Money – A Tale of ‘Four’ Dollars
Four USA ‘dollars’ since our Founding: Silver Coin, Paper (with backing), Paper (no backing), Computer digits (imaginary)!
Our monetary system started with the Coinage Act of 1792. This Act created our first American Dollar (a Silver Coin). This ‘dollar’ was then precisely defined (371.25 grains of pure silver) and our mint then created coins for the marketplace. The ‘mind’ behind our ‘dollar’ and its meaning was Thomas Jefferson. Thomas Jefferson understood that we needed a sound monetary unit (dollar) that had the confidence of the general public and traders in the marketplace. He had observed the collapse of the paper Continental and many of the other paper currencies created by our 13 Colonies. Thomas along with many other of our Founders concluded that America needed a monetary unit that was physical and which was viewed as containing ‘value’. After his review and observations of prior Colonial history, Thomas concluded that a silver coin similar to the Spanish Milled Dollar was right for America going forward. Our first ‘dollar’ emerged from this history.
Our first ‘dollar’ of silver created a dynamic marketplace for future economic growth (1792 – 1933). As time continued Americans recognized the value of having a physical dollar of either silver/and or gold. Both silver and gold played a role in our economic growth and prosperity. During brief periods of our history alternative currencies were declared to be legal tender along with silver and gold. The Greenback currency of 1862-1879 was one of these paper fiat currencies that gained confidence during and after our Civil War period. There were also National Bank notes that gained confidence in the marketplace as they were ‘backed’ and convertible into silver or gold at the bearers discretion. Money that gave confidence to traders and savers needed to have some actual ‘store’ of value potential. Paper with the option of convertibility provided this confidence.
After our first Great Depression period following 1929, a decision was made to eliminate gold coins (as circulating tender) and gold clauses from all American contracts. Franklin D. Roosevelt and his advisers made the decision to allow our Federal Reserve Bank to print fiat paper dollars without any backing or convertibility. This decision was mandated by executive order and then upheld by our Congress as of 1934. Gold was eliminated as official legal tender and a fiat paper dollar became our official monetary unit. Silver certificates continued to be accepted as legal tender (with convertibility) until 1968. The use of a fiat paper dollar (without any backing) was mostly accepted by the American people and it created confidence as America was the most prosperous and growing economy on the planet. Paper was viewed as acceptable and this decision of F.D.R. did lead to substantial growth for a time (1934-1973).
The final dollar concept which emerged with the digitization of money (1998 and after) is our current imaginary dollar. This dollar is virtual and is created by typing numbers into the Federal Reserve Checking Account (called SOMA). Since abstract ‘numbers’ are mere psychological phenomena, this dollar is subjective and is created from the consciousness of those within the Federal Open Market Committee (FOMC). Since 1913, with the passage of the Federal Reserve Act, our Federal Reserve System has evolved into a PRIVATE corporation, administered by select elite policymakers. The Fed (as it is called) now has their own ‘private’ checking account (the SOMA) which they can manipulate at their will (and which is not part of our National Government accounts).
To date, our dollar unit has declined in value some 95% since this organization obtained control over the American dollar (in 1913). This ‘private’ organization was permitted to evolve due to special legislation which a select group of bankers and congressmen devised at Jekyll Island, GA. in 1910-13. These bankers have now usurped the Congressional prerogative over our money unit as spelled out in our Constitution, Article 1, Section 8. This means that our Government has no ability to over-rule the decisions of this organization in real-time. Since the financial crisis of 2008, this organization has created ‘trillions’ of digital dollars to protect their vested interest in our money. Most Americans, being uneducated on money, are unaware of all this history.
The coming crisis involving our money and the Fed is likely to continue as financial conditions worsen in future weeks, months, and years. The Fed is likely to protect their huge investment in Central Banking and their Wall Street friends, at the expense of the American people and their interests. As more Americans become educated on all the changes which have occurred (especially since 1971), however, a money revolution is likely to emerge. We could see the beginning of this revolution in 2013. Digital money is Virtual money and Virtual money is Imaginary money. Imaginary money is Subjective money and Subjective money is derived from Consciousness (the mind). This means that all ‘values’ today should be viewed as Subjective and Imaginary.
Prices should be viewed as Subjective and Imaginary. Bernanke and his QE polices should be viewed as an operation which creates Imaginary money. Think about the money you now observe within our Computer Screen (all virtual digits). Can you touch, feel, taste, or smell this money? Where does this money come from? Who gets first use of these new ‘dollar’ creations that our Fed’s QE policies administer? Where is Digital money leading as the markets become more Centralized and computerized in 2013.
Could we witness an attempt by these Central Bankers to create a ONE WORLD currency with a ONE WORLD central bank? It makes a lot of sense given current trends. Keep watching the actions of our Central Bankers going forward. Will our Fed (watch the FOMC actions and decisions) attempt to merge with other Global Financial entities to further this Global Centralization? If the stock markets should collapse or crash in 2013-14, we could witness this transition to a Global Central Banking operation. Think Digital money going forward and think digital Manipulation of this digital unit! Also, try to focus on the subjective/imaginary nature of our money unit today!
See this website for our Digital (imaginary) DEBT that has accumulated (mostly since the closing of the ‘gold’ window in 1971): www.usdebtclock.org. Note that our National Debt now exceeds $16 trillion and our overall Debt is over $122 trillion. Watch the markets for signals as to the coming economic crash: http://kingdomecon.wordpress.com.