Liberty is measured in gold

November 10, 11:13 AMHabersham County Conservative ExaminerStan Transue

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Vladimir Lenin observed, “The best way to destroy the capitalist system is to debauch the currency.”

What Lenin knew, we would do well to understand.

When our rights and liberties are condensed to their essential element, we discover that without money; to sustain our lives, exercise our liberties and pursue our happiness; we are powerless. Those who influence the value of our money have more control over our liberty than all the noble laws of our great land.

The value of currency is determined by the Law of Supply and Demand. The value of the Dollar goes up when they are scarce, and down when they are plentiful. Paper currencies can be multiplied on a whim. Gold can only be mined and minted at a certain rate, making it a more secure store of assets. So the price of gold reveals the true value of the paper currency used to buy it.

In 1913, the Federal Reserve Act ceded congress’ duty “to coin money, and regulate the value thereof...” to a privately owned and operated Federal Reserve Board. The act was marketed to a naïve public as a panacea for economic instability, promising an end to the (secretly engineered) “boom and bust” cycles that plagued the nation. After 96 years, how has it worked?

In “The Creature from Jekyll Island,” G. Edward Griffin observes, “Since its inception, the Federal Reserve has presided over the crashes of 1921 and 1929; the Great Depression of ’29 to ’39; recessions in ’53, ’57, ’69, ’75, and ’81; a stock market “Black Monday” in ’87, and the recessions of 2001 [and 2007].” In 1913, the price of gold was $32.00 an ounce. On November 10, 2009, it was $1,102.00 per ounce. That is a 98% increase in the value of gold; or more accurately, a 98% devaluation of the dollar, in 96 years.

If you own lots of gold this is great news. However, if you rely upon Federal Reserve Notes to pay your mortgage and feed your children, it is devastating. Based upon this trend, the dollar will be worth nothing by 2012.

Federal deficits are made possible by the Federal Reserve System. They play a huge role in the devaluation of the dollar through inflation (sometimes called a “secret tax”). According to the Office of Management and Budget’s (OMB) recent ten year budget projections, government borrowing will create $9 trillion in new federal deficits between 2009 and 2019. That translates to $29.6 million in new debt for every man woman and child in America – over and above our crippling tax burden. If you spent $12 million per day since Jesus was born, it would still not equal $9 trillion dollars.

Such reckless spending inevitably leads to total economic collapse. It may already be too late, but with the 2010 elections approaching, all of us have a chance to do the right thing. Vote only for candidates who promise to restore sustainable economic policies and sound currency.

It is understandable to blame politicians and bankers for this mess; for they have knowingly traded our liberties for their own wealth and power. But if we know the facts and fail to hold them accountable, the true responsibility belongs to us.