{"id":2066,"date":"2024-01-24T16:44:22","date_gmt":"2024-01-24T16:44:22","guid":{"rendered":"http:\/\/localhost\/dpetkovski\/?p=2066"},"modified":"2024-01-24T16:44:22","modified_gmt":"2024-01-24T16:44:22","slug":"the-death-of-the-gold-standard-the-aftermath-part-2","status":"publish","type":"post","link":"http:\/\/localhost\/dpetkovski\/the-death-of-the-gold-standard-the-aftermath-part-2\/","title":{"rendered":"The Death of the Gold Standard &#8211; The Aftermath (Part 2)"},"content":{"rendered":"<p>In my <a href=\"https:\/\/dpetkovski.com\/the-death-of-the-gold-standard-what-happened-in-1971-part-1\/\">previous post on this topic<\/a>, I wrote about events in recent history that lead to the death of the gold standard.<\/p>\n<p>I&#8217;ll do a short recap and jump into the aftermath &#8211; what&#8217;s been going on after we went off the gold standard.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_60 ez-toc-wrap-center counter-hierarchy ez-toc-counter ez-toc-white ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\" role=\"button\"><label for=\"item-66e419dbf2fcd\" ><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input aria-label=\"Toggle\" aria-label=\"item-66e419dbf2fcd\"  type=\"checkbox\" id=\"item-66e419dbf2fcd\"><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"http:\/\/localhost\/dpetkovski\/the-death-of-the-gold-standard-the-aftermath-part-2\/#The_Gold_Standard_Modern_History\" title=\"The Gold Standard: Modern History\">The Gold Standard: Modern History<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"http:\/\/localhost\/dpetkovski\/the-death-of-the-gold-standard-the-aftermath-part-2\/#Aftermath_The_Death_of_the_Gold_Standard\" title=\"Aftermath: The Death of the Gold Standard\">Aftermath: The Death of the Gold Standard<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"http:\/\/localhost\/dpetkovski\/the-death-of-the-gold-standard-the-aftermath-part-2\/#How_FIAT_Affects_Your_Life\" title=\"How FIAT Affects Your Life\">How FIAT Affects Your Life<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"http:\/\/localhost\/dpetkovski\/the-death-of-the-gold-standard-the-aftermath-part-2\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"The_Gold_Standard_Modern_History\"><\/span>The Gold Standard: Modern History<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>These are the major events worth knowing about in regards to gold as a reserve currency in recent history:<\/p>\n<ol>\n<li>1900 &#8211; <a href=\"https:\/\/www.gold.org\/sites\/default\/files\/documents\/1900mar14.pdf\">The gold standard act<\/a><\/li>\n<li>1933 &#8211; <a href=\"https:\/\/en.wikipedia.org\/wiki\/Executive_Order_6102\">Confiscation of citizens&#8217; gold<\/a><\/li>\n<li>1944 &#8211; <a href=\"https:\/\/en.wikipedia.org\/wiki\/Bretton_Woods_Conference\">Confiscation of world&#8217;s gold reserves<\/a><\/li>\n<li>1971 &#8211; <a href=\"https:\/\/history.state.gov\/milestones\/1969-1976\/nixon-shock\">The Death of the Gold Standard<\/a><\/li>\n<\/ol>\n<p>Again, go read part 1 to understand all of these in more detail:<\/p>\n<p><a href=\"https:\/\/dpetkovski.com\/the-death-of-the-gold-standard-what-happened-in-1971-part-1\/\"><strong>The Death of the Gold Standard (What Happened in 1971)<\/strong><\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Aftermath_The_Death_of_the_Gold_Standard\"><\/span>Aftermath: The Death of the Gold Standard<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Since 1971, the US dollar isn&#8217;t backed by anything.