WTF Happened in 1864?
Posted May 16, 2023
Imagine you're holding a pure nugget of Alaskan gold.
Its weighty coolness presses into your palm, winking back at you with the same allure that's captivated mankind for millennia.
This humble chunk of metal is far more than just a pretty ornament.
It's the protagonist in a tale of economic upheaval that unfurls on the digital stage of "WTF Happened in 1971," a website that, much like our gold nugget, is far more than it first appears.
Delve into its depths and you'll find a treasure trove of pie charts, line graphs, and compelling arguments suggesting that when the U.S. dollar kicked its gold habit in 1971, it set off an economic earthquake that's still rumbling today.
The puppet masters of government, they argue, armed with the power to conjure money from thin air, have since been pulling the economy's strings with all the finesse of a drunken marionettist.
From 1971, everything -- from wage stagnation to productivity to income inequality -- went to hell in a handbasket. And they have the receipts to prove it.
Here’s the thing…
They’re not wrong. But we only get one piece of the puzzle.
To understand the real roots of our economic woes, we need to rewind back even further.
To 1913… 1907… and even 1864.
In the next couple of days, we’re going to uncover how the echoes of the Civil War reverberated into the financial crisis of 2008 and beyond.
Let's set the dial to 1913 and dive in.
WTF Happened in 1913?
As we’ve described in recent days, 1913 was a game-changer in the grand American financial saga.
It was the year when the U.S. government, perhaps with a bit of a mad scientist's glint in its eye, brought into the world two creations that would fundamentally alter the nation's economic landscape: the Federal Reserve and the income tax.
Now, the Fed is a sort of conductor for the country's economic orchestra, wielding the baton of monetary policy to keep everything in “harmony.” It has the power to adjust interest rates, control the money supply, and generally keep the economy on beat.
(That’s the idea, at least.)
The income tax, on the other hand, is like the ticket sales for our economic orchestra. It provides the government with a steady stream of revenue. Without it, the government's spending power would be severely curtailed.
Fast forward to 1971, and these two elements played starring roles.
With the "closing of the gold window" and the ushering in of the era of fiat currency, the government, armed with the tools of the Federal Reserve and income tax, was able to wield considerable influence over the economy.
Had the events of 1913 not unfolded as they did, the playbook for 1971 would have looked markedly different, and the government's ability to respond to economic challenges would have been akin to bringing a butter knife to a machine gun rally.
In short, there was no 1971 without 1913.
Which is why it’s so important to understand the long tail of history.
Fortunately, we’ve got the inside scoop.
Reminder: Our “Secrets of Jekyll Island” event is TOMORROW at 1 PM ET. If you haven’t already reserved your seat, click here to do so.
That’s when Jim Rickards and Danielle DiMartino Booth take the stage and show you how to prepare for the next Fed-induced crisis.
At this event, we will be giving away gift bags that contain…
- A Half Ounce Of gold
- 5 Ounces of silver
- 5 Gold Backs
- Book 1 – Fed Up, by Danielle DiMartino Booth
- Book 2 – The New Case For Gold, by Jim Rickards
- Book 3 – The Creature From Jekyll Island, by G. Edward Griffin
- Jekyll Island Shirt
But in order to have the chance at a gift bag, you need to be present at the event.
Tomorrow, we’ll hit the rewind button back to 1907… and then all the way back to the Civil War.
And don’t forget to RSVP for FREE right here at this link.