by Russell Longcore
Today, let’s think about our dollars, what’s happening to them, what will happen to them in the future, and how it’s going to affect YOU.
Federal Reserve Notes are called dollars. The name is actually a misnomer. The term “dollar” was a unit of weight. The US Dollar was created by the Coinage Act of 1792. Prior to that, Americans used all kinds of hard money as legal tender. Spanish coins, British coins, and coins minted in the US were used by Colonials. In the Coinage Act, the US Dollar was fashioned after the Spanish Dollar, which WEIGHED 377 grains of silver. The weight had nothing to do with its value. Our government set the US Dollar WEIGHT at 371 grains of silver, depending on purity. The Gold Eagle was set at between 247 and 279 grains of gold, depending on purity.
Over the past 200-plus years, the US GOVERNMENT has made the dollar worth less and less by unhooking it from WEIGHT OF GOLD AND SILVER and making people believe that its value is based on what it will buy.
ONLY GOVERNMENTS CAN CAUSE INFLATION. Price increases are not inflation. Wage increases are not inflation. Only the devaluation of money causes inflation. If you want to see a propaganda piece about inflation, Google the term “inflation wiki” and read it. It is a lie from start to finish.
So, let’s get to the object lesson about pizza.
You have a nice deluxe 16 -inch pizza. It’s been sliced quartered, so you have four slices. OK…probably could make a meal of one slice.
But the Federal pizza company now slices it into eight slices. But they still call each slice “a slice.” Doesn’t matter how big or small it is. Doesn’t matter if it now takes two slices to make a meal. Everybody still calls each piece of the pizza a “slice.”
Next they cut the eight slices in half. Now you have 16 slices. Now you have to eat four “slices” for a meal. But everyone still calls each piece a “slice.”
The Feds make another series of cuts, and now you have 32 tiny slices. It will take 8 to make your meal. But you can’t call them appetizers. Oh, no. You still have to call each of the 32 tiny slivers a “slice.”
I know this is a silly example…or is it? Are you old enough to remember when “penny candy” actually cost one cent? Can you remember when a brand new American car cost less than $2,000? Remember when a 1000 square foot house could be bought brand new for $21,000? I do. I experienced all of those things between 1960 and 1972.
Now candy costs a quarter or more. Can’t buy an American car for less than $10,000, and that house would go for $75,000. The goods didn’t really change. It was the buying power of the money that changed. The government greenbacks still look mostly the same as they did in the 1930s. They are still called “dollars.” But they are only worth whatever they can buy on any given day.
What will you do on that day it takes a $20 bill to buy a loaf of bread?
When money is anchored to a precious metal like gold or silver, it cannot be inflated. That’s why governments hate the gold standard so much. It ties their hands.
The Federal Reserve, with the approval of every Congress since the 1930s, and every President except John Kennedy, has gone along with the theft of our money system. By flooding the world with paper currency, the Federal Reserve has sliced up our pizza into tinier and tinier bites. Some day soon, they will add a zero to a Federal Reserve note.
One of the other signs of the end is when the Federal Reserve begins to print money in denominations greater than the $100 bill. If you see $200 bills, or $500 bills, better get ready. Hyperinflation is just around the corner.
Ladies and gentlemen, the US Federal Government cannot stop this inevitability. Never in the history of the world has a government survived that devalued its currency. However, Byzantium thrived for over 700 years on a gold standard.
If the US Government collapses, or if America states begin to secede from the Union, one of the first things that the new nation will have to deal with is what form of currency they will use. But resolving that issue could go on for months. What will you do in the meantime?
Maybe you should think about putting your money in something other than Federal Reserve pizza slices.
DumpDC. Six Letters That Can Change History.
© Copyright 2009, Russell D. Longcore. Permission to reprint in whole or in part is gladly granted, provided full credit is given.