Merriam Webster’s fourth and fifth definitions of a standard are as follows:
4: something set up and established by authority as a rule for the measure of quantity, weight, extent, value, or quality
5a : the fineness and legally fixed weight of the metal used in coins b : the basis of value in a monetary system the gold standard
Let’s imagine for a moment that you go to the store to buy a special dinner for your family. You decide on steak as the entree. You ask the butcher to give you four 16 oz. New York cuts. He wraps them up, and you check out at the register where you pay $24.00 a pound times four pounds. When you get home, you have a sense that the steaks you bought are not really 16 oz.’s. You get out your own scale and weigh them, and they are only 14 oz.!
That butcher ripped you off, and you rush right back to the store to show him. He puts the steaks on his scale, and shows you where they weigh 16 oz. each. Now, you’re flustered, so you go grab a 1 pound coffee can and bring it back and have him weigh that. The one pound coffee can weights 14 oz.! The butcher’s scale has been rigged, and the jig is up. The butcher apologizes and says he’ll have the scale calibrated, and in the meantime, he gives you a 2 oz. credit on each of your steaks.
What’s wrong with this picture? Trust has been broken! Will you have to double check your butcher every time you go buy meat? What about other scales; are they rigged too? Our economy and every day business activities depend upon good faith and honest dealings. The previous post deals with the Federal Reserve, and you should look at the 7 minute video.
The Constitution defines money, and here’s the law:
Coinage Act of 1792
Our Second Congress (1791-1793) then implemented the Constitutional requirements by passing the Coinage Act of April 2, 1792. It established the U.S. Mint and defined and “regulated the coins of the United States.” (The complete Act can be found on the Internet at: Coinage Act 1972). Black’s Law Dictionary at the time defined “regulate” as meaning “fix, establish, or control.” The Act established or defined the “dollar” as a weight of silver (371.25 grains (troy) of fine silver) and then regulated the value of gold coins to it in a 15 to1 ratio, that is, as 15 grains of silver to every grain of gold. The regulation also included establishing the purity and the various denominations. (Thus the Coinage Act gave the new nation three gold coins (the Eagle or $10 gold piece, Half Eagle and Quarter Eagle); five silver coins (the Dollar, Half Dollar, Quarter, Dime (originally spelled Disme), Nickel (or half Disme); and two copper coins (the Cent and Half Cent). This is Constitutional money. Moreover, the Act provided all citizens access at the Mint to coin their gold, silver, and copper (free coinage) and established any debasement of the coinage as a capital offense!)
Paper money of course has taken over because of ease of use. Paper money is fine if you can always exchange it for a consistent weight of gold or silver backing. In that case, paper money is money. If there is no backing, then what you have is a money substitute which is called a “currency”. Carrying around heavy gold and silver coins is a burden. So our country had paper money issued, but it had to be backed by gold and/or silver. As recently as the 1970’s, you could go into any bank in America with a one dollar U.S. Treasury Note, and exchange it for a single U.S. minted silver dollar. Now, you can go to any coin dealer in America, and you can exchange 20 Federal Reserve Notes for a single U.S. minted silver dollar.
What happened you say? The gold and silver backing of our currency was eliminated. The Constitutional definition was no longer in play. Watch the video on the previous post for a brief history. You see, the central banksters can print paper and all the 0’s they want, but they can’t print gold and silver. They require work and the expenditure of time and effort to produce.
So, the bankers print money like it’s going out of style, and their brand may just do that one day. No paper currency in the history of the world has ever survived once the gold and silver backing was removed – they’ve all gone to 0. Gold and silver backing keep the paper and the bankers honest. Honest economics is no longer taught in school, so people don’t understand basic principles of supply and demand. If the money supply is fixed, then prices remain fixed. If the money supply is increased, but there is no increase in the supply of goods and services, then prices go up. If the increase in the money supply only goes to the bankers and their buddies, then the average man gets poorer and poorer. You could rightly say that they are stealing from the average man.
Money, government, and commerce are all moral issues. The problem in America today is that there is no STANDARD of morality, and so we see not only our currency being devalued, but we see our entire way of life being devalued. How else can you explain that we have fiat currency, homosexual marriage, trans gendered bathrooms, rampant heroin addiction, AIDS, and numerous other declines in our society? So, what should the moral STANDARD be? Should it be fifty percent plus 1 in a majority vote? They did that in NAZI Germany, and it didn’t work out too well. Should it be survival of the fittest? We already have that, and it doesn’t seem to be working out too well. So, what is a reasonable solution? Objectivity would be a big help, and that means an outside force that has no bias in favor of the bankers, or the masses, or the business men, or the politicians.
Who, or what might that be? The solution is as old as the hills. Let’s restore Biblical morality and precepts for our government, our money and our behavior. Oh, but now you’re shoving your morality on someone. No, it’s God’s morality, and He created us, so it’s within His purview to dictate it to us, and besides, it’s for our own good!
Pensamiento Peligroso writes the truth as he sees it, and if it upsets you, then it makes you think!