The fight against the use of silver and gold as money that has been waged by bankers and politicians since the 1870’s for silver and the 1930’s for gold. This fight will intensify as fiat currencies collapse throughout the world If you won’t aware of this, let me be the first to say that this fight is ultimately directed against America’s national independence, her constitutional government, and every common American’s individual liberty and prosperity.
The Constitution of the United States adopted a monetary system consisting of silver and gold coin, in which the standard is the “dollar,” containing 371 1/4 grains (troy) of fine silver, with the values of gold coins to be measured in “dollars” according to the free market’s rate of exchange between silver and gold. Neither the general government nor any state is authorized to emit paper currency. The US dollar is paper “fiat” currency.
These restrictions prevent rogue public officials from turning public debts into currency, as a means for redistributing wealth from society to political elitists and their clients in special-interest groups. The Federal Reserve Act of 1913 changed these restrictions.
In addition, the Constitution does not mention banks, either public or private, its only correct construction requires separation of bank and state — extirpation of all inherently fraudulent fractional-reserve banking schemes — and rigorous regulation of all other fractional-reserve arrangements that might operate fraudulently. (See Edwin Vieira Jr., “Pieces of Eight: The Monetary Powers and Disabilities of the United States Constitution,” second revised edition, 2002.)
But since the early 1800s and after 1913 these rogue politicians and bankers have steadily subverted the Constitution by forging an increasingly tight relationship between bank and state. Through the grant of one abusive special privilege after another, politicians have immunized fractional-reserve banking against the just economic and legal consequences of its own inevitable failures. With this power, public officials and bankers could turn both public and private debts into currency — thus separating the supply and the purchasing power of currency from the economic discipline of the free market, and rendering those matters largely political in nature.
Under the Federal Reserve System, Americans no longer enjoy “money” in the economic sense but are subjected to what must be denoted as “political currency,” with emphasis on the adjective. Political currency or fiat currency is emitted on the basis of political debts –that is, either 1) public debts or 2) private debts for the payment of which the creditors expect public bailouts if their debtors default.
Unfortunately, the Federal Reserve System is inherently unstable, and must lurch from one self-generated crisis to another, each increasing in severity, until its house of financial cards self-destructs. At that point, the system needs to be replaced with a similar unstable system and the process beings a new cycle. Have you heard of the “Amero”? The new currency (fiat) that will replace the US dollar, Mexican Peso and the Canadian dollar are the new North American Union currency. 2010 is the magic year folks and no one in Washington cares.
You have to understand that in order for this scheme to work, the powers on Wall Street want the American public to use the system. The fiat currency system only works (profitable) if more debt is created. These individuals will benefit from the system by continuing to loot society. The supply of political currency must expand with no limits for maximum profits for bankers and Wall Street. For this supply (paper currency) to expand, political debts must increase.
True enough, political debts can increase, even geometrically, because political currency can be created (as the saying goes) “out of nothing” to float them. But real wealth cannot be generated simply by the emission of paper promises. Neither can new paper promises pay off old ones.