<\/p>\n<p>It&#8217;s not really different than points in a video game.<\/p>\n<p>But what&#8217;s the problem with this if everyone agrees to trade in this currency?<\/p>\n<p><strong>I agree, having a consensus on how to conduct trade isn&#8217;t the actual problem.<\/strong><\/p>\n<p>The <strong>actual problem<\/strong> is that an entity has <strong>full control\u00a0<\/strong>over this currency and its circulating supply. This creates FIAT Money &#8211; a kind of money that&#8217;s made legal tender <em>by decree<\/em>.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"How_FIAT_Affects_Your_Life\"><\/span>How FIAT Affects Your Life<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>As you can probably already see, this <strong>requires\u00a0<\/strong>your government to act in your best interest. You\u00a0<strong>must\u00a0<\/strong>believe that they&#8217;ll do.<\/p>\n<p>I hope you can see how unfair the power disbalance is, putting you at a disadvantage&#8230; You work your whole life, exchanging precious time for units of this currency, while the federal reserve has the ability to simply create more of it.<\/p>\n<p><strong>When more money appears, it dilutes the purchasing power of existing money.<\/strong><\/p>\n<p>So your years of productivity <strong>from the past\u00a0<\/strong>can&#8217;t buy as much in the present. And your wealth <strong>in the future\u00a0<\/strong>will be worth much less than it is today.<\/p>\n<p>But don&#8217;t take my word for it &#8211;\u00a0after 1971, the gold&#8217;s price rose from 40$\/oz to 120$\/oz. Assets&#8217; prices also exploded upwards:<\/p>\n<p><img decoding=\"async\" class=\"alignnone size-full wp-image-2067\" src=\"http:\/\/localhost\/dpetkovski\/wp-content\/uploads\/2024\/01\/cpi-gold-standard.png\" alt=\"gold-standard\" width=\"700\" height=\"491\" \/><\/p>\n<p>But that&#8217;s the wrong way to say it&#8230;<\/p>\n<p>Nothing really got more expensive.<\/p>\n<p><strong>The money got cheaper.<\/strong><\/p>\n<p>People got literally <strong>robbed<\/strong>. And they continue to be up to this day.<\/p>\n<p>You as well.<\/p>\n<p>And nobody needs to explicitly tax you or use any tactics to confiscate your savings &#8211; the increasing of the money supply itself <strong>dilutes your purchasing power year over year<\/strong>.<\/p>\n<p>As a participant in the economic system, the biggest mistake you can do is ignore this.<\/p>\n<p>I won&#8217;t convey it as good as <em>&#8220;WTF Happened in 1971&#8221;<\/em> (<a href=\"https:\/\/wtfhappenedin1971.com\/\">wtfhappenedin1971.com<\/a>). Check them out to see more charts such as this one:<\/p>\n<p><img decoding=\"async\" class=\"alignnone size-full wp-image-2069\" src=\"http:\/\/localhost\/dpetkovski\/wp-content\/uploads\/2024\/01\/produccompensation.png\" alt=\"gold standard\" width=\"784\" height=\"584\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Human history teaches us that <strong>faith in an entity\u00a0<\/strong>will eventually lead to a collapse.<\/p>\n<p>On a more short-term level,\u00a0our purchasing power is the\u00a0<strong>crucial factor\u00a0<\/strong>of how our experience in life will be. Even if you&#8217;re not the materialistic type, this holds true. You&#8217;re a human &#8211; you need calories to survive and shelter to protect yourself.<\/p>\n<p>As long as your well-being<strong>\u00a0<\/strong>is determined by someone that can dilute, control, and confiscate your wealth, <strong>you&#8217;re\u00a0guaranteed\u00a0to suffer<\/strong>.