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Our Government WANTS to Destroy Our Gold Treasury

17 Jun

Quoth the economist:  "Nevermore"? [courtesy Google Images]

Quoth the bankers: “Nevermore”?
[courtesy Google Images]

It’s nearly three years since gold peaked at $1900/ounce.  Today, it’s about $1,270.  Since the A.D. 2011, $1900 peak, the price of gold has fallen 33%.

This prolonged fall has been incomprehensible to me.  I can understand a “correction”.  I can understand that gold might fall, say, 30%.  But I’d expect that after gold fell 30%, “fundamentals” would quickly cause gold to rebound to ever-higher levels.

However, I could not understand (until now) why gold would linger at current low levels despite all the fundamentals that I believe should be pushing gold ever higher–even now.

For example, one “fundamental” (at least, to my mind) is the fact that our government needs inflation to repudiate part of the enormous national debt and thereby allow government to repay its debts with “cheaper” dollars. That’s why the price of gold (though manipulated) was allowed to rise 20% per year for most of a decade before the A.D. 2011 peak.  The “manipulation” didn’t push gold down, per se, but it prevented it from rising as quickly as it might have.  The rising price of gold confirmed that inflation was present, the fiat dollar was losing value, and the national debt was being partially repudiated.

Given government’s “fundamental” need to repudiate at least part of the national debt by means of inflation, it made sense to me that government would allow the price of gold to rise at, say, 20% per year–but not 30% or 50%.

But then gov-co knocked gold down from $1,900 to today’s $1,270 and has held it at these low levels.  That’s evidence of growing value of the fiat dollar.  That’s evidence of deflation which is anathema to economic growth.

Holding the price of gold down contributes to an increase in the value of the fiat dollar and therefore an increase in the purchasing power of the national debt.  Holding the price of gold down contributes to deflation which causes economic decline.

So, it’s made no sense to me that the government has depressed the price of gold for most of three years.  Doing so appeared to me to be contrary to government’s own interests.

Worse, it’s been supposed that the downward manipulation of gold prices may have been achieved by government secretly selling some or most of the 8,200 tons of gold allegedly held in the US Treasury into the commodities markets at low, low, prices.  Why sell the US Treasury’s gold?  To maintain the illusion that the fiat dollar still have strong purchasing power and value.  They sold the gold to protect the dollar.

I considered those suspicions and marveled that government could be so damn dumb that they’d sell off America’s gold treasury at artificially reduced prices in order to temporarily protect and sustain the perceived value of the intrinsically-worthless fiat dollar.  Gov-co appeared to be literally giving our gold away to temporarily support the fiat dollar.  Didn’t they know that, inevitably, the markets would consume every damn gram of gold held in the US Treasury?  Didn’t they understand that the fiat dollar was inevitably doomed to die?  And why were they selling “our” gold to foreign entities (like China?) rather than, at least, to the American people?

On reflection, I realize that the previous questions weren’t evidence of the government’s ignorance, but rather, of mine.

Of course (if they are truly selling off the US Treasury’s gold), the government knows that soon that Treasury will soon be empty.  Of course, they know.

So, why are the selling US gold?

Because that just might be exactly what they want–a US Treasury devoid of gold.

Why?

Clearly, government knows that the fiat dollar (like every other fiat currency) must eventually collapse in value.  Maybe this year.  Maybe five years from now.  But, inevitably, the fiat dollar must die.

I presume government also knows that once the fiat dollar dies, the American people will go through so much economic trauma that they’ll be actually forced to learn what the terms “fiat dollar” and “fiat currency” mean.  (Imagine!  An economic depression so severe that Americans are forced actually learn something!  Scary thought, hmm?)

Once Americans associate the term “fiat dollars” with economic trauma, they’ll be extremely reluctant to agree to replace today’s “fiat dollar” with another new-and-improved “fiat currency”.  Instead, there’ll be a significant public demand for a new, gold-backed currency.   The Powers That Be might not be able to resist that public demand in the arena of public opinion.  If public demand were sufficiently strong, we might actually get a gold-based currency.

