Just Weights and Measures

2009-03-13T22:54:00.001-05:00

If you want to know how wall street got in trouble, remember they do math much the same way as these guys.

5 times 14 =25?

2009-02-23T10:56:00.004-05:00

Reporters or Prophets

MY comments are in DARK YELLOW
U.S. Stocks Advance as Government Pledges More Aid for Banks

By Lynn Thomasson

Feb. 23 (Bloomberg) -- U.S. stocks gained for the first time in six days, extending a global advance, after financial regulators pledged to inject more cash into the nation’s banks to prevent their collapse ( At 10:08 am only 20 minutes after this article was written The NASDAQ was down 14.69 , the S&P was down 1.4 and the Russell was down 3.4.. the DOW was only up 3 POINTS.

Bank of America Corp. rallied 13 percent, Citigroup Inc. jumped 11 percent( perspective CITY GROUP HAD A HGH THIS HEAR OF OVER 27 DOLLARS A SHARE AND WAS TRADING FOR 2.20 A SHARE up .25 cents anyone with an investment in this company a year ago has experienced a -90.849% LOSS) and JPMorgan Chase & Co. added 6.4( A 49% LOSS on the year) percent after officials said the U.S. has a “strong presumption” for banks to stay private even as it prepares to identify companies that need more funds. Exxon Mobil Corp.(-15.152% lossYTD) and Chevron Corp.-19.547%lossYTD) rose more than 2 percent as oil prices climbed to an eight-day high. Stocks in Europe and Asia increased, sending the MSCI World Index higher for the first time in 10 days.

The Standard & Poor’s 500 Index added 0.6 percent to 774.43 at 9:47 a.m.(DOWN3.6 POINTS AT 10:22) in New York. The Dow Jones Industrial Average increased 52.17 points, or 0.7 percent, to 7,417.84( down to 7,356.51 OR -9.16 POINTS AT 10:23)

after dropping to a six-year low on Feb. 20. The Russell 2000 Index climbed 0.2 percent. ( Then fell to 406.51 with a -4.45 LOSS at 10:24 AM)

“They are going out of their way to say they’re in favor of a private banking system,” said Dan Greenhaus, an analyst in the equity strategy group at Miller Tabak & Co. in New York. “Seeing as how the rumors of nationalization didn’t come to pass, people are riding a little high as a result.” The Market had been open for less than 2 minutes this guy had most likely just woke up

The S&P 500 snapped its longest losing streak ( LIE) since October as regulators said they will begin examining which banks have enough capital to survive a deeper economic slump.( NOT TRUE it was DOWN .99 at 10:12 Am) Banks that need additional funds after the so-called stress tests and cannot raise the money from private investors will be able to tap additional taxpayer funds. The capital would be in the form of “mandatory convertible preferred shares” that would be exchanged into common stock “only as needed.”

Worst Start

The S&P 500 last week extended its worst start to a year to 15 percent as President Barack Obama failed to assuage investors by approving a $787 billion economic stimulus plan that combines tax breaks and government spending meant to resuscitate the moribund U.S. economy. Homebuilders and banks retreated even after Obama announced a plan to stem home foreclosures.( TRUE) ( the following is all in electronic trading and was mostly gone when real people showed up by 10:28 in the morning.. Some stayed on but others vanished the point being this reported was giving information aS THOUGH THE MARKET WERE ALREADY CLOSED. using ED endings on verbs rather than ING endings.)

The MSCI Asia Pacific Index increased 0.3 percent today and Europe’s Dow Jones Stoxx 600 Index gained 0.8 percent.

Bank of America climbed 49 cents to $4.28. Citigroup rallied 21 cents to $2.16. At 10:27 THEY HAD DROPPED TO 2.08 JPMorgan, the second-biggest U.S. bank, added $1.11 to $21.01. ( AT 10:27 THEY HAD DROPPED TO 20.93)

Citigroup is in talks with federal officials that may result in the government holding as much as 40 percent of its common stock, the Wall Street Journal said. Executives at the bank would prefer the stake to be closer to 25 percent, the newspaper reported. Citigroup spokesman Jon Diat declined to comment.

