Richard Russell – Global Shock & Massive Wealth Destruction

Tuesday, December 24, 2013
By Paul Martin

KingWorldNews.com
December 24, 2013

With continued chaos around the world and uncertainty in global markets, today KWN is publishing an incredibly powerful piece that was written by a 60-year market veteran. The Godfather of newsletter writers, Richard Russell, discusses a coming event that will shock the world and create massive wealth destruction.

Richard Russell: “In the year 1913, Congress gave the Federal Reserve the right to create and control US money. The Fed guards this power ferociously. The Fed prefers inflation, since it can easily control the rate of inflation. But the Fed is deadly afraid of deflation, since deflation can get out of control of the Fed.

Since 1980, the rate of debt has risen far past the growth in GDP. At some level, debt exerts a deflationary effect on the economy (GDP). We are past that point now, and deflationary pressures are bearing down on the US, this despite all the Fed’s money creation and manipulation of interest rates.

The question — How to reinflate the US economy? There is one method that was used in 1934 by the Roosevelt administration. That method is to devalue the currency against gold, the standard. This method was used by the US three times before. In 1934 the Roosevelt administration overnight re-set the price of gold from $20.67 dollars an ounce to $35 dollars per ounce.

Later, in 1971, the Smithsonian Agreement was reached which devalued the dollar from $35 an ounce to $38 an ounce. Again, and few people know this, in 1973 the US again unilaterally re-set the price of gold from $38 dollars an ounce to $42.22 dollars an ounce.

The Rest…HERE

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