But if America’s public demand for a gold-based currency couldn’t be defeated politically, the entire, global, fiat-currency system would probably be destroyed.   That fiat currency system is the foundation for big government and the New World Order.  If the world goes back to a gold-based monetary system, big government and the New World Order will die.

From the New World Order’s perspective, if the United States couldn’t reestablish a gold-based currency, it’s also unlikely that any other nation (including China) could do so, except at a fantastic price of, say, $50,000/ounce, for physical gold.

But, assuming that the Powers That Be are most concerned with the United States reverting a gold-based currency (after all, gold and silver are expressly mandated at Article 1.10.1 of the US Constitution), the simplest way to prevent the American people from having a gold-based currency is to remove all gold from the US Treasury.

If America has no gold, America can’t back its currency with gold.

If American has no gold, there can’t be a gold-backed US currency.

No matter how loudly the American people might scream, shout and demand a return to gold-based currency–they can’t possibly have one, if the US Treasury has been completely depleted of all of its gold.

 

•  Of course, despite our strong suspicions, we don’t yet absolutely know that the federal government has secretly sold off most of the US Treasury of gold.  But if our gold treasury has been virtually depleted (which, previously, seemed irrational to me), that secret sale now makes sense as a means to preempt any political movement in the United States to reestablish a gold-based currency.

The current fiat dollar may die, but if America has no gold, our next currency must be another fiat currency.  It might be a pink paper dollar issued by the federal government.  It might be an “Amero” issued by the North American Union.   It might be some sort of “Special Drawing Rights” issued by the New World Order.

But if the US Treasury has secretly sold all or most of America’s 8,200 tons of gold, there can’t be another US currency that’s backed by gold unless and until our Treasury is restocked with 10,000 to 20,000 tons of gold–and how could that happen without first rebuilding America’s former industrial prowess?

The truth is that most of the US 8,200 tons of of gold in the US Treasury was accumulated as a result of World War II.  The rest of the Western world was devastated by war.  America was the only productive nation that was still intact.  We made a killing in international trade and stocked up several thousand tons of gold.  I doubt that America could ever repeat that performance except in the context of another World War where, again, the industrial capacity of most of the world was destroyed, but the US industrial capacity remained unscathed.

A World War that destroys foreign industry but leaves American industry intact is no longer conceivable.

Implication:  If most of the US Treasury of gold has been secretly sold, we will probably never again see gold in the US Treasury rebuilt to the 8,200 ton level.  If so, we’ll not see another US currency that’s backed by gold.  Ever.

 

•I could be wrong, but I’m almost convinced that our government and the New World Order are intentionally selling all of our gold at bargain-basement prices to ensure that it’s impossible for America to replace the current fiat dollar with a new US dollar that’s backed by gold.  Without a huge supply of gold in the US Treasury–unless we are prepared to engage in a shooting revolution–we’ll be condemned to live in a fiat world far into the future and remain subject to the power and control of those who print and/or issue the global fiat currency.

Contrary to what I’d previously supposed, the government isn’t selling America’s gold to protect the US fiat dollar.  They’ll let the fiat dollar die.  And probably not so long from now.  The dollar is disposable.  The global, fiat monetary system is not.  They’re selling US gold to protect the global, fiat-currency system against America’s possible return to a gold-based currency.

If the US Treasury’s gold is gone, that loss will preempt any attempt to return to a US gold standard.

For me and for now, that’s the only explanation that makes sense for the past two and half years of gold’s decline.

