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3-minute Read

In 1971, then-President Nixon set off a chain reaction that reshaped the U.S. Dollar… 

cutting its ties to gold and causing a financial fallout that is still felt by many Americans to this day. As the Federal Reserve battles inflation through unprecedented rate hikes, unintended consequences are emerging, including bank failures. The fallout is felt by Americans struggling to make ends meet. This three-minute read explores the historical events, exposes the Fed’s impact, and provides a roadmap to hedge your wealth in the face of a looming financial overhaul. 

On August 15, 1971, President Richard Nixon made a critical decision that changed the course of the U.S. Dollar. In a speech, he disconnected the U.S. Dollar from its tie to gold, impacting the savings and earnings of every American. The U.S. had mismanaged its position as the world’s primary currency by running persistent budget deficits. Nixon’s decision led to a sharp decline in the dollar’s value, resulting in a decade of rampant inflation. Fast forward to today, and we’re experiencing similar economic challenges. Inflation spiked last year, reaching 9.1%, the highest in over 4 decades, and currently running at 3.7%, surpassing the Federal Reserve’s 2% target rate. The Fed responded with the fastest rate hike campaign in history, raising the benchmark federal funds rate from 0.25% to 5.5% and increasing but currently “postponed”! 

Graph showing a downward spike

However, this policy has unintended consequences, such as recent bank failures. As the financial system faces turmoil, the Fed must create more money to stabilize it, leading to potential risks. In times of economic uncertainty, significant wealth transfers often occur, and the next decade could witness the most substantial wealth transfer in American history. It’s imperative to make informed decisions to survive and thrive in this changing landscape. Nixon’s decision not only caused the dollar to plummet but also turned it into a “fiat” currency, meaning it is being backed by nothing. This move allowed the Federal Reserve to print more money rapidly, contributing to the current economic challenges. 

Facade on the Federal Reserve Building in Washington DC

The U.S. government has rapidly debased the currency, with the Fed’s balance sheet growing from $4 trillion to $8 trillion in just over a year. As history suggests, we can expect more money printing in the future. Nearly 40% of American adults are finding it challenging to make ends meet. Middle-class families report falling behind the cost of living, and many Americans live paycheck-to-paycheck. Looking ahead, the Fed is laying the groundwork for a significant overhaul of the financial system, impacting the savings of millions of Americans.

Federal Reserve: The Dollar's Biggest ThreatHere is Your Answer

Chain of fine gold as financial commodities stock exchange market in background blurred of bill of US dollars 3D concept

At Reagan Gold Group, we assist Americans to obtain Physical Gold and Silver assets that support a diversified financial portfolio, act as a hedge against inflation, and support people through tough economic times. It is not too late to make a tangible investment in these precious metals that have historical value passed from generation to generation. Book a FREE consultation to get started. This is the time for all Americans to intervene and take ownership of their own wealth with no interventions. Contact Reagan Gold Group today and find out more about the preservation of your wealth.

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