Weren’t people broke during the depression? Exactly where were they getting this tremendous amount of gold that brought the banks down??? It doesn’t even say they withdrew it all in a bank run, it says they stopped depositing. Shady claim, someone should show the numbers lmao
I like how this St Louis Fed post blames people for banks’ failings.
Flip it around. Banks irresponsibly created way more claims for gold than they had gold, kept defaulting, and lost trust. So the government made gold illegal to own for like 40 years.
There was no “shortage” of gold in the Great Depression. There was an excessive amount of fraudulent promises for gold, made by commercial banks and central banks.
https://www.stlouisfed.org/open-vault/2017/november/why-us-no-longer-follows-gold-standard
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