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US must return to gold and silver money

Dating back to ancient Egypt – and likely beyond – gold and silver have traditionally been used by civilizations to facilitate commercial exchanges; in layman’s terms, this means that societies considered “money” to be valid only when it was based on these precious metals. The rationale for doing so is quite simple: gold and silver hold intrinsic value, no matter what happens in the world. History certainly demonstrates this, as both elements continue to remain in high demand well over 2,000 years later.

 

Fast forward to our current state of affairs, and you will see a much different scenario. Virtually every industrialized nation on this planet employs what are known as fiat currencies, or money systems that are backed by nothing other than the word of the respective bank and/or government of issue. While politically convenient, such arrangements are nonetheless hazardous, as they allow bankers and governments to effectively create money out of thin air; by doing so, nations have spent well beyond their means, while fraudulently conveying that their worthless pieces of paper hold monetary value.

 

When juxtaposed against the greatest financial crisis of our era, these revelations also shed light on the mother of all frauds against the US Constitution, and furthermore, the nation for which it stands. To fully understand why I am using such harsh rhetoric, let’s examine a little history, starting with the establishment of the US Constitution in 1787.

 

Being fully aware of the aforementioned facts, our Founding Fathers made certain to include a provision in the Constitution that expressly identifies gold and silver as legal money in the US. Accordingly, Article 1, Section 10 of the US Constitution says "No state shall...make any Thing but gold and silver Coin a Tender in Payment of Debts." (The truncated portion of said clause refers to other limitations, which are independent of this argument, thus, those elements have been removed to provide for ease of reading.)

 

When the US Constitution was officially ratified on June 21, 1788, there was no Central Bank in the United States, and thus every state had the inherent right to produce its own currency, in accordance with Article 1, Section 10. In 1791, The First Bank of the United States was chartered by Congress, and shortly thereafter, theCoinage Act of 1792 officially established a unified national currency. It is debatable as to why Section 10 was never modified as a result (with the assumable transfer of its original intentions for real money on a national level), but in the end, that is inconsequential. The fact of the matter is that the terms remain, and thus, for any tender to be considered legal in any of the 50 states, it must abide by the original terms.

 

News flash: at the present time, the entire US monetary system is both unconstitutional and illegal. Repeat: the entire US monetary system is both unconstitutional and illegal, and I can substantiate this argument by simply noting that our current dollar bills – also known as Federal Reserve Notes – are nothing more than pieces of paper (and pixels on computer screens) because they are not inherently linked to gold and/or silver.

 

While this unacceptable condition has essentially been in effect since 1933, due to the actions of President Franklin D. Roosevelt and Congress (Emergency Banking Act, Executive Order 6102, Gold Reserve Act), it has, moreso, been gradually brought to fruition since the Federal Reserve Act was passed on December 23, 1913 (who would be paying attention to such matters around that time of the year, anyway?)

 

Now, we could also take this discussion one step further, and examine why Federal Reserve Notes have integrated blatant Masonic symbolism (all-seeing eye atop the pyramid, novus ordo seclorum [translation: new order of the ages], etc.) onto our $1 bill since 1935, but I'll kindly pass on that conversation for now.

 

By definition, paper dollars that are issued without an express certification that an equal amount of gold or silver has been secured within the US Treasury (and can be provided to the bearer of said notes, on demand) to guarantee their value, are collectively known as fake money; as previously noted, others may prefer the politically correct term, fiat currency, however, being semantically neurotic, I prefer "fake", as the connotation of this word is generally stronger.

 

Before 1933, every US dollar bill was backed by statutorily-defined amounts of gold and silver. Therefore, anyone holding these bills could literally walk into a local bank, or if they so desired, the US Treasury itself, and demand to redeem them for their worth in gold or silver. As we all know, following the massive banking collapse of 1933, this policy was unconstitutionally suspended when President Roosevelt outlawed private gold ownership by US citizens; some dollars were still redeemable in silver until 1968.

 

Following World War II and the establishment of the Bretton Woods Agreements in 1944, there was a temporary, quasi-return to gold backed US dollars, with one catch: only foreign governments could redeem them at a rate of $35 for one ounce of gold. This system eventually collapsed on August 15, 1971 under President Nixon. Therefore, for nearly 40 years, the US has allowed the Federal Reserve to continuously print new money – in record amounts over the past year, in fact – and for every dollar printed, nothing is placed into the US Treasury to secure its value.

 

Many different schemes have been devised over the years by financial and political elites to authenticate the value of the US dollar; then came the Great Collapse of 2008, and as a result, I believe we will see a worldwide return to gold and silver standards at some point. That being said, we must consider what has happened over the past 75+ years without such safeguards.

 

Right now, anyone holding a Federal Reserve Note cannot demand an equal amount of gold or silver from the US Treasury. This may not seem like such a big deal, but it is; such a system allows the Federal Reserve to continuously create money out of thin air, as we are seeing right now, when there is really nothing of any value to ensure its worth. History has shown us, time and again, that this is extremely dangerous. For example, when you factor in what is currently happening at the hands of the Federal Reserve and D.C. – the unprecedented increase in governmental spending, accompanied by an unprecedented increase in the circulation of US Dollars, which are absolutely being created out of thin air to cover these expenditures (remember, new dollars do not require any gold or silver to be placed in the US Treasury to cover their value) – you will certainly appreciate how very dangerous our economic crisis is.

 

If this system continues as is, it is very possible that we will experience hyperinflation at some point. That means the price of goods and services will raise in correlation to the ever-increasing supply of money; for example, a $5 bill may no longer purchase "$5" worth of products. It may take a $20 bill to cover the original “$5” tab. For more information on this, research the Weimar Republic, and Zimbabwe as well, where the latter is current printing bills as large as $100 Trillion as a result of hyperinflation.

 

Again, this might not seem so frightening to you, but ask yourself one simple question: will my salary or net income likely increase as a result of this? The answer, of course, is no. What about imported goods, which we are literally dependent upon for survival? It will take a lot more of your fiat dollars to cover their cost. So, the money you need to survive will be increasingly less useful in purchasing everyday necessities. How does that sound, for starters?

 

The good news is that there is a way to correct this: by re-establishing gold and silver standards (all dollars must be backed and guaranteed by equal amounts of gold/silver within the US Treasury, to be paid to any bearer of such on demand) in the US, and eventually, across the globe. This will also prevent fraudulent finance and help to mitigate the diabolical greed that currently plagues the banking industry.

 

In closing, below are two distinctly antithetic US dollar bills for your reference. If you cannot view either bill clearly, please contact me, and I'll gladly send you a copy for your records. As a man of my word, I attest that the following words do in fact appear, as is, on both bills.

 

The first, which is literally a "certificate" that was issued in 1923, and backed by Silver, says: "SILVER CERTIFICATE; THIS CERTIFIES THERE HAS BEEN DEPOSITED IN THE TREASURY OF THE UNITED STATES OF AMERICA ONE SILVER DOLLAR PAYABLE TO THE BEARER ON DEMAND"

 

 

Therefore, the first bill denotes Real Money, with real value, because it could only be printed in the event that the silver referenced thereon was deposited into the US Treasury.

 

The second, which is backed by nothing, says: "FEDERAL RESERVE NOTE; THE UNITED STATES OF AMERICA, ONE DOLLAR"

 

 

Therefore, the second bill, which is a product of today's currency system, denotes Fake Money, and is worthless. It was printed by the Federal Reserve, and no gold or silver was placed into the US Treasury to guarantee its value.