 

 
23 Comments

Posted by on June 17, 2014 in Economic collapse, Fiat Currency

 

Tags: , , ,

23 responses to “Our Government WANTS to Destroy Our Gold Treasury

  1. wholy1

    June 17, 2014 at 12:31 PM

    yo, Alfred
    1) sincerest thx for your continuing yeoman’s contribution in the pursuit of Truth and Remedy.
    2) but . . . . , I must respectfully decline your offer of inclusion to “our government”.
    3) in the daily pursuit if ever greatER discernment of the Blessings afforded since the Beginning,
    i am increasingly conscious of the benefit of avoiding labels and the possessive tense.
    4) hence, with regard to Trusts, i wish to inquire of you as follows: when each sentient [womb]Man is manifested in to this world, but not of this world, and provided with an in-common apportionment of the Estate, what party/role is/should He/Her to the Trust – Grantor, Trustee, Beneficiary?
    5) i [will] remain an avid monitor of your dispensation[s].

    withOUT prejudice by Steven Roy: Buck

    Expressly reserving ALL “inherent”, “individual” RIGHTS and LIBERTIES accorded per the Declaration of Independence, and prescribed in the written Word as interpreted through the [w]holy Spirit.
    An irascible, incorrigible, reprehensible but now redeemed reprobate.
    Formerly operating on the same “too little, too late” and/or “day late, dollar short” meme of the distracted, dumbed-down, debt-ridden, physically debilitated [by design], MSM-cultivated-on-dung-in-the-dark – mushroom “democrac[ked] majority”.
    NOW operating as a “just Man”, NOT “just [another ordinary] [hu]man OR OTHER animal”.
    A very unique, special and sentient Man as EACH and EVERY Man and wo[mb]Man were created in the Beginning.
    A unitary, unanimous majority of [the] 1, [w]holy-owned subsidiary of and humble servant to the Creator.
    Firmly “b[e]rthed” on an unencumbered portion of alloidium [soil], county Pinal, in Arizona, one of the constituted republics, of the[se] united States of America.
    Freely choosing to [re]covenant with and “under[ ]stand” the SUPREME jurisdiction of the Creator,
    and fully redeemed – through the repentance process – the appellate jurisdiction accorded by the Redeemer.
    NOT “presumed” to be SUBject to any commercial/corporate/maritime enterprise without prior full PUBLIC disclosure and documented contractual authorization by this Estate Executor’s undivided/in-common apportionment in this worldly space/time continuum.
    Humbly seeking, by considerate, honorable social intercourse/contract and righteous intent, the ULTIMATE Grace best demonstrated by a purported utterance made under circumstance of government-agent-sanctioned, excruciating, [this worldly] life-ending pain, to wit : ” . . . forgive them, for they know not what they do”.

