It is time that we demand that our currency returns to a Gold and Silver Standard to finally stop our failing economy. Just as it was done at the founding of our National Currency which kept is strong until the coins and notes we collect lost their true meaning.
Today I was looking at a recently purchased 1928 Gold Certificate PMG 40. I was thinking about how that note at was time a hedge against the incredible inflation that has our United States currency has suffered. It was a piece a paper that was truly converted; to a piece of paper worth much more than the cost of paper that the note was printed on. It was even more than that it was a guarantee that the government could not print that note unless it possessed the twenty dollars in gold that it represented. This is not news to numismatist, or at least I hope it is not news to numismatist. That paper money that was in the form of gold or silver certificates was not money that is faith based.
I personally think faith when comes to my personal belief in God is a great thing. However, a U.S. Govement note that is based on faith to give value as money is a bad thing, and that is what we are exactly left with now. If you are person who thinks they do not know what it is like to have faith or know someone that claims that they do not know what faith is just produce a modern U.S. Federal Reserve Note if it's yourself or the person who claims to have no understanding of faith and ask them if the current Federal Reserve Note has any value. If they say it does then they are exercising faith, pure and simple.
For when the Twenty Dollar Gold Certificate was printed it was done so with the backing of twenty dollars of gold in the U.S. Treasury. The government could not just print money if it did not have the precious metal in reserve to back-up the note. For the possessor of that note could demand twenty dollars or gold in exchange for the note from the government. This form of currency backed by or made or precious metal has survived for thousands of years and was a strong hedge of inflation. Inflation did not climb several percent each year as it does now. Under the Gold Standard it moved in hundredth of a percent if went up at all or even went in reverse.
Our elected officials both and have done us a disservice by putting us on a faith based currency which in turn makes our entire economy based on faith. There have been several examples of faith based economies throughout history and everyone has or is in the process of fiscal oblivion and or failure. We are, whether you care to admit it or not in the very mists of a continuing failure of our current faith based economy. It is the reason why government bailouts and other attempts to stimulate our economy have failed. The citizenry and world have lost faith in the United States. For a while the Euro was doing well for a world that had lost faith in the U.S. economy and thought the European nations that backed up the Euro dollar were worthy of faith. It has come to the attention to the world and Europeans that they deceived each other and out right lied about the financial assets and liabilities of nations that joined and formed the Euro Bank. The truth has started to come out about the reality of financial status of the countries that back up the Euro is even more dismal than the situation in the U.S. and it will correct its self to the point that if the Euro ends up being worth 75% of the dollar would be unlikely; if the accusation of book cooking the countries using the Euro turn to, being allowed in played a type of pyramid scam and there is no one else left to kick in. I should not be surprising to see Euro either exchanged into a new weaker form or fail all together. Sad for Germans that have done so well and made the Deutsch Mark a very strong currency and makes the British look wise in not joining the club and keeping their own national currency.
The point of this all is simply this. A faith based currency is good for governments; it allows them to print money as fast as they can because the reality is it has as much true financial backing as Monopoly money. We must demand that our government place us back on the gold and silver standards. That will turn our economy and currency around and we will see an end to our continuing inflating money. It would stop it and keep the U.S. as the number one market in the world and also turn us back in to an economy that is based on all types of commerce not just the service and consumer economy we live with now. Write your congressman and senator and demand that we be put back on a precious metal standard. This action will save the middle class instead of seeing it get smaller and smaller since the last precious metal backing of the dollar was done away with in the early seventies. For those of you old enough to remember think about what your dollar could buy in 1970. If you are old enough to remember what a dollar could buy in 1932 the last year of the gold standard.
There is something horribly wrong that by leaving my money in a savings account and it will lose value due to small amount of interest paid will not outpace inflation. Moving us back to a currency backed by precious metal will certainly end that, stop the shrinking of the middle class and return those of us that do not get bail outs to a reasonable expectation of obtaining some wealth not just trying lose our wealth.
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