Government Efforts

Governments across the world are stepping up measures to stem the worst global recession since World War II. Bank of America and Citigroup have received a combined $90 billion in U.S. aid in four months.

“The government measures will prevent the world from going under,” said Rudolf Buxtorf, who manages the equivalent of $114 million at RBS Coutts Bank in Zurich. “We won’t see a bankruptcy or an even worse catastrophe.” ( Sounds like the CEO of ENRON don't he)

Exxon increased 2 percent to $72.64. Chevron climbed 2.6 percent to $66.73.

Crude oil climbed as the Organization of Petroleum Exporting Countries signaled its resolve to support prices by reducing supplies. Oil for April delivery gained as much as 77 cents, or 1.9 percent, to $40.80 barrel, in electronic trading on the New York Mercantile Exchange.

Bank Debt

The cost of protecting against a default on senior and subordinated bank debt soared to a record in Europe, credit- default swap prices showed. The iTraxx Financial Index rose 5 basis points to an all-time high of 159, while the subordinated index climbed 15 to 315, according to JPMorgan prices.

The U.S. recession will be the worst in more than three decades as job losses mount and consumers and companies retrench, a survey of business economists showed. Billionaire investor George Soros said the current economic upheaval has its roots in the financial deregulation of the 1980s and signals the end of a free-market model that has since dominated capitalist countries.( George Soros also said that the "prevailing world order" was threatened by Iran and Iraq and Venezuela and Russia with high oil prices supporting their plans, with 40 Dollar oil he thinks the prevailing world order can be fixed...OIL is a weapon Soros basically confirms this.)

General Motors Corp. increased 2.8 percent to $1.82. Advisers to the U.S. Treasury have taken steps to arrange loans of at least $40 billion for GM and Chrysler LLC, should the two automakers need the cash, the largest bankruptcy loan ever, the Wall Street Journal reported, citing unidentified people familiar with the situation.(

Ford Motor Co., the second-biggest U.S. automaker, added 6.3 percent to $1.68.

Loews Gains

Loews Corp. rose 2.5 percent to $20.66. The diversified holding company may rally to almost $30 during the next year if financial markets stabilize and the value of the company’s assets recover, Barron’s reported, without citing anyone.

While the S&P 500 is trading close to the lowest price relative to earnings since 1985 and all 10 Wall Street strategists tracked by Bloomberg forecast a rally this year, predictions based on dividends show shares are overvalued by as much as 46 percent. A total of 288 companies cut or suspended payouts last quarter, the most since Standard & Poor’s records began 54 years ago.

To contact the reporter on this story: Lynn Thomasson in New York at lthomasson@bloomberg.net.

Last Updated: February 23, 2009 09:48 EST
XXXXXXXXXXXXXXXX

EVEN WHILE THIS REPORTED WAS POSTING THIS FORBES website was doing the same thing with this head line and link

Street Bolstered By Hope For Bank Aid The market heads higher on possibility of additional help for Citigroup; Ford appears close to an agreement with its unions.

next to a chart that read at 10:52 AM DJIA 7,331.58 -34.09

Nasdaq
1,422.55
-18.68

S&P 500
763.97
-6.08

Russell 2000
404.55
-6.41

All I am asking is " Is this reporting the news or is it trying to create it?"
I By the end of the day the markets may be up or they may be down, but lets not " as a reporter) try to be a prophet..

That's my job... LOL
In Christ
The Preacher

2009-02-20T11:05:00.002-05:00

Peter Shiff, Irwin's son, has said that he is looking for the DOW and GOLD to criss-cross, that is that the Dow Jones Industrial Average will eventually be the same price as Gold and possibly less. ONE ounce of GOLD being- the same as what ever the DOW is, sounded ludicrous at one time and the DOW was 30 times higher than the price of GOLD but now that it is less than 8 times the price with GOLD hitting 1000 and the DOW at less that 7500 Peter is looking pretty bright.

Larry Heim has long predicted GOLD at $3,400.00 per ounce and he was doing so when Gold was only 300. He is and has been predicting SILVER to go to $208.

Last night my wife looked over my shoulder to the computer screen and saw the Price of Gold was down and asked why, I said it was just the over seas markets but watch when New York opens. Wee Gold shot up to 1000 even. The DOW was not open yet but the Asian markets and the European markets were way down, and there was not ONE bit of good news.