    Y’all be NOTICED!:
    1) REALIZE – how very special, unique and IMPORTANT is EACH/EVERY Man/[wo]Man’s [this]worldly manifestation in the Creator’s IMAGE!
    1) RESTORE Covenant – established from the Beginning – with the Creator!
    2) REPENT – and again realize and access the Blessings evident and available since the Beginning!
    3) RESTITUTE – according to each Individual’s FINANCIAL capability and VESTED UNIQUE abilities!
    4) RESOLVE – henceforth to OBEY the HIGHEST Authority, according to the ABSOLUTE, Natural Law[s]
    prescribed in the Word and interpreted thru the holy Spirit, NOT the “legislation” of corrupted, political hacks that is subsequently “codified” by government “WONKs” into endlessly “revised statutes” to be “interpreted” in de-facto maritime/equity courts and [selectively] enforced by “offical” government thugs, all to the financial benefit of global [D]elites via corporate “PERSONs”.
    5) RESUME continually – with righteous intent and honorable conduct – your duties and responsibilities the Office of Man, that apportionment of the [original] Estate benifacted and enTRUSTed to you by the Creator at your [this worldly] “in”ception.
    6) RESPECT/obey the SUPERIOR Natural, Absolute Law(s) and SERVE those around you in [real] need, deferring CONSEQUENCE to the Creator!
    PURSUE a self-sufficient, self-sustaining life-style by application of the fundamental “G’s”, the first three to wit:
    a) GROUNDed – unencumbered, arable “allodium”, minimum 50 miles distant all coastal regions, large urban/suburban areas, nuclear plants.
    b) GROUPed – “Where two or more GATHER . . .” [Attempting] to “survive” separately or “thriving” collaboratively as the Creator intended from the Beginning. Stand TOGETHER or be swat-teamed alone. What’s the elemental blessing here?
    c) GUNned – how can you serve other repentents in [real] need with your “preparedness” when gov’t-subsidized “Fast & Furious” armed roving gangs and marauders or the unrepentant, unprepared, desperate but armed Lame-Dream-Tedia (MSM te-LIE-vison) “news”/sports mushroom-cultivated sheeple slugs attempt to take it by force?
    ATTENTION!:
    1) equity/administrative magistra[i]tors / BAR-fly l[ie]wyers
    2) Fraud – no longer, “Federal” – Gov’t SUBsidized state/county/local compromised gov’t “officials”
    3) “Fraud Preserve” (PRIVATELY-owned Federal Reserve) affiliated, debt-dealing, usurous LENDers/banksters
    4) government agents, facilitators, [selective] regulators, legis-TRAITORS and bottom-feeding, addled, kuckle-dragging, roided-up, “official” just-doing-my-job” enforcement thugs:
    Are not your activities being MORE-so RECORDED & DOCUMENTED by the very same evil “authorities” you “serve”, not to mention your government and media-promoted snitching, beggar-thy-trendy neighbor(s)/”work” associates?
    Regardless of your “[gov’t] employer/handler” prevailing in the [temporary] end, what be you or your family/friends/associate’s possible/eventual circumstance?:
    1) a Hitler/Stalin/Mao gulag-style internment camp – if you are one of the “fortunate” sparred.
    2) a Pinochet-style disappeared, NDAA executive-ordered Al-CIA-da renditioned or out-right eliminated-by-[apparent]suicide?
    3) a “safe-haven”, “restricted-travel” FEMA camp – only to insure your family’s continued “safety” and not your continued compliance, of course.
    4) rejection or judicious retribution by the ultimately prevailing productive, prepared, resourceful, righteous that you intimidated, coerced, defrauded, sanctioned, parasitized, pillaged, incarcerated, injured and murdered.
    Do you not understand that the “just-doing-your-job” evil you perpetuate may very well be done unto you by the very same psycho-paths with whom you have chosen to associate and/or serve? Perhaps you and/or your “near & dear” are so delusioned, complacently “believing” you have reserved tickets to [one of the] underground luxury complexes or redoubts of comfort and “security”, together with the self-indulgent, aberrant, parasitic, psycho-pathic, eugenicist [D]elites to whom you have chosen to serve directly or indirectly? Do you think that Evil discriminates in the pursuit of its inexorable perpetuation?
    Are you aware the eventual outcome of the majority that facilitated Hilter, Stalin and Mao’s rise to dictatorial power?
    Do you [continue to] believe that you are part of the wheel and will never become the “grist/grease in the wheel”?
    Is this not just more of the corp-owned “Lame Dream Tedia” distraction from the issues of consequence?
    1) the looting of the shrinking private, working sector’s accrued wealth and REAL asset being transferred out of the country.
    2) Benghazi.
    3) Fast & Furious.
    4) the younger gen’s financial continuing, unmitigated enslavement by undischargeable student loan debts.
    5) physical, mental, financial debilitation, compliments of Monsanto, Big Pharma government corruption/subsidy.
    6) deliberate du[h]mbing-down by the supplanting of “education” with government “Common Core” propaganda/programming.
    7) international drug/arms running/profiteering & terror inciting via “al-CIA-da”.
    8) the super-subsiding of the TBTF (To-Big-To-Fail) financial gangsters by the “Fraud Preserve”
    several times greater than ALL combined serf-subsidizing!
    9) at the least, gov’t agent/thug complicity in OK City bombing, 9-11, Sandy Hook shooting, Aurora CO shooting, Boston Marathon bombing, ad infinitum.

