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Back when I was in school, I could never figure out why Andrew Jackson was
so opposed to having a central bank - today we have the Federal Reserve,
and other countries have central banks. It seems the modern thing to do.
So, I want you to take a good look at the confederate five I inherited.
Around 1861 it bought just about the same amount of goods and services as
a United States five. By late 1864, going into 1865, it bought about what
a US nickel bought.
All governments finance their operations by taxation, borrowing, and
theft. By theft, I mean what is politely called currency manipulation. How
this works is that the Central Bank issues more cash than the government
can back with taxation and borrowing. The result is that the buying power
of money is reduced. Because its buying power is reduced, your savings
lose value. The result is that your savings are stolen at government
gunpoint.
A democrat friend of mine, thinks I am nuts! He argues that inflation is
the natural way of life. This is because our Central Bank the Federal
Reserve has carefully held down their theft of your savings to a point
where it is only noticable over time. Check out how much your dollars
bought in gold twenty years ago versus what the same amount will buy now,
and you will learn that forty percent of your savings vanished in the
government ponzi scheme of money backed by nothing more substantial than
political promises.
My friend is wrong. I want you to look up the facts for yourself, and when
you do you will find that in the 184 year period between 1789 and 1973,
the dollar went from 20 to the ounce of gold to 40 to the ounce of gold,
and in that time the cost of living doubled. Then check out the rise in
gold to the dollar, and the rise in the cost of living in the time from
1973 to today. A simple hint, in 1973 it was possible to buy a solid
suburban three bedroom home, buy two cars, and keep a family of four on
ten thousand dollars a year.
The Federal Reserve serves as our Central Bank, except that the decision
making process is secret, even from Congress. The regional directors meet
to decide what policies they will follow; or, put another way, they meet
to decide how big a theft of our savings the people will stomach.
No matter how frugal you are, it is the policy of the Federal Reserve that
determines what the value of your savings will be when you retire.
There has been a one to one relationship between the price of an ounce of
gold and the price of an average acre of farm land, since statistics have
been available. Gold and land both maintain their stability over time.
Because it is hard to transport your land, you should have the right to
keep your savings in gold and silver backed securities and coinage, if you
wish to do so. The government quit backing the dollar with silver coin to
make it easier to finance their little wars, and pet social projects.
Sound money policies force the government to act in an economically
responsible manner.
It is just that simple. |
