Thursday, November 21, 2013

The real story on the 1934 gold purchase stimulus

The claim by anti gold bugs is that Roosevelt decoupled gold from its dollar peg, then later went on a buying spree, raising the free market price for gold.  Then this, suddenly had the following effect, 1) GDP rose almost 10% within six months. 2) Light truck sales took off in 1934 3) Shoe sales stayed exactly about even 4) Railroads continued and accelerated their decline.  All in six months.

How did a bunch of gold bugs put together such an amazing plot?  And if the gold standard was primitive then why was Roosevelt a gold hoarder and how does hoarding gold help the investment climate?

No, more likely everyone but Roosevelt and his ignorant staff knew the real story, and they hoodwinked Roosevelt into buying a bunch of useless gold.

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