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 paper dollar was real money because it represented tangible value. Today, the U.S. dollar has no intrinsic value; the dollar has been a “fiat” currency since gold-backing was removed in 1971.
There is a good reason the U.S. dollar once had a reputation for being “as good as gold:” It was as good as gold! See U.S. $1,000 bill above: “One thousand dollars in gold coin payable to the bearer on demand.”
From 1792 to 1933, one dollar was equivalent to 1/20th ounce of gold. In 1933, a U.S. $1 bill was equivalent to .04374 Troy oz of gold [that is how much pure gold was in a U.S. $1 gold coin]. Today, the gold dollar [below] can purchase about 68 times more in goods and services than the paper dollar in your pocket!
In 1933, anyone could have exchanged a $20 bill for a U.S. $20 Gold Piece below. The price of a U.S. $20 Gold Piece is now more than one thousand three hundred U.S. paper dollars. Compared to the ounce of gold in a $20 Gold Piece, twenty paper dollars have lost more than 6,000% of purchasing power in 80 years.
The purchasing power of the gold-backed dollar was remarkably stable from 1792 until 1971. Before the dollar’s tie to gold was severed , you would have needed only fifty paper dollars to buy a 1-ounce $20 Gold Piece. Today, you would need almost thirteen hundred paper dollars to purchase the same ounce of gold. Compared to gold, the dollar has lost about 2,600% in purchasing power since 1971. After 46 years of money-printing, the $20 gold coin can purchase about 26 times more in goods and services than a $20 bill.
FEDERAL RESERVE DOUBLE WHAMMY
Printing-press-money is punishing savers in two ways: The dollar is continually losing purchasing power; and people cannot earn interest on their savings. The Federal Reserve is engaging in financial repression. Central banks around the world are punishing savers by keeping rates at near 0% [negative % interest rates in Europe/Japan].
Since the beginning of the worldwide credit-crisis , the national debt of the United States has almost doubled. We named our website “YouShouldBuyGold.com” because there is only one possible outcome to this money-printing insanity. “Fiat” currencies always end up as worthless pieces of paper [there are no historical exceptions]:
‘Paper money eventually returns to its instrinsic value — zero’ [Voltaire]. While you can, exchange paper dollars for actual gold coins and real silver dollars.
Submitted by Denise Rhyne
Currency with no intrinsic value is called “fiat currency.” Gold-backed or silver-backed currencies are called “hard currencies.” 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]. 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. 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.
“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, unabridged, George W. Ogilvie, USA, 1904.
In 45 years, the U.S. economy has been fundamentally transformed by agencies of the United Nations: America’s Fundamental Transformation.