     
  2. Roger

    June 17, 2014 at 2:07 PM

    Al, such large quantities of gold are not moved without leaving a paper tail. In which markets do we find such evidence of these gold sales by the US Treasury?

     
    • Adask

      June 17, 2014 at 2:55 PM

      If the gold is being sold from the US Treasury, there must be a paper trail just as, if Louis Lerner exchanged email with President Obama on persecuting the Tea Party, there must be a paper trail. Or, at least there was a paper trail.

      If there is a sale of US Treasury gold to foreign countries, that sale is SECRET and possibly illegal. I guarantee that IF such sale is taking place, then: 1) it will be one of the government’s most closely-guarded secrets; and 2) I have no ability to find the resulting paper trail.

      But, the possibility of such sale can still be inferred from the seemingly endless supply of physical gold available to COMEX and also from the government refusal to return 300 tons of gold requested by Germany. Both suggest that the US Treasury may be nearly out of physical gold.

       
      • Roger

        June 17, 2014 at 4:01 PM

        Thanks Al, but it was the Federal Reserve, not the government, who refused to return those 300 tons of gold to Germany. The gold was deposited at the Federal Reserve. The US government wasn’t directly involved.

         
  3. Henry

    June 17, 2014 at 2:28 PM

    Adask wrote, “If American has no gold, there can’t be a gold-backed US currency.”

    There can’t be a gold-backed US currency in any case, because there isn’t enough gold available to perform the required functions of money.

    Just using the total net worth of US households (about $80 trillion) as a lowball baseline, this is already 10 times the value of all the gold in the world (about $8 trillion).

    While it may be nice in theory, backing the US dollar with gold is impossible in practice due to real-world supply limitations.

     
    • Adask

      June 17, 2014 at 2:47 PM

      It’s true that there’s not enough gold to support a gold-based currency at the price of $1,270/ounce. But there’s plenty of gold to support a gold-based currency at the price of $50,000 per ounce.

       
      • Henry

        June 17, 2014 at 3:54 PM

        The market does not value gold at $50,000 an ounce. Nowhere near. Backing a currency with gold at such an inflated price is as good as having no backing at all.

        Offering to redeem $50,000 with an ounce of gold is pointless when anyone can get 40 times that quantity of gold for the same cash in the open market.

        The market has valued the GDP of the United States at $17 trillion. How are you going to settle all these trades in gold, when the total world gold supply is valued at less than half this amount?

        There clearly isn’t remotely enough gold to perform this, and many other, necessary functions of money.

         
  4. citizenquasar

    June 17, 2014 at 5:12 PM

    I agree with Dr. Joseph Farrell, more or less. According to him, there is likely as much gold OFF the books in hidden budgets behind and beyond the standard black op budget(s) that can be used to manipulate prices. He appears to make sense to me.

     
  5. henry

    June 17, 2014 at 6:22 PM

    You speak of US government actions to manipulate the dollar and/or gold as part of an effort to maximize the economics of the United States. I think we are past that point. America has been captured. The banksters are not working for the United States or the people of the United States but to the oligarchs that own them. The one thing in the way of the oligarchs total domination is the idea that governments are instituted to secure the unalienable rights of each man and woman. If they go too far, the government might take away all of their stuff. They must destroy America. The way to do this is to weaken us – intellectually, spiritually, economically, and physically.

    The Department of Education has reduced the education of American children so that that a majority of Americans can not think critically about anything. Common Core is just the next step so that the children exposed to it will be unable to learn critical thinking skills when they get out of school.

    The Federal Reserve and Department of Treasury (as opposed to the United States Treasury) have taken away our wealth with their Internal Revenue Service.

    The entire legal system has made comprehending the law almost impossible. If you don’t assert your rights, they are deemed to be waived. If you don’t know how to assert your rights, you don’t have any.

