For 179 years, America’s currency was backed by silver and gold. During this era of sound money, the rise in the over-all prosperity of the citizenry of the United States was meteoric. The poorest immigrants enjoyed upward economic mobility. If you are wondering why living standards for most Americans are now declining, look FIRST to the Federal Reserve’s debasement of the U.S. dollar.
Until 1971, the dollar was real money because it represented tangible value. Today, the dollar has no intrinsic value; it has been a “fiat” currency since gold-backing was completely removed Aug. 15, 1971.
The U.S. paper dollar once had a reputation for being “as good as gold.” This $1,000 bill was as good as gold: “One thousand dollars in gold coin payable to the bearer on demand.”
According to U.S. law , one dollar was equivalent to 1/20th ounce of gold. Before the dollar was debased, it was possible to exchange paper dollars for gold dollars at the bank. Anyone could have exchanged a $20 bill for a $20 Gold Piece [1933 $20 coin below]:
Today, the price of a $20 Gold Piece [above] is more than $1,320. Compared to the ounce of gold in the $20 coin, twenty paper dollars have lost more than 6,000% of purchasing power in 83 years. A gold dollar [$1 coin below] can purchase about 68 times more in goods and services than the paper dollar in your pocket!
Before the U.S. dollar was debased, each $1 coin contained
.04375 Troy oz of pure gold or .7734 Troy oz of pure silver.
FEDERAL RESERVE DOUBLE WHAMMY
From 1792 until 1971, the value of the U.S. dollar was stable throughout the world. Today, printing-press-money is punishing holders of U.S. Treasury Bonds in two ways: The dollar is continually losing purchasing power; and people cannot earn enough interest on savings to compensate for the loss in value. The Federal Reserve is punishing savers by keeping rates near 0%.
Artificially low interest rates are made possible by massive money printing. In today’s “globally synchronized environment,” financial repression is coordinated. In Europe and Japan, savers are taxed on their bank deposits with negative % interest rates!
Credit FROZE worldwide in 2007. The Federal Reserve ‘papered over’ the crash with HYPER-CREDIT [national and international bailouts]. Since the beginning of the global debt-crisis, U.S. debt has almost doubled!
We named our website “YouShouldBuyGold.com” because the life-span of fiat money [currency backed by nothing] is predictably short. The French philosopher Voltaire wisely noted that all fiat currencies end up returning to their instrinsic value: ZERO.
Look at the numbers. The dollar has lost tremendous purchasing power since the green-back’s tie to gold was severed. Before money-printing shifts into high-gear, exchange paper dollars for physical gold coins and real silver dollars [new coins below contain exactly 1 Troy oz of silver or gold]:
Submitted by Denise Rhyne
“Inflation: An increase in the amount of currency in circulation, resulting in a relatively sharp and sudden fall in its value and rise in prices. The rise in prices is caused by an increase in the volume of paper money issued.” Webster’s New Twentieth Century Dictionary, George W. Ogilvie, USA, 1904.
Gold-backed [or silver-backed] currencies are called “hard” currencies. A “fiat” currency has no intrinsic value. Now, for the first time in history, not one national hard currency exists anywhere in the world. PHYSICAL gold and silver coins are the only available real money.
In the past, the existence of national hard currencies discouraged nations with fiat currencies from wildly inflating their money supplies. Nations with hard currencies kept countries with fiat currencies honest. When nations debased their money, people could flee from the fiat currencies, and flock to available hard currencies. That changed with the bombings of Iraq and Libya [U.S./ NATO invasion of Libya, March 19, 2011]. Gold, the Petro-Dollar & US Foreign Policy
Most U.S. government spending is financed by an exorbitant tax levied on everyone. This includes the poor, wage earners, retirees, investors, manufacturers, business people, and savers. Most of them just do not know it: The Invisible Tax.
In 45 years, the U.S. economy has been fundamentally transformed by agencies of the United Nations: America’s Fundamental Transformation.