Why Gold is True and Honest Money
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Currencies in today’s global monetary system ebb and
flow like anchorless buoys floating on a sea of surging
currents. Some currencies rise in value while others fall
in value…only to then rise and fall in value again.
Meanwhile, as currencies change in relationship to each other,
prices of services and goods, as measured by each individual
currency, change too.
This disconcerting condition requires prudent money
managers to continually buy and sell currencies and commodities
just to protect the principle value of their capital.
Speculators, recognizing this ever changing dynamic, also
undertake the buying and selling of currencies and commodities;
only they leverage their trades to exploit these price
differentials for profits. All this activity further
perpetuates global monetary instability.
Yet the general population, and in particular those
living on fixed incomes or paycheck to paycheck, are powerless
to the effects of changing prices that result from ever changing
currency values. For such individuals, the problem of
floating currencies concerns every aspect of their lives.
To understand how this problem came to be, and more
importantly, what you can do about it, we will start with the
seemingly simple question: What is money?
If you were to ask someone 100 years ago: What is
money?
They would reply: Gold.
If you asked the same question 200 hundred years ago
the reply would be: Gold.
And if you asked the same question 1,000 years ago, you
would get the same answer: Gold.
But if you asked someone today, the question: What is
money? They would generally look perplexed. And the
responses offered would vary widely. One person would say:
Dollars. Another would say: Euros.
Another would say: A promissory note. And still
another would say: Available credit or purchasing power. Are these
bad answers? Are they wrong? Let us explore.
We know that money is an essential part of human
civilization. It facilitates commerce between individuals and
businesses, and trade between nations. It advances markets
beyond barter and serves as a means for the accumulation of capital.
William Stanley Jevons, in 1875, stated that money has four
functions – it is a:
1. Medium of exchange
2. Common measure of value
3. Standard of value
4. Store of value
Today’s money falls short in its function as a store of
value.
If you consider just the dollar, it has lost 95-percent of
its value in less than 100-years. And many other currencies
that were around 100-years ago, no longer exist. In other
words, they became worthless.
But then the concept of money has been distorted over the
last hundred years too. Rather than cash in hand, it is now
cash flow. Rather than available savings, it is now available
credit. Rather than pay as you go, it is buy now pay later.
And rather than wealth accumulation, it is ability to service debt.
In effect, money has lost its integrity. It is no longer true
and honest.
Here is why…
Today’s money is not true and honest because it does not
provide a firm baseline for measuring the price of goods and
services.
When a carpenter measures the length of a cabinet as being
three feet, he is certain that the length measured as three feet
will always be three feet. To the contrary, when a shopkeeper
prices a 24-ounce loaf of bread at $3.29, he is not certain that the
value of one loaf of bread will always be equal to $3.29. In
fact, in 1971 he would have valued three 20-ounce loaves of bread
equal to $0.89.
Has the usefulness of a loaf of bread, on a per ounce
basis, really changed 826 percent?
Certainly not. Rather, the baseline used to measure
the value of a loaf of bread has changed. It is true that
prices of individual goods and services will fluctuate to account
for natural changes in supply and demand, but when money is anchored
to a stable baseline, overall prices will by and large be stable.
Money, as a store of wealth, is also a store of an
individual’s time and industriousness. When a person goes to work
to earn money they are trading their time for that money.
Would not they rather use that time to be with their family or to
engage in hobbies or recreation?
Indeed yes. But they have made the decision to earn
money today, to provide greater security, and to possibly store up
some of that time for use at a later date. When money is not
true and honest, when it loses value over time, it not only robs a
person of their savings, it robs them of their time and, in effect,
their life. Also, because it is not true and honest, it spoils
the notion of ‘an honest days work for an honest days pay.’
For money to be true and honest it must be a store of
value. In other words, it must retain its value over time.
It must not rely on governments to fix its price or to determine its
circulating quantity. It must not be borrowed into existence
or created out of thin air. And it must exact discipline from
the public, from governments, and from bankers.
Governments generally abhor true and honest money because
it demands true and honest limits to their size and power. True and
honest money does not allow for massive deficits or the long term
accrual of debt. Because government spending on lofty programs
and wars is primarily financed through debt, true and honest money
imposes strict limitations on government’s capacity to pursue such
endeavors. With true and honest money governments must be
funded through tax revenues and trade tariffs; government overreach
of these, to their disdain, are readily detected and rectified by
the populace.
It was the desire to increase in size and control that led
the U.S. Government, and all governments that followed, to deceive
their citizens and terminate the use of true and honest money.