    The welfare system has taken our spirit of charity. At one time, people who had difficult time feeding their family went to churches. They would see people dressed nice learning lessons of morality and civility. These well dressed people have figured how to feed their children and even give money, voluntarily, to help yours. They built a safety net in case they of their offspring should need a helping hand, it would be there. Now the government “helps” people in need. Those receiving aid don’t see the people helping, Instead of saying thank you, they say those rich A-holes are trying to steal my god-dammed money. The productive citizens say it is the government’s job to help the poor and my goal is to reduces my taxes.

    The AMA got most non-allopathic medical solutions outlawed. Medicaid and Medicare killed the free market in medicine since the majority of health care of Americans is paid by government. Obamacare is a scam that gives those who don’t wish to participate in the defective system the choice of paying for it or being put in a cage where they can be anally raped.

    Big pharma merged with big agra to poison the food supply. The goal of this is to get you to buy more “medicine” and reduce our ability to resist diseases that they will introduce.

    The paid talking heads on TV have fundamentally changed the morality of the people.

    The control grid that they have built is watching what the American people are thinking 24/7. When the oligarchs are confident that they can get away with it, they will crash the whole house of cards.

     
  6. Toland

    June 17, 2014 at 6:43 PM

    Henry wrote to Al: “The market has valued the GDP of the United States at $17 trillion. How are you going to settle all these trades in gold, when the total world gold supply is valued at less than half this amount?”

    Interesting point.

    Al,

    In general terms, for every billion dollars (or euros, etc.) of GDP a nation has, what do you estimate is the minimum amount of gold-backed dollars (or euros, etc.) that nation should have in circulation? Ballpark figure.

     
  7. Anthony Clifton

    June 17, 2014 at 6:55 PM

    Christian {those who serve and worship Jesus..”Truth”} Americans {pre-1860}
    should never refer to a global Jewish crime syndicate as government…

    how can the formation of a Republic in the 1790’s be compared to a
    Jewish Banker owned
    Democracy in the 1930’s that confiscates all the gold…

    but the further question is no matter what the market value of gold
    might be from day to day,
    is the issue of Justice a higher priority ?

    remembering the formation of the so-called union was predicated or founded
    on establishing Justice

    how does one have Justice without Truth ?

     
  8. Adask

    June 17, 2014 at 7:05 PM

    I have no estimate. It depends on how much gold that nation possesses. If the nation has $1 trillion in cash floating around and 8,200 of gold, we’d have one price. If that same nation had $20 trillion in cash and 8,200 tons of gold, the price would have to be 20 times higher. If that nation had $20 trillion in cash and only 4,100 tons of gold, the price of gold would have to double again.

    But, in order to back a currency with gold, the the government couldn’t just set the price of gold at whatever was currently mathematically correct. They’d have to set the price much higher. I.e., if the math said we needed to price gold at $25,000 per ounce, the government might set the price at $50,000 an ounce. At a lower, current market price of $25,000/ounce, there might be a lot of gold bugs who, fearing some sort of economic collapse, would instantly redeem their paper currency for an equivalent amount of gold. But if the government set the price at $50,000 per ounce people would be less likely to have an “extra” $50,000 to buy one ounce, and they’d also be disinclined to do so since the free market price for gold was less than the “official” rate.

    There is no mathematical solution to the currency problem. Can I tell you the exact or even approximate price of gold that would be necessary to back the dollar with gold? Nope. I doubt that anyone else can, either.

    More, I’m sure I’ll hear from a number of readers who point out numerous flaws in my suggestions–and they’ll probably be right.

    But, despite all the difficulties, a gold-based currency still makes sense because government can’t spin gold out of thin air. Because government can’t “spin” gold, they can’t borrow or spend endlessly and grow to gargantuan proportions. Fiat currency is the fundamental power behind Big Government and the New World Order. A gold-backed currency would cause limited government and a collapse of the New World Order. Is gold a perfect money and/or solution to big government and the NWO? No. It has plenty of flaws. But it’s the best alternative for anyone who wants limited government and national and personal independence and liberty.

