PrestoPundit

How FDR Set The Price Of Gold

Posted by PrestoPundit on 07/02/2007

Amity Shlaes explains why FDR was bad for the U.S. economy — including this incredible story:

At some points Roosevelt seemed to understand the need to counter deflation. But his method for doing so generated a whole new set of uncertainties. Roosevelt personally experimented with the currency — one day, in bed, he raised the gold price by 21 cents. When Henry Morgenthau, who would shortly become Treasury Secretary, asked him why, Roosevelt said that “its a lucky number, because its three times seven.” Morgenthau wrote later: “If anybody ever knew how we set the gold price through a combination of lucky numbers, etc., I think they would be frightened.”

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