Those that had predicted Unemployment to be at about 6% max are staring blankly at 7.6 ( it is most likely really at a REAL unemployment rate of about 14%) Those who I work out with at the gym who are "big traders" all look like they want to hang themselves and they don't talk to me anymore. Even as I type this right now the DOW is in a free fall with headlines like
"Stocks Drop Worldwide on Recession Concern, Earnings; Lowe's Shares Slide" and "J.C. Penney Co., the third-largest U.S. department-store chain, forecast its first quarterly loss in almost five years"..

This is very serious this is global and is the kind of stuff empires are made of on the ashes of chaos.
Latvian Government Resigns as Recession Deepens
Mexico Bond Risk Tops Brazil for 1st Time Since 2001
Brazil’s Jobless Rate Jumps the Most in Seven Years
Russian Spenders Guard Money as Crisis Evokes Memories of 1998 `Nightmare
Fear Rules Asian Investors; Korea Hammered,Vivian Wai-yin Kwok, 02.20.09, 08:20 AM ESTJapan's Topix index declined to 25-year low,.

What is the Obama-nomic solution? Create jobs that produce NOTHING? Jobs that produce jobs and production are needed not JOBS that create a debt with nothing to sell to pay for the debt. Borrowing money to give away things is nothing but a ponzie move without the addition of greed. At least with a Ponzie you have people THINKING they are investing, with this Obama-nomics everyone KNOWS that nothing is being invested toward production. once the bridge is built it will only need more maintenance and will produce nothing in and of it's self to increase wealth.
The great nationalization is underway in the banking industries around the world, they in turn will help "finance" the governments that own them to further nationalize other industries.

The Bible has long predicted an economic nightmare where the average man would work all day and only be given enough to buy bread, and nothing else to eat it with.

Revelation 6:6 And I heard a voice in the midst of the four beasts say, A measure of wheat for a penny, and three measures of barley for a penny; and see thou hurt not the oil and the wine.

John Gill commented on this passage back in the late 1600s

this phrase expresses such a scarcity, as that a man's daily wages would be but just enough to buy himself bread, without any thing to eat with it; and when he would have nothing left for clothes, and other things, nor anything for his wife and children:

and see that thou hurt not the oil and wine; signifying that this scarcity should fall not upon the superfluities, such as oil and wine, which may be spared, and men can live without; but upon the necessities of life, particularly bread:

Stupid preachers think they know everything!

In Christ
The preacher

2009-02-19T08:33:00.000-05:00

Rhodium has fallen 90% from over 10,000 per ounce to 950 and now it is at about 1050. 80% of Rhodium is used in catalytic converters. Catalytic converters are used in cars primarily.. Car production and sales have fallen through the floor. Supply and demand.

Platinum: In the last year platinum has fallen from around 24oo to about 775 and is now back up to about 1080. Platinum and Gold were about the same price for a little while. Platinum is used in car exhaust pollution controls too....But while rhodium is used in cars and only as a coating in jewelry Platinum is used in medical equipment and is also sold as coins, jewelry and has various other uses. It dropped.. but did not die.

Gold and Silver are known as a store of value, wealth and are not dependent on any "industry" for survival. Jewelry, bank hoards, investments, coinage, collections, and 6000 years of religious and political reliability are not going to go away. Wars have not been fought all across the globe to acquire rhodium or platinum. No nation has ever made Platinum or Rhodium or iridium a "reserve" against melt-down. No one has ever walked into a store anywhere on the globe and bought much with rhodium or platinum and bought a sandwich or a coffee. (excluding nut cases and possibly on a rare occasion a miner in a local community where the mine is). Silver dollars. 20 Dollar Gold, and British Sovereigns, and after all they are not called Pound Rhodiums.

Gen 13:2 And Abram was very rich in cattle, in silver, and in gold. Not much said about Platinum or Rhodium.
Even at the very creation God makes sure we know about the layout of the land in the Garden of Eden :Gen 2:11 The name of the first(river) is Pison: that is it which compasseth the whole land of Havilah, where there is gold;
Gen 2:12 And the gold of that land is good: there is bdellium and the onyx stone.

