What Happened to the American $20 Double Eagle?
This chart also tells you how effective gold was on restraining “policy makers” from over issuing a currency, thus checking the forces of inflation. Note that after Nixon closed the gold window in August 1971 to foreign central banks, US Currency production went into high gear. Also, foreign central banks that used to be able to exchange their excess US dollars for US Gold, now had to exchange their Federal Reserve created dollars for US Treasury Bonds. This is most significant. The current scheme of having US Treasury Bonds (debt) for international monetary reserves allows the US Treasury to spend the same dollar again and again when foreign central banks present the US Treasury their excess US dollars! It is like someone going to a shop, using credit to buy an item and have the merchant gave them both the item and money in the amount of the purchase back! The only thing the merchant has to show for this financial transaction it is yet one more IOU from this peculiar customer. This fa