     
  9. Henry

    June 17, 2014 at 8:07 PM

    Toland asked, “In general terms, for every billion dollars (or euros, etc.) of GDP a nation has, what do you estimate is the minimum amount of gold-backed dollars (or euros, etc.) that nation should have in circulation?”

    Your question has a familiar answer in terms of the “velocity of money” concept in basic economics.

    The velocity of money is the number of times one dollar is spent on goods and services per unit of time. It’s a measure of how active an economy is. The velocity of money is calculated like this:

    V = T / M, where T is the GDP of the economy, and M is the money supply.

    In the United States, V has been about 0.6 for the last 50 years. This means the value of all the goods and services produced in a year (GDP) is 0.6 times the value of the money supply (M2).

    Since the US produces $17 trillion worth of goods and services in a year, this would require $28 trillion worth of gold in order to have a gold-backed currency at our current level of economic activity. This is more than triple the entire world’s gold supply.

    So you can see why a gold-backed US dollar is an obvious non-starter.

     
    • Toland

      June 17, 2014 at 10:14 PM

      Henry, that helps.

      Thanks for the non-handwavy, no-bullshit answer.

       
  10. Bobby G

    June 17, 2014 at 8:13 PM

    I doubt that we have very much gold since 1933. Most of our gold went the Rothschild Bank in England to pay on the credit loan, which the U.S. defaulted on in1933. Fort Knox is filled with gold? Ane I have a bridge to sell you.

     
  11. Adask

    June 17, 2014 at 10:04 PM

    Will you take a check for that bridge?

     
  12. Roger

    June 18, 2014 at 2:27 AM

    So, Henry, I tried to put what you’re saying into simple terms.

    1. The annual value of the goods and services produced by a given economy (i.e. its GDP), combined with a few other variables, dictates a minimum size for the economy’s money supply.

    2. Accordingly, the minimal money supply corresponding to the current US economy is equal in value to 3 times the entire global supply of gold.

    3. Thus, a gold-backed US dollar, while a great idea on paper, is impossible in practice due to an insufficiency of gold.

    If I’ve paraphrased your argument correctly, it seems like a pretty straightforward piece of economic reasoning which should be looked at, and critiqued, by all concerned.

     
    • Adask

      June 18, 2014 at 12:44 PM

      There is only an insufficiency of gold at a low price per ounce. It’s conceivable that each “dollar” could be a sealed plastic disk the size of a quarter that carried just one gram or even one milligram of gold. The gold content of each paper dolllar might be included as a wire within the plastic “security strip” in each dollar. If anyone wanted to steal the gold in the security strips, let ’em do so. You remove the gold content from the paper dollar and the paper becomes worthless. So long as the “official” price of gold included in a paper dollar is higher than the free market price of gold, anyone who tore the security strip out of a paper dollar would actually lose “money” (purchasing power).

      If the price of gold were set high enough, there’s plenty of gold to use as money. If the price of gold were $50,000 an ounce, then all we’d need is 1/50,000 of an ounce to back a dollar.

      The great advantage of gold is that the government can’t spin a milligram of gold out of thin air any better than it can spin an ounce or a ton. The object of using a gold based currency is to prevent the government from “spinning” a fiat currency out of nothing and using that power to enrich and empower itself at the public’s expense.

      You can point out all of the flaws in using gold as a viable currency, but have you bothered to to consider that there just might be a flaw or two in in fiat currencies? For example, in my lifetime, the fiat dollar has already lost about 95% of its purchasing power as compared to gold. If my grandfather had left me $1 million in fiat dollar when he died back in A.D. 1968, and I just found that treasure today, that fiat currency would only have about $50,000 in purchasing power. Thanks to fiat currency, my grandfather’s will (that I receive his money) would be frustrated and I’d be robbed of 95% of the wealth I should’ve inherited.