Even in the future and the description of the New heavens and earth and the New Jerusalem God makes no mention of Platinum..
Rev 21:1 And I saw a new heaven and a new earth: for the first heaven and the first earth were passed away; and there was no more sea.
Rev 21:2 And I John saw the holy city, new Jerusalem, coming down from God out of heaven, prepared as a bride adorned for her husband. ...Rev 21:10 And he carried me away in the spirit to a great and high mountain, and shewed me that great city, the holy Jerusalem, descending out of heaven from God,....Rev 21:15 And he that talked with me had a golden reed to measure the city, and the gates thereof, and the wall thereof....Rev 21:17 And he measured the wall thereof, an hundred and forty and four cubits, according to the measure of a man, that is, of the angel.
Rev 21:18 And the building of the wall of it was of jasper: and the city was pure gold, like unto clear glass...Rev 21:21 And the twelve gates were twelve pearls; every several gate was of one pearl: and the street of the city was pure gold, as it were transparent glass.

So from Creation to Creation, without cars or "investors" futures markets or Wall-Street Gold has sttod the test of time and has the approval of God himself, He even uses it in the construction of the Walls and Streets of the City of God.
Jesus said. " I go to prepare are place for you that where I am there ye may be also..." To the best of our understanding He is not using platinum or Rhodium and as long as man has been here he has always tried to imitate God even if he has done it for wicked gain and purposes. Do you think that MAN will abandon Gold as a store of welath, a sign of Power and even in some cases as a form of of worship just because the big three auto makers are having a bit of a hard time?

IN Christ
The preacher

2009-02-17T13:58:00.001-05:00

Correcting or Dying

With the economic stimulus package ready to be signed into law and 787 BILLION dollars about to be flushed down the toilet:
The DOW is down over 3.5% into the 7500 range.
OIL who all the economic drools thought was somehow tied to Gold drops below 36 dollars a barrel.
GOLD is up over $969 and Silver passes $14.10.

The reason...Real money becomes valuable when too much Fake money shows up.

With governments around the world dumping TRILLIONS of units of their unbacked paper credit and "monies" on the world economy they are creating INFLATION in regard to REAL MONEY.

THINGS that are made may very well fall into depressionary value but GOLD and to a lesser degree SILVER, will not. Supply and demand on the individual level affects cars and boats and trinkets, but when it comes to GOLD and SILVER as a store of value and as wealth that can not grow old or be destroyed there will always be more demand than supply, especially in bad times. The BIG money people, governments and banks all know they can print money and make the masses happy for a time. Day to day paycheck people and hand to mouth living needs the paper money world and the paper money world knows it. They just increase their check week to week so that inflation is manageable for a time, but not forever. Eventually unemployment skyrockets, the price of some goods and services skyrockets while the value of homes and other long term things plummet. Once hyperinflation starts there is very little that can be done about it that is civil or polite and this increases the need to raise taxes on the properties to maintain the welfare state or the military establishment that is going to be used to 'quell" the masses. Eventually chaos. Folks lose their homes either through taxes or through foreclosure and a dictator arises or a revolution changes everything.

Milton Friedman, when dealing with Icelandic economists back 20 some years ago was told by them that their inflationary economies were sustainable and that their high welfare states that produced their inflationary economies were examples of just how their systems were working well, Milton pointed out to them that because of their homogeneous population that they might very well be able to maintain their standard of living, but that their economies would one day crash in on themselves. Well have you read about Iceland? How about the Soviet Union? Or any other highly socialistic welfare government money state?

Well folks we are them now. An economy can not live forever with no store of value behind its monetary policy. Our founding fathers knew this and established a SILVER and GOLD bi-metal standard for this country.

IT IS THE LAW.

"No state shall make anything but GOLD and SILVER coin a payment of debts". Article 1 Section 2 Clause 10 US CONSTITUTION

Debts in America, like the rest of the world are being MONETIZED. For years they have been taking a hole and turning it into a mountain, but with out filling it with anything. This insanity has led nation after nation for century after century into the same condition : NON-EXISTANCE, and if we do not change the direction we are going America will be next.

