Chapter 64 3. The end of the dollar silver standard

For international bankers, the complete abolition of gold's currency status is already in the overall plan, but solving the silver problem has a higher priority.Due to the huge potential mineral resources of silver, once countries around the world start larger-scale exploration and development under the guidance of market prices, not only will it be difficult to achieve the goal of abolishing gold currency, but they will also fall into a two-front battle with gold and silver.Once the supply of silver soars, the silver certificates are likely to revive and compete with the Federal Reserve bonds again. Since the U.S. government holds the power to issue silver certificates, it is still unclear who will win the battle.If silver bonds prevail, the Fed's survival will be at great risk.

Therefore, the most urgent task for international bankers is to lower the price of silver as much as possible. On the one hand, the world silver mining industry will be in a state of loss or meager profit, thereby delaying the exploration and development of silver mines and reducing the supply; The amount of silver soared. Due to the extremely low price of silver, the research and application of alternative silver materials became unnecessary, thus depleting the remaining silver reserves of the U.S. Treasury Department at the fastest speed.When the Ministry of Finance cannot produce silver, the silver certificates will naturally surrender without a fight, and it is logical to abolish silver's currency status.The key is to buy time.

Kennedy was naturally well aware of this. On the one hand, he stated to international bankers that he could consider abolishing silver's currency status at an appropriate time, but on the other hand, he made other arrangements.Unfortunately, his secretary of the treasury, Douglas J.Dilun was not his confidant. Dilun was born in a big Wall Street banking family. As a republican, he was forced into Kennedy's Democratic cabinet by international bankers. Dilun was responsible for the main financial power to the international bankers.After Tyron took office, his first job was to consume the silver reserves of the Ministry of Finance as quickly as possible.Sure enough, Dilun lived up to expectations, and he dumped a large amount of silver to industrial users at an ultra-low market price of 91 cents an ounce.The American Silver Users Association, established in 1947, echoed Dillon's strong demand to sell the remaining silver deposits (the Treasury Department) to meet the needs of silver users.

The New York Times reported on March 19, 1961: Senators complain about US (Treasury) selling (silver) at low prices Senator Allen.Baibo, today proposed to the Ministry of Finance to re-examine the policy of selling a large amount of silver at a price lower than the international market.The Nevada Democrat was addressing Treasury Secretary Douglas J.Dielon's letter stated that the development of domestic silver mines in the United States had lagged behind consumer demand, and the dumping behavior of the Treasury Department was to control an unrealistic price ceiling.The worldwide shortage of silver can only be solved through the massive development of new production capacity in North and South America.He said: "All this will only be possible when the Treasury Department eases the severe price pressure on the domestic market and neighboring countries."

The New York Times on August 19, 1961 also published this article: Thirteen western Democratic senators, mainly from silver-producing states, submitted a joint letter to President Kennedy today, asking the Treasury Department to immediately stop selling silver.Dumping by the Treasury depresses the price of silver in the international and domestic markets. The New York Times, October 16, 1961: The sale of silver reserves by the Treasury has put a tight lid on the price of the silver market.Industrial users knew they could get ninety-one to ninety-two cents an ounce of silver from the Treasury, so they refused to pay more to new silver producers.

The New York Times, November 29, 1961: Silver producers were delighted to hear yesterday that President Kennedy had ordered the Treasury Department to stop selling non-monetary silver to industry.Industrial users of silver were shocked. The New York Times, November 30, 1961: The price of silver rushed to the highest price in the New York market in 41 years. As President Kennedy announced on Tuesday that he would completely change the silver policy of the US government, he decided to let the market determine the price of silver.The first step is to immediately stop the Treasury dumping silver that does not have to back paper money (silver certificates).

President Kennedy finally made a move, although it was a bit late, because the silver left in the Treasury Department was less than 1.7 billion ounces.However, his decisive measures have made the market silver price send a clear signal to silver manufacturers all over the world. The rise of silver production and the stabilization of the stock of the Ministry of Finance are both predictable things.The silver company's stock skyrocketed. This behavior of Kennedy subversively undermined the plot of international bankers. In April 1963, Federal Reserve Chairman William J.Martin told a congressional hearing: The Federal Reserve Board is convinced that there is no need to use silver in the U.S. monetary system.While some people feel that removing silver from supporting part of our monetary system might devalue the currency, I cannot agree with this view.

According to the general rule, when the silver market gets a clear signal of rising prices, it will take about five years to restart new resource exploration, add new equipment to expand the production scale, and finally increase the total supply. Currency status, thereby preserving the hope of the US government directly issuing currency, the critical moment will be 1966. The commanding heights that Kennedy competed with international bankers was the currency status of silver, and the whole battle was related to whether the U.S. democratically elected government could finally retain the right to issue currency.Once the large supply of silver resumes, Kennedy can join hands with the western silver-producing states to further push forward the legislation on the revaluation of the silver content of the U.S. dollar currency, increase the issuance of silver certificates, and the silver certificates are bound to rise again.

At that time, Presidential Decree No. 11110 signed by Kennedy on June 4, 1963, will immediately become a fatal move against Federal Reserve bonds. It is a pity that international bankers also saw Kennedy's deployment.The president, who is deeply loved by voters, is almost certain to be re-elected in the general election at the end of 1964. If Kennedy is president for another four years, the situation will become unmanageable. Getting rid of Kennedy became the only option. When Vice President Johnson, the favorite of international bankers, took over as the thirty-sixth president of the United States on the plane on the day Kennedy was assassinated, he knew very well what international bankers expected of him, and he could not and would not dare to live up to it. kind of expectation.

In March 1964, shortly after Johnson came to power, he ordered the Treasury to stop the exchange of silver certificates for physical silver, thereby effectively abolishing the issuance of silver certificates.The Ministry of Finance has started again with one.US$29 was used as a support point to sell a large amount of silver reserves to the industry in order to continue to suppress the price of silver, suppress the production motivation of silver producers, and prevent the increase in silver supply. Immediately afterwards, Johnson ordered the dilution of silver coins in June 1965, further reducing silver's status in coin circulation. He said: I want to state absolutely and clearly that these changes (dilute the purity of silver coins) will not affect our The purchasing power of coins.Within the United States, the new silver coins will be exchanged for paper money of equal denomination.

A Wall Street Journal report of June 7, 1966 sarcastically responded: Indeed!But the purchasing power of that famous paper currency has been gradually eroded by the same government's inflationary policies for more than three decades.Because of this, it's no wonder that our currency has completely parted ways with gold and silver. By its own admission, the Fed systematically and scientifically reduces the purchasing power of the dollar by three to four percent each year so that the working class can see that wages are rising. By the summer of 1967, the Treasury had practically no silver left to sell. The great cause of ending silver currency was finally realized in Johnson's hands.