Unlimited imports, the destructive consequence of America’s proud creation of the new monetary order at Bretton Woods in 1944, have finally brought America to its knees as an industrial nation. The creation of jobs in the US now takes place at the level of service as waiters and waitresses in bars and restaurants. The US will remain on its knees until Bretton Woods is totally forgotten and the role of the dollar as world reserve currency is terminated. There is no reason why the US should not be a wealthy, prosperous and contented nation. All it would take is to declare that gold is the only money accepted by the whole world. All it would take is to step down from that high pillar, standing upon which the US continues to insist that the world’s money has to be the dollar – an undefined currency which represents nothing at all. That’s a very bitter pill to swallow. The alternative is for the US to become a huge “Third World” nation, with attendant political instability and constant economic decline, marked by periodic revolutions and perhaps an eventual “balcanization” of the US as it breaks-up into several independent political entities. A return to gold as money would force Americans to begin to produce locally the goods they now purchase from foreigners with endless amounts of dollars.
Hugo Salinas Price beautifully encapsulates the problems the US faces, historically and in the future, unless it adopts a gold backed currency. He references the comments we have made previously about the US becoming a third world nation if it does not adopt a Gold Standard. This is precisely why they will have to find Gold which appears not to exist, despite the claims of what exists in the vaults in Fort Knox, or probably lease Chinese Gold conditionally.