Our ‘Dollar’ is Called Our Monetary Unit – But What Does The ‘Name’ Denote Today?
Monetary history is mostly a ‘word’ game which keeps the unaware in a mental fog. Let’s review some reality for understanding!
The word ‘dollar’ (which later became the American ‘dollar’) originated mostly with Thomas Jefferson prior to this ‘name’ becoming our official currency unit. Yes, our Continental currency also used the ‘name’ dollar even though most people called this paper unit the Continental. Also, the Spanish silver coin was sometimes referred to as the Spanish ‘dollar’ as well as ‘ the piece of eight’. So words and ‘names’ can be used in various ways to create images in our mind. And images in our mind can enlighten and also deceive. Let’s just review a few of the different meanings which people and authorities have given to the ‘name’ dollar.
1. this name ‘dollar’ starts out (prior to 1792) as a unit of one’s consciousness (a notion of one’s mind) with no special meaning or existence. Thomas Jefferson’s mind was primarily the source of this word which eventually became our official currency unit. Others who agreed with Jefferson were Alexander Hamilton and eventually our entire United States Congress.
2. then the name ‘dollar’ denoted a specific weight of silver in 1792 via the Coinage Act of 1792. The Coinage Act was the official legislation which established our ‘dollar’ as our reference currency unit. The ‘name’ dollar then was defined and it became precisely 371.25 grains of pure silver minted into a coin and stamped with the ‘name’ dollar. The minting and stamping of a coin made from mostly silver created the currency unit which we have called by the name ‘dollar’ from day one.
3. since the ‘value’ of silver when compared to gold had a ratio of 15 to 1 in 1792, and since gold was also officially declared ‘money’, the name ‘dollar’ also had an official definition of 24.71 grains of pure gold…and thus the name ‘dollar’ denoted also a weight of gold. Gold coins were minted and then given a ‘value’ based on their gold content (by weight). This ‘value’ was calculated by using the official definition of the word ‘dollar’ as defined in the Coinage Act of 1792. If we divide 371.25 by 15 (the silver/gold ratio) we end up with 24.71 as the result. The magic of math works for calculating units of value. Notice that our Congress was given the authority by our Constitution to regulated the VALUE of our currency unit (Article I, Section 8).
4. later in our history the supply of silver increased relative to gold and the ratio became 16 to 1. This change was instrumental in the eventual demonization of silver as our official currency unit and the establishment of gold as the official standard for the name ‘dollar’. This meant that the official name ‘dollar’ now denoted 23.71 grains of gold by weight. Again, the name ‘dollar’ had a precise definition and denotation. Our Congress changed the meaning of the word ‘dollar’ via this new definition.
5. then in 1934 there was another change in the official definition of the word ‘dollar’ when FDR and his administration redefined the ‘name’ dollar to 13.71 grains of pure gold and/or $35/ounce of gold by weight. Congress again exercised their authority to ‘regulate’ the VALUE of our currency unit via their authority given by our Constitution. The official change, however, was meant only for foreign holders of ‘dollars’ and not American citizens. Americans were forced to accept a paper note with no VALUE as their official currency unit. This change also created two meanings for the name ‘dollar’. One meaning for Americans and another meaning for foreign holders. Confusion started to develop over what the word ‘dollar’ meant and what it denoted.
6. then another change occurred in 1971. Our then President Nixon and his advisors decided to officially drop the convertibility of our ‘dollar’ into gold (at $35/ounce) that was given to foreign holders during the Bretton Woods Agreement. This change was viewed by many as the Nixon Shock and this official decision meant that the word ‘dollar‘ had another meaning. The new meaning was called a fiat ‘dollar’ (merely a paper note) with no convertibility into any tangible commodity (gold or silver). So now our Constitution (Article I, Section was completely violated by this decision as there was no option for our Congress to ‘regulate’ the VALUE of this new ‘dollar’. The ‘name’ dollar became merely a ‘number’ (1.00), a ‘symbol’ ($), and a ‘name’ (dollar)…printed on paper and distributed as a paper note.
7. then in the late 1980′s and early 1990′s a new technology emerged called the electronic computer. This technology allowed our ‘dollar’ to become merely a ‘digit’ within the computer screen (a virtual electronic phenomena within Cyberspace). Gradually, all the currency units in circulation were being transitioned from paper to virtual digits (again with no official authority that corresponded to our Constitution or the Laws of our Nation). Today (2012) some 96% of all currency transactions are executed via computers (and within the virtual environment of the computer screen). Consumers now use mostly credit (really ‘debt’) cards for most of their financial transactions. Investors now buy and sell stocks, bonds, and most financial instruments via the computer screen. Lenders, traders, speculators now execute most of their monetary transactions via their computer platforms (within their computer screens). And our Central Bank (the Fed) now creates virtual digits (called ‘dollars’) via the computer screen. Can you imagine the new meaning which our ‘dollar’ now creates in the mind’s of everyone (as they become AWARE of all these changes in meaning)?
8. finally we now have a FED (our Central Bank) which has adopted a philosophy called QE (quantitative easing) which is a type of official ‘counterfeiting’ of our ‘dollar’. This process consists of mostly our FED Chairman (Ben Shalom Bernanke) thinking up new units of currency within his CONSCIOUSNESS (also called one’s mind) and then typing NUMBERS (derived from his thinking) into his trading desk computer at the NEW YORK FEDERAL RESERVE building to increase his checking account (called the SOMA) by billions and trillions (still called ‘dollars’ and also promulgated as official ‘legal tender’). What does this mean for our currency unit still called ‘dollar’? We now have a ‘dollar’ which is created from ‘nothing’ (the consciousness of Ben and his committee with no ‘material ‘ substance). What does this suggest as a meaning for the name we call ‘dollar’? Can you discern that our money system is now corrupt and totally UNCONSTITUTIONAL? The entire operation is now a ‘private’ system controlled by ‘private’ interests (a dictatorship of the people for the benefit of the 1%). Is this the American Way?
Let’s review. Our ‘dollar’ started as an ‘idea’ of the mind. It then became a ‘name’ for a material thing (silver). It then changed to another material thing (gold). It then became mere ‘paper’ in 1934. Then in 1971, it became a ‘number’, ‘symbol’, and ‘name’ (mostly on paper). Then in the 1980′s and 1990′s it became a ‘digit’ within the computer screen (virtual reality). Then with the CRASH of 2008 the FED started a program called QE. This operation initiated the official counterfeiting of a digital unit (still called ‘dollar’). Today, we have mostly a digital (virtual) unit which is created ‘out of thin air’ (more precisely ‘out of nothing’). This unit (still called ‘dollar’) is now a ‘name’ within the consciousness of those who create this unit…mostly Ben Bernanke and his Committee called the Federal Open Market Committee. Is any of this REAL? or is this entire system an illusion of the MIND?
Conclusion: Our entire monetary system has evolved into an ILLUSION of our minds. Our currency unit (still called ‘dollar’) is NOTHING AND NO WHERE! Can this type of ‘illusion’ continue going forward? I don’t think so! Money must fulfill a purpose and role that contributes towards the creation of material WEALTH. Creating ‘imaginary’ money and pricing products with this ‘imaginary’ unit will DISTORT all values and prices in time. Just watch the electronic SCREEN and then ask yourself: AM I LIVING AN ILLUSION? You know my view! Enjoy!