Thursday, March 28, 2013

Currency, Government Slavery

A few days ago I wrote about different ways the government keeps us in slavery and as I pondered this it dawned on me our monetary system is another form of slavery.
 You may think that having a good supply of money is a hedge against any form of 'slavery' because after all if you can go places and have things you are not enslaved and while that may sound good on the surface it is not totally true. Our current monetary system is much like the old 'Company Store' the miners had where the 'company' issued tokens or 'money' as payment for work which could only be used at the company store and the mine owners set the value of the currency, and so it is today the government gives us their currency and they set the value by deciding how they think our economy should be structured either by printing more money and devaluing it or setting interest rates etc. It is all a very complicated system of taxes, fees, bank regulations, min.wages, trade balances, printing, government spending.....the list seems endless.
The Government knows that if we have to use their "legal tender" they can control us through taxes and fees, even if we keep it in banks they have control over those as well via regulations. It is all a clever design to have control and power.
At one time our currency was based on a 'gold standard' which means our coins had silver or gold content and our paper money could be redeemed for gold and silver as well but that is not so any more, the government had the bright idea in the 1960's to do away with that standard and set our monetary values at whatever they say it's worth and we all know how good their word is.
I have used this example before but it still makes a point of how this has worked out for us. In 1960 (when quarters had silver content) you could buy a gallon of gas with a quarter, however the government said that it wasn't necessary to have a gold standard anymore because they would look out for us and regulate the value of currency (interpret, control us and the money) so through manipulation of the markets and money value (buying power) we now have gas around $3.60 per gallon. We bought into their cleverly devised scheme to 'spread the wealth' and thought it didn't matter but the heat was gradually being turned up on the frogs and through inflation we are at this stage and because the more you earn and spend the more taxes you pay the government was the big winner especially considering the government still has all the gold they once had backing the dollar.
 Here is the big kicker, if you had saved your quarters back then (prior to 1964) and put them in a safe you could today go to a coin shop and cash each one in for $5.17 at today's silver prices and guess what you could still buy a gallon of gas and have money left for a cup of coffee, so you see how the government has 'helped us out.'
Bottom line is money saved in the form of gold and silver is the best hedge against not only inflation but freedom against government control and taxes because if you had saved gold and silver back then gas would in effect (along with most everything else) be cheaper today. The reason gas costs $3.60 a gallon is because the money we are using is not worth near what it used to be not because oil has more value.
The moral of today's story........ Less government means more freedom, always has always will.


  1. As you well know since we've spoken of this topic many times, I agree. The dollar died August 15th, 1971 when Richard Nixon took us off the gold standard. Snatch any pre-1965 (1964 coins still held silver) and pray for the best. Keep physical possession of all your bullion.

    1. Here is why you should always keep your own bullion. If it isn't in your possession, it really was never yours to begin with.

      These people paid a bank to store their gold and now they cannot get it out.

  2. Stephen, good advice, any savings in gold and silver is worthwhile.

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    2. Sorry Duke it's a bad spelling day. I hate looking illiterate.

      Here are a couple of quotes to add to this. I'm not sure who authored the first.

      "Folks will spend all the years of their lives toiling away for scrip and not an hour to ponder its worth?"

      For those who don't know what scrip is, it's the kind of money Duke was referring to above regarding the mines and the "Company Store".

      And the second quote:

      “All the perplexities, confusion and distress in America arise, not from defects in their Constitution or Confederation, not from want of honor or virtue, so much as from the downright ignorance of the nature of coin, credit and circulation.” –John Adams

      I think if he were alive today he might rethink the "honor and virtue" part, but he was dead on with the rest.

      People don't understand how the monetary system works.

      Being ignorant now about how our money system works is akin to playing with fire. At some point, you will get burnt.

  4. Matt, very good points, if people REALLY understood how unstable their currency was it would scare them into precious metals.

  5. Excellent points, and definitely 'help' we could do without... sigh

    1. Old NFO, It doesn't have to be so glum if we just understand the market system and work to slowly transfer some into gold and silver assets.