I think are the most important financial events of the moment.

#8. Subscribers-only access. You’ll also get subscribers-only access to my investment research archives. Right now, there are several other investments I recommend you consider buying immediately.

I hope you agree that’s fair. And I hope you take advantage of these opportunities right away. You will put yourselves among a very small group of Americans who actually come out ahead after this currency crisis unfolds.

If you need a one-on-one consultation to evaluate your financial situation, contact me to setup an appointment.

Until the next time,

Ankh Uja Snb (Life, Health, Strength),

Asar Gary Gray
Tax & Financial Consultant, RFC
G&G Associates
757-251-0174 office
866-361-3872 toll free fax

G&G Associates & G&G Travel are on Facebook, join our fan page.

"Any fool can make something complex, but it takes a genius to make something simple"
Woodie Guthries

P.S. If you are looking to Travel and looking for steep discounted travel, visit, click on the “G&G Travel” link and let your travel planning begin. Let us know where you want to go and we’ll do our best to find you the best deal your money can buy. Become a Fan of G&G Travel on facebook.

LEGAL NOTICE: This work is based on SEC filings, current events, interviews, corporate press releases and what I've learned as a financial consultant. Nothing herein should be considered personalized investment advice. It may contain errors and you shouldn't make any investment decision based solely on what you read here. It's your money and your responsibility.


Tax & Financial Tips Archive
[Back to Archive]