The foundation was laid in the
First, in 1933, at the height of the Great Depression, the
U.S. Government, under the Gold Confiscation Act, confiscated gold
money from its citizens and replaced it with paper Federal Reserve
Notes. It became illegal for individuals to own gold, except
for small quantities that coin collectors and dental practitioners
could hold. This alone eliminated the public’s capacity to
hold government inflation of the money supply in check; they could
no longer redeem inflated paper money for gold.
Then following World War II the
Nonetheless, the
By the late 1960’s, with the seeds of the Great Society and
Vietnam War spending sown, expanding world money supplies bloomed
wild price inflation. And then
Since then currencies have floated like anchorless buoys,
rising and falling on a sea of surging currents. And the
imbalances that have resulted in international trade are astounding.
Exports from countries with weaker currencies dominate
trade as their goods are less expensive when priced in countries
with stronger currencies. Services also migrate to countries with
weaker currencies in the phenomenon known as globalization.
Countries with stronger currencies, in turn, import more goods than
they export and run trade deficits. But as a trade deficit
expands, potential instability also expands, as rapid currency
devaluation could occur should surplus countries panic and dump the
excess reserves they have accumulated from deficit countries.
This arrangement of symbiotic disharmony, which underpins
the global monetary system, is incredible. But that is not all
– it gets far zanier…
Countries are now unofficially engaged in competitive
currency devaluation. In this bizarre global monetary system,
countries are fighting for a competitive advantage by weakening
their currency in world markets. Thus, while currencies
fluctuate in relationship to each other, prices of commodities
largely increase, as measured by each individual currency. In
other words, no currency will protect you from the loss of
purchasing power; how much and how fast will your money lose value
is the real concern.
We are currently in the countdown to the launch of mass
inflation – hyperinflation – where prices increase rapidly as the
currency loses its value. At this moment consumer prices are
poised to rocket into orbit.
The emergence of bloc currencies, led by the euro, are
gaining support as a means to encourage price stability within
regional zones of trade. The amero has been proposed as a
possible bloc currency for the North American Free Trade Agreement
(NAFTA) Countries of Canada, the
The emergence of bloc currencies brings with it many
questions:
1.
Are bloc currencies the solution to currency instability?
2.
Will they perpetuate the problem of fiat currencies and
perennial inflation?
3.
Are they just one stepping stone in the move towards a single
global fiat currency?
4.
And how will the individual preserve their liberty in a world
with a single global fiat currency?
At this moment, brought about by years of money distortion,
the world is peering through a window of opportunity, where
adjustment and reconciliation can be realized.
How society restructures its global monetary system is
radically important to all individuals, of all countries, of the
world. And true and honest money – money that is free of
governments and that retains its value over time – is the sole hope
for individuals that desire to prosper in a free and just world.
Gold has offered that hope before, and it can again.
If you are an individual who values independence, personal
freedom, and liberty; who desires the autonomy to prosper in a just
world with limited government intervention. Then true and
honest money should be of utmost importance to you. So what
can you do to help meet that end?
The number one thing you can do is to be informed.
That is to be knowledgeable, educated, and conversant of
the critical importance of true and honest money; and, on the
contrary, to be one of the growing voices of dissent, speaking out
against the deceit and pretense of government manipulated paper
currencies. With just a little research, you will find that
there is a glut of misinformation out there on the subject of money.
That is why it is of great importance to have a foundation rooted in
the best, most enduring philosophical works.
To help you get started on this lifelong and important
undertaking, we have taken courteous care in selecting and compiling
the preeminent historical works of John Locke, John Stuart Mill,
Carl Menger, David Hume, and David Ricardo. To research all
the works of these uniquely prolific writers, and to compile their
best articles on the subject of gold and honest money, would take
years to do. But now you do not have to, because we have
already done it for you.
The result of this painstaking effort is the Five Volume
Series titled, Gold, Markets, and Trade – Why Gold is True and
Honest Money. Inside this Five Volume Series you will find the
carefully selected and finest works of classical economics;
philosophical masterpieces that impart the intellectual foundation
and justification for gold’s place as the world’s exclusive true and
honest money.
It is our opinion that these works have never been as
important to the enduring happiness of mankind as they are this very
moment. And, right now when you order the Five Volume Series
titled, Gold, Markets, and Trade – Why Gold is True and
Honest Money, you will also receive a free copy of a unique
and invaluable Handbook called How To Protect Your Wealth
And Profit During Financial Disaster.
To learn more about this exciting opportunity, visit the
following website:
This White Paper is published by:
Direct Expressions LLC
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