Since the beginning of time, mankind has had a love affair with gold and it’s cousin Silver. Ancient history shows it was worn as adornments, as it is today and throughout history as money. We used it in the United States as currency in our early history.
Not too many years ago, our Treasury issued gold and silver certificates, which looked similar to our federal reserve notes we use today, which are backed up by nothing, but back then you could take these gold and silver certificates and exchange them for the actual gold or silver relative to the denomination on the Treasury note.
Also, not so long ago our currency was backed by gold. This all changed by President Nixon in 1971. Our once silver coinage was also eliminated around 1965 replaced by metal with little or no value. So all in all the American people were hoodwinked by our government in believing that our new paper money and coinage was good for exchange.
It would not be the first time in history that government has pulled the wool over our eyes. In 1933 the ownership of gold was declared illegal by President Roosevelt and he made all Americans turn all their gold into the government for $20.67 per ounce. Roosevelt then raised the price of gold to $35.00 per once giving the government a 69.33% profit. Otherwise stated a 69% tax on the people’s gold.
This is just one of many examples perpetrated by our government, is it no wonder confidence has long since gone with the wind. But, getting back to the mystic of gold and silver by all people throughout the world, the question is asked is it because of the imperishable quality of the metal, or is it the way it feels when you hold it in your in hands.
Not too many years ago, Las Vegas used silver dollars as currency extensively in the State and people were entranced by these coins. They prized them and often took them home as collector items. An interesting side note these silver dollars now sell for up to $30 each…inflation anyone?
Now to come to the point of all this, if gold is so well thought of around the world and has been the backing of currency in the past by our country and almost all countries around the world, why did we leave it?
Was it because the big spenders in the world and in our United States felt constrained by the limitations on expanding our currency through the constrains of being on the gold standard, which by its very nature puts breaks on the expansion of money supply by a nation?
The results of taking these breaks off and creating debt is a devaluing of the nation’s currency, crippling its buying power. This makes the big guys rich, but seriously impacts the ordinary family.
In 1971, we went off of the gold stand for our nation’s currency, and we had little debt then, but look at us now $22 trillion and climbing. Is there anyone in the United States including our brain dead elected officials that think this can ever be paid? What lies ahead for our nation and the world is a monumental collapse. The bubble is about to pop.
This time there are no handy dandy solutions, those have already been used up in past band aids on the economy….shortly we will see the end of this merry -go-round………but there might be a possible solution. That is to say, a prominent economist has come forth and has proposed the idea and mathematically proven it, that if we, together with the nations of the world agree to go back on the gold standard for our respective nations currencies and raise the price of gold to $10,000 per ounce we would reboot all of our currencies, satisfy our obligations and create an economic revolution for our World.
This could work, so long as we never again fall trap to debt and maintain the constraints of THE GOLD STANDARD.
Be the first!