<\/p>\n<p>Read my <a href=\"https:\/\/dpetkovski.com\/how-the-money-printer-makes-you-poor\/\"><em>&#8220;How the Money Printer Makes You Poor&#8221;<\/em><\/a> to understand to which extend you&#8217;re affected.<\/p>\n<p>And then&#8230;<\/p>\n<p>You understand that you need an asset that allows you to fully own it. An asset that can&#8217;t be controlled, manipulated, or tampered with. An asset that&#8217;s resistant to violence, censorship, and confiscation.<\/p>\n<p>And only then you get laser eyes&#8230;<\/p>\n<p>And take <a href=\"https:\/\/dpetkovski.com\/the-inevitability-of-bitcoin\/\">your first step towards liberty<\/a>.<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In my previous post on this topic, I wrote about events in recent history that lead to the death of the gold standard. I&rsquo;ll do a short recap and jump into the aftermath &ndash; what&rsquo;s been going on after we went off the gold standard. The Gold Standard: Modern History These are the major events&nbsp;&hellip;<\/p>\n","protected":false},"author":1,"featured_media":2070,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11,13],"tags":[],"ppma_author":[4],"class_list":["post-2066","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin","category-finance-economics"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The Death of the Gold Standard - The Aftermath (Part 2) - D. Petkovski<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"http:\/\/localhost\/dpetkovski\/the-death-of-the-gold-standard-the-aftermath-part-2\/\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"The Death of the Gold Standard - The Aftermath (Part 2) - D. Petkovski","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"http:\/\/localhost\/dpetkovski\/the-death-of-the-gold-standard-the-aftermath-part-2\/","schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"http:\/\/localhost\/dpetkovski\/the-death-of-the-gold-standard-the-aftermath-part-2\/#article","isPartOf":{"@id":"http:\/\/localhost\/dpetkovski\/the-death-of-the-gold-standard-the-aftermath-part-2\/"},"author":{"name":"D. 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Petkovski","description":"","publisher":{"@id":"http:\/\/localhost\/dpetkovski\/#\/schema\/person\/ce4d9bf1ba43635723c9d1b513b58049"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"http:\/\/localhost\/dpetkovski\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":["Person","Organization"],"@id":"http:\/\/localhost\/dpetkovski\/#\/schema\/person\/ce4d9bf1ba43635723c9d1b513b58049","name":"D. Petkovski","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"http:\/\/localhost\/dpetkovski\/#\/schema\/person\/image\/1375f840626910edc086c1a5da56659f","url":"http:\/\/2.gravatar.com\/avatar\/?s=96&d=mm&r=g","contentUrl":"http:\/\/2.gravatar.com\/avatar\/?s=96&d=mm&r=g","caption":"D. Petkovski"},"logo":{"@id":"http:\/\/localhost\/dpetkovski\/#\/schema\/person\/image\/1375f840626910edc086c1a5da56659f"},"description":"D. Petkovski \ud83d\udcd3 The Author\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 Husband &amp; Father Software Engineer\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0StrengthCentric Bitcoin Hodler\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0\u00a0DeFi Veteran \u00a0 \ud83c\udf0d Everything Enthusiast \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0\ud83d\udd25 Optimist Revolutionizing ideas. Simplifying complexity. Sharing