Defending the Truth

http://www.youtube.com/v/C-Cvg9deslg

There was a discussion on another message board concerning the "dollar", and the reluctance of the White House Press Secretary to discuss it in relation to the "price" of oil. I posted this:

------------------------------------------------------------------------
In an article in the Wall Street Journal, 12 December 1979, entitled A Picture of Inflation, Professor Roy W. Jastram, School of Business Administration, University of California, wrote: "In 1965 President Lyndon Johnson had decided to finance the Vietnam war by letting the economy inflate, a tactic with precedents that go back to the currency debasements of the Roman Emperors. Some of the world-wide monetary events that followed over the next 15 years can be traced on the chart where three lines tell the story." The 3 lines showed:

$ price of oil 1965=100
$ price of gold 1965=100
gold price of oil 1965=100

The Arabs, seeing the value of the dollar depreciate in the marketplace, and having no remedy, tied the value of the barrel of oil to gold, which, in 1974, put the barrel of oil "at nearly four times its previous level" in respect to the dollar. By 1979, the gold price of oil was near the same value as it was when President Johnson began his debasement policy, although the dollar price of oil had increased severely. The Arabs were not stupid. They merely placed the value of their product on something that had value in the marketplace. Our government thought that they could pull the wool over their eyes, but it backfired, bigtime, and the Americans paid for it, bigtime.
------------------------------------------------------------------------


-