FDR's 1933 Gold Confiscation was, in fact, a bailout of the Federal Reserve Bank

dcarr

There is some interesting data that I tabulated and analyzed as proof, and published in this article:
http://www.moonlightmint.com/bailout.htm

Quote:
“At the very minimum, Federal Reserve Notes to the tune of
20,000 metric tons of gold were ‘circulating naked’ in 1933.”

roadrunner

Thanks for the research and link.

This reference tells a similar story.

Gold Policy in the 1930's - money mismanagement at its finest

With all of the new gold coming into the system, the FOMC did not need to use its newly legislated powers. From 1933 to 1936, the M2 money stock grew at annual rates of 9.5, 14.0, and 13.0 percent. In fact, so much gold was coming into the Fed-Treasury’s coffers that sentiment in both the Fed and Treasury leaned toward monetary restriction.

roadrunner

secondrepublic

very interesting analysis - thanks for posting

OPA

Excellent expose history lesson.

EagleEye

Thanks for the well researched article. Mismanagement of the their new toy, the FED, in the 1920's created the problems in the 1930's. The Great Depression was a world-wide event, so it illustrates how the actions of a few can have implications all over. It just goes to show how too loose a monetary policy can be destructive down the road. Just like the 2000-2008 housing bubble. The tools to fix the resulting problems in both cases (1920's and 2000's) can be viewed on their own to be worse that the problem itself. But what if nothing was done, both then and now? What could FDR have done differently with the set of problems presented. I'm sure in the meetings leading up to his Inauguration, he was convinced there was no other solution.

And you can't undo these actions without severe hardship. Hardship that the people would certainly revolt over. The trouble then and now it that you can't put the toothpaste back in the tube.

dcarr

<< <i>Thanks for the well researched article. Mismanagement of the their new toy, the FED, in the 1920's created the problems in the 1930's. The Great Depression was a world-wide event, so it illustrates how the actions of a few can have implications all over. It just goes to show how too loose a monetary policy can be destructive down the road. Just like the 2000-2008 housing bubble. The tools to fix the resulting problems in both cases (1920's and 2000's) can be viewed on their own to be worse that the problem itself. But what if nothing was done, both then and now? What could FDR have done differently with the set of problems presented. I'm sure in the meetings leading up to his Inauguration, he was convinced there was no other solution.

And you can't undo these actions without severe hardship. Hardship that the people would certainly revolt over. The trouble then and now it that you can't put the toothpaste back in the tube. >>



In 1837 Andrew Jackson killed "The Bank of the United States", and that was the right thing to do.

In 1933 FDR should have nationalized the Federal Reserve. Many of his policies were socialistic, but he gave the Federal Reserve a free pass.