A Tale of Two Revolutions

- PLATA.COM - Sep 25, 2020 -

Hugo Salinas Price

In March, 1861, the kind-hearted Czar of Russia, Alexander II, issued a proclamation which liberated the serfs of Russia. Up to that time, the serfs had not been allowed to leave the huge agricultural tracts of land owned by the aristocracy of Russia. The serfs were attached by law, to the place where they were born.

As an unintended consequence of Czar Alexander's generosity, his action prompted millions of ex-serfs to leave the isolation of the Russian vastness and move to the cities, where they became a rootless proletariat.

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In 1945, the United States emerged triumphant from World War II, totally intact. The American economy was vibrant. Gold reserves held by the Federal Reserve, amounted to some 25 or 26 thousand tons.

The War having ended, countries around the world, which had sent their gold to the US for safekeeping, began to repatriate their gold.

While the Europeans and the Japanese were busily rebuilding their countries after the devastation of WW II, the US was intact and its population confident that a bright future lay ahead.

The population was so confident, that it began to object to the smoky industries which polluted the air it breathed, and soon the new government policy was to abolish contamination and substitute imports for the absence of production from smoky industries.

In due course, it was found that national production was not really necessary to the well-being of the American nation. Why produce, when the US could purchase everything it wanted by offering the poor exporters of the world, some of the precious Dollars of the US?

The unforeseen consequence of this policy was the de-industrialization of the US, and with the disappearance of its industry, there disappeared its well-paying jobs. But the disappearance of jobs was accompanied with the disappearance of gold from the Reserves of the US Government, as gold was sent abroad, in payment of increasing Trade Deficits with the rest of the world.



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