2009-02-05T14:26:00.002-05:00

Coinage Act of 1792
( The original found here at http://www.morpix.biz/x15/)

When you are done reading this please read Roger Sherman's Caveat Against injustice

An Act establishing a Mint, and regulating the Coins of the United States.

Mint established at the seat of government.

SECTION 1. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, and it is hereby enacted and declared, That a mint for the purpose of a national coinage be, and the same is established; to be situate and carried on at the seat of the government of the United States, for the time being: And that for the well conducting of the business of the said mint, there shall be the following officers and persons, namely,—a Director, an Assayer, a Chief Coiner, an Engraver, a Treasurer.

Director to employ workmen, etc.

SEC. 2. And be it further enacted, That the Director of the mint shall employ as many clerks, workmen and servants, as he shall from time to time find necessary, subject to the approbation of the President of the United States.

Duty of the officers.	SEC. 3. And be it further enacted, That the respective functions and duties of the officers above mentioned shall be as follows: The Director of the mint shall have the chief management of the business thereof, and shall superintend all other officers and persons who shall be employed therein. The Assayer shall receive and give receipts for all metals which may lawfully be brought to the mint to be coined; shall assay all such of them as may require it, and shall deliver them to the Chief Coiner to be coined. The Chief Coiner shall cause to be coined all metals which shall be received by him for that purpose, according to such regulations as shall be prescribed by this or any future law. The Engraver shall sink and prepare the necessary dies for such coinage, with the proper devices and inscriptions, but it shall be lawful for the functions and duties of Chief Coiner and Engraver to be performed by one person. The Treasurer shall receive from the Chief Coiner all the coins which shall have been struck, and shall pay or deliver them to the persons respectively to whom the same ought to be paid or delivered: he shall moreover receive and safely keep all monies which shall be for the use, maintenance and support of the mint, and shall disburse the same upon warrants signed by the Director.
Assayer.
Chief Coiner. Engraver.
Treasurer.

To take oath.

SEC. 4. And be it further enacted, That every officer and clerk of the said mint shall, before he enters upon the execution of his office, take an oath or affirmation before some judge of the United States faithfully and diligently to perform the duties thereof.

And give bond.

SEC. 5. And be it further enacted, That the said assayer, chief coiner and treasurer, previously to entering upon the execution of their respective offices, shall each become bound to the United States of America, with one or more sureties to the satisfaction of the Secretary of the Treasury, in the sum of ten thousand dollars, with condition for the faithful and diligent performance of the duties of his office.

Salaries.

SEC. 6. And be it further enacted, That there shall be allowed and paid as compensations for their respective services—To the said director, a yearly salary of two thousand dollars, to the said assayer, a yearly salary of one thousand five hundred dollars, to the said chief coiner, a yearly salary of one thousand five hundred dollars, to the said engraver, a yearly salary of one thousand two hundred dollars, to the said treasurer, a yearly salary of one thousand two hundred dollars, to each clerk who may be employed, a yearly salary not exceeding five hundred dollars, and to the several subordinate workmen and servants, such wages and allowances as are customary and reasonable, according to their respective stations and occupations.

Accounts how and where to be settled.

SEC. 7. And be it further enacted, That the accounts of the officers and persons employed in and about the said mint and for services performed in relation thereto, and all other accounts concerning the business and administration thereof, shall be adjusted and settled in the treasury department of the United States, and a quarter yearly account of the receipts and disbursements of the said mint shall be rendered at the said treasury for settlement according to such forms and regulations as shall have been prescribed by that department; and that once in each year a report of the transactions of the said mint, accompanied by an abstract of the settlements which shall have been from time to time made, duly certified by the comptroller of the treasury, shall be laid before Congress for their information.

President of U. S. to cause buildings to be provided.

SEC. 8. And be it further enacted, That in addition to the authority vested in the President of the United States by a resolution of the last session, touching the engaging of artists and the procuring of apparatus for the said mint, the President be authorized, and he is hereby authorized to cause to be provided and put in proper condition such buildings, and in such manner as shall appear to him requisite for the purpose of carrying on the business of the said mint; and that as well the expenses which shall have been incurred pursuant to the said resolution as those which may be incurred in providing and preparing the said buildings, and all other expenses which may hereafter accrue for the maintenance and support of the said mint, and in carrying on the business thereof, over and above the sums which may be received by reason of the rate per centum for coinage herein after mentioned, shall be defrayed from the treasury of the United States, out of any monies which from time to time shall be therein, not otherwise appropriated.