      If grandpa had used his $1 million in paper dollars to buy gold back in the 1960s, and left me a box of gold (rather than paper dollars) I’d have 28,000 ounces of gold of gold today. I’d be modestly rich and government could not have robbed me by means of inflating the their fiat dollars.

      Fiat currency is extremely practical–so long as you don’t mind be robbed by the government. Fiat currency is extremely practical–so long as you mind government using its ability to engage in unlimited printing of fiat currency to enrich and empower government and allow it to control us all with the illusion of wealth. Fiat currency is extremely practical–so long as you don’t mind spending your life as a debt-slave. Fiat currency is extremely practical–so long as you don’t mind surrendering your rights and freedoms to the government that prints the fiat paper or digital “tokens” that allow you to rent an apartment or buy some food–and allows government to render you homeless or starving if it cuts off your access to their fiat currency.

      Fiat currency is a banker’s dream and free man’s nightmare.

      Baron Rothschild famously observed, “Give me control of a nations money and I care not who writes the laws.” It’s very hard to control a money backed by gold. It’s easy to control a fiat currency. Fiat currency is Rothschild’s dream and the means of impoverishing the American people.

      This country rose to prosperity and power while we had a gold- or silver-backed dollar. Since we adopted a pure fiat currency in A.D. 1971, American prosperity and power have stagnated and then declined. That’s not a coincidence. Your children will live in poverty and bondage because people in government and without have advocated the “practicality” of fiat currencies.

      Fiat currency is suicidal.

       
      • Roger

        June 18, 2014 at 6:06 PM

        Alfred, I can’t believe you said: “If the price of gold were set high enough, there’s plenty of gold to use as money. If the price of gold were $50,000 an ounce, then all we’d need is 1/50,000 of an ounce to back a dollar.”

        Say wut?

        If the price of the gold in your “gold-backed” currency is going to be artificially “set” by the issuer, then what you’re describing is a fiat currency.

        Such a currency would not be based on intrinsic value, but rather on the say-so of the issuer. You might as well keep it simple and leave out the gold altogether. Merely “set” the price of the paper to whatever is need, since the whole point of a gold standard would be defeated.

         
  13. Alfred Adask

    June 18, 2014 at 6:13 PM

    roger, I can’t believe you implicitly back a fiat currency that guarantees that the people will be robbed of their earnings and wealth.

     
  14. Pat Fields

    June 19, 2014 at 4:29 AM

    Credit circulating in place of money is the central means of manipulating … everything … in exchange between both man and country. That’s the prime evil to be defeated on this plane of existence.

    “The issue which has swept down the centuries and which will have to be fought sooner or later is the people versus the banks.” –Lord Acton

     
  15. jamesnicholas2047

    June 26, 2014 at 4:10 PM

    My willingness to believe that the U.S.Gov/Co., would ‘fear’ an American electorate concerning a demand to a gold-backed/silver-backed monetary system is thwarted by my lack of knowledge in the numbers of Americans who understand the basic history of our monetary system. It really begins there IMHO. That stated, I’m equally sanguine concerning my ability at bartering within locality-based ‘exchanges’ what one could call a neighborhood and the willingness of my various locals at dealing with me. Though perplexing as ‘ what if ‘ scenarios can get,…( like playing a game of chess against a computer and hitting the ‘undo’ button ), I do that to increase my learning curve for the game I’m playing – instead of suffering through a doomed game. Therefore, what can I (and We) do to ‘undo’ an otherwise ‘doomed’ outcome. Practice what we expect to happen (with peaceful limitations of course) by bartering now with silver bullion and perhaps gold bullion for the bigger buys. Be cautious of numismatic coins as the premiums can be seriously high, and might even be counterfeit (even if graded). Learn to scavenge now and learn to scrape some metal. I’m keen on fixing ‘stuff’ and selling what I can to folks who may need it or have already expressed a need for some widget. Turn off the Hal Lindsey’s and enter your prayer closet. He will guide you and sustain you.

     

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