Gold Panic of 1960

Kennedy_Nixon_Debat_(1960)

 

Just for the record on the problem with capital flows and trade, during the Third Presidential Debate between Kennedy & Nixon, the question of capital flows came up and Kennedy actually explained correctly that it was NOT a matter of just trade causing the outflow of gold, it was the fact that the USA was building military bases everywhere and that resulted in an outflow of gold – not trade. This is still a major problem when you play the policeman to the world. This is WHY the gold standard collapsed and this was the FIRST time gold rallied to $40. 8.6 years later, gold began trading on a two-tier system with a private market and a public market in 1968.