knowledge.","sameAs":["https:\/\/facebook.com\/dpetkovski","https:\/\/www.instagram.com\/strengthcentric\/","https:\/\/twitter.com\/petkovskix"],"url":"http:\/\/localhost\/dpetkovski\/author\/petkovski\/"}]}},"authors":[{"term_id":4,"user_id":1,"is_guest":0,"slug":"petkovski","display_name":"D. Petkovski","avatar_url":"http:\/\/0.gravatar.com\/avatar\/?s=96&d=mm&r=g","user_url":"","last_name":"","first_name":"","description":"<span style=\"font-size: 23px\">D. Petkovski<\/span> <br> <br>\r\n\r\n\ud83d\udcd3 The Author\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0  \u00a0 \u00a0 \u00a0 \u00a0<span class=\"css-1qaijid r-bcqeeo r-qvutc0 r-poiln3\"><img class=\"emoji\" role=\"img\" src=\"https:\/\/s.w.org\/images\/core\/emoji\/14.0.0\/svg\/1f46a.svg\" alt=\"\ud83d\udc6a\" \/> Husband &amp; Father <\/span>\r\n<br>\r\n<span class=\"css-1qaijid r-bcqeeo r-qvutc0 r-poiln3\"><img class=\"emoji\" role=\"img\" src=\"https:\/\/s.w.org\/images\/core\/emoji\/14.0.0\/svg\/1f5a5.svg\" alt=\"\ud83d\udda5\ufe0f\" \/> Software Engineer\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 <\/span><span class=\"css-1qaijid r-bcqeeo r-qvutc0 r-poiln3\"><img class=\"emoji\" role=\"img\" src=\"https:\/\/s.w.org\/images\/core\/emoji\/14.0.0\/svg\/1f4aa.svg\" alt=\"\ud83d\udcaa\" \/><\/span><span class=\"css-1qaijid r-bcqeeo r-qvutc0 r-poiln3\">\u00a0StrengthCentric <\/span>\r\n<br>\r\n<span class=\"r-18u37iz\"><img class=\"r-4qtqp9 r-dflpy8 r-zw8f10 r-10akycc r-h9hxbl r-9cviqr\" src=\"https:\/\/abs.twimg.com\/hashflags\/Bitcoin_evergreen\/Bitcoin_evergreen.png\" alt=\"\" width=\"20\" height=\"20\" \/> <\/span> Bitcoin <span class=\"css-1qaijid r-bcqeeo r-qvutc0 r-poiln3\">Hodler\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0   \u00a0                            \u00a0 \u00a0 \u00a0<\/span><span class=\"css-1qaijid r-bcqeeo r-qvutc0 r-poiln3\"><img class=\"emoji\" role=\"img\" src=\"https:\/\/s.w.org\/images\/core\/emoji\/14.0.0\/svg\/1f4c8.svg\" alt=\"\ud83d\udcc8\" \/><\/span>\u00a0<span class=\"r-18u37iz\">DeFi<\/span><span class=\"css-1qaijid r-bcqeeo r-qvutc0 r-poiln3\"> Veteran <\/span><span class=\"css-1qaijid r-bcqeeo r-qvutc0 r-poiln3\">\u00a0<\/span>\r\n<br>\r\n\ud83c\udf0d Everything Enthusiast              \u00a0 \u00a0 \u00a0 \u00a0   \u00a0 \u00a0 \u00a0              \u00a0   \u00a0\ud83d\udd25 Optimist <br><br>\r\n\r\nRevolutionizing ideas. Simplifying complexity. Sharing knowledge. \r\n"}],"_links":{"self":[{"href":"http:\/\/localhost\/dpetkovski\/wp-json\/wp\/v2\/posts\/2066"}],"collection":[{"href":"http:\/\/localhost\/dpetkovski\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/localhost\/dpetkovski\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/localhost\/dpetkovski\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/localhost\/dpetkovski\/wp-json\/wp\/v2\/comments?post=2066"}],"version-history":[{"count":8,"href":"http:\/\/localhost\/dpetkovski\/wp-json\/wp\/v2\/posts\/2066\/revisions"}],"predecessor-version":[{"id":2134,"href":"http:\/\/localhost\/dpetkovski\/wp-json\/wp\/v2\/posts\/2066\/revisions\/2134"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/localhost\/dpetkovski\/wp-json\/wp\/v2\/media\/2070"}],"wp:attachment":[{"href":"http:\/\/localhost\/dpetkovski\/wp-json\/wp\/v2\/media?parent=2066"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/localhost\/dpetkovski\/wp-json\/wp\/v2\/categories?post=2066"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/localhost\/dpetkovski\/wp-json\/wp\/v2\/tags?post=2066"},{"taxonomy":"author","embeddable":true,"href":"http:\/\/localhost\/dpetkovski\/wp-json\/wp\/v2\/ppma_author?post=2066"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}