This Week we did a photo shoot for our new album. The theme as you will all see is us dressed up in various presidents masks after robbing a bank. I always envisioned that we were robbing the federal reserve bank of New York. Stealing the newly printed money Ben Bernanke created this week to bail out Goldman Sachs. Instead we would use the stolen money to help our neighbors pay their mortgages.
All of us picked our various presidents for different reasons. Although Nixon is infamous for many things, I chose him for a different reason than you may think. In 1971 Nixon ended what is known as the Bretton Woods agreement. It eliminated the convertibility of the dollar into gold, making the dollar what it is today. Full fiat money, backed only by the faith of the Federal Government.
This move made the dollar the world reserve currency, and freed the the Fed to print indefinitely. In fact today Bernanke said the Fed was ready to continue its stimulus, if the economy stagnates. QE3 Anyone?
So the next time you hear about Quantitative Easing, thank good old tricky dick for setting the precedent.