The Gold Commission Finds That The US Government Owns No Gold

1981

USA

President Ronald Reagan proposes a North American common market.

President Ronald Reagan was looking into re-introducing the Gold Standard. He appointed a group called The Gold Commission. They found that the US Treasury owned no gold at all. The found that all the Fort Knox gold remaining is now being held as collateral by the Federal Reserve against the national debt.

Congress passed a bill in September allowing S&Ls to sell their mortgage loans and use the cash generated to seek better returns; the losses created by the sales were to be amortized over the life of the loan and any losses could also be offset against taxes paid over the preceding ten years.

1982

USA

The "Early 1980s Recession" was caused by tight monetary policy in the U.S. to control inflation and sharp correction to overproduction of the previous decade, which had been masked by inflation. This recession lasted from 1982 until 1983.

Senator Jake Garn of Utah, (who received huge contributions from the S&L industry), co-authored the Garn-St. Germain Act, signed into law by Ronald Reagan in October. Key elements of the bill were allowing the Savings and Loans to offer money market funds and allow up to 40% of their assets to be invested in non-residential lending. Fernand St. Germain's financial irregularities connected to the scandal helped end his political career.

1983

USA

Bretton Woods Committee was created by Henry Fowler and Charles Walker, both former Secretaries of the Treasury. The Committees purpose is to lobby Congress to fund the World Bank and IMF.

1984

USA

New home construction, fell dramatically due to the emerging savings and loan crisis that would later account for 747 out of 3,234 S&L associations failing.

Ron Paul, a major proponent of returning to the gold standard, resigned from the House to run for the Senate (he lost). In his House farewell address he stated "It's difficult for one who loves true liberty and utterly detests the power of the state to come to Washington for a period of time and not leave a true cynic."

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