Expense how to be defrayed.

Species of the coins to be struck. Eagles.	SEC. 9. And be it further enacted, That there shall be from time to time struck and coined at the said mint, coins of gold, silver, and copper, of the following denomination, values and descriptions, viz. Eagles—each to be of the value of ten dollars or units, and to contain two hundred and forty-seven grains and four eighths of a grain of pure, or two hundred and seventy grains of standard gold. Half Eagles—each to be of the value of five dollars, and to contain one hundred and twenty-three grains and six eighths of a grain of pure, or one hundred and thirty-five grains of standard gold. Quarter Eagles—each to be of the value of two dollars and a half dollar, and to contain sixty-one grains and seven eighths of a grain of pure, or sixty-seven grains and four eighths of a grain of standard gold. Dollars or Units—each to be of the value of a Spanish milled dollar as the same is now current, and to contain three hundred and seventy-one grains and four sixteenths parts of a grain of pure, or four hundred and sixteen grains of standard silver. Half Dollars—each to be of half the value of the dollar or unit, and to contain one hundred and eighty-five grains and ten sixteenth parts of a grain of pure, or two hundred and eight grains of standard silver. Quarter Dollars—each to be of one fourth the value of the dollar or unit, and to contain ninety-two grains and thirteen sixteenth parts of a grain of pure, or one hundred and four grains of standard silver. Dismes—each to be of the value of one tenth of a dollar or unit, and to contain thirty-seven grains and two sixteenth parts of a grain of pure, or forty-one grains and three fifths parts of a grain of standard silver. Half Dismes—each to be of the value of one twentieth of a dollar, and to contain eighteen grains and nine sixteenths parts of a grain of pure, or twenty grains and four fifths parts of a grain of standard silver. Cents—each to be of the value of one hundredth part of a dollar, and to contain eleven penny-weights of copper. Half Cents—each to be of the value of half a cent, and to contain five penny-weights and a half a penny-weight of copper.
Half Eagles.
Quarter Eagles.
Dollars or Units.
Half Dollars.
Quarter Dollars.
Dismes.
Half Dismes.
Cents.
Half Cents. 31 USC 5101

Of what devices.

SEC. 10. And be it further enacted, That, upon the said coins respectively, there shall be the following devices and legends, namely: Upon one side of each of the said coins there shall be an impression emblematic of liberty, with an inscription of the word Liberty, and the year of the coinage; an upon the reverse of each of the gold and silver coins there shall be the figure or representation of an eagle, with this inscription, "United States of America" and upon the reverse of each of the copper coins, there shall be an inscription which shall express the denomination of the piece, namely, cent or half cent, as the case may require.

Proportional value of gold and silver.

SEC. 11. And be it further enacted, That the proportional value of gold to silver in all coins which shall by law be current as money within the United States, shall be as fifteen to one, according to quantity in weight, of pure gold or pure silver; that is to say, every fifteen pounds weight of pure silver shall be of equal value in all payments, with one pound weight of pure gold, and so in proportion as to any greater or less quantities of the respective metals.

Standard for gold coins, and alloy how to be regulated.
31 USC 5112

SEC. 12. And be it further enacted, That the standard for all gold coins of the United States shall be eleven parts fine to one part alloy; and accordingly that eleven parts in twelve of the entire weight of each of the said coins shall consist of pure gold, and the remaining one twelfth part of alloy; and the said alloy shall be composed of silver and copper, in such proportions not exceeding one half silver as shall be found convenient; to be regulated by the director of the mint, for the time being, with the approbation of the President of the United States, until further provisions shall be made by law. And to the end that the necessary information may be had in order to the making of such further provision, it shall be the duty of the director of the mint, at the expiration of a year after commencing the operations of the said mint, to report to Congress the practice thereof during the said year, touching the composition of the alloy of the said gold coins, the reasons for such practice, and the experiments and observations which shall have been made concerning the effects of different proportions of silver and copper in the said alloy.

Director to report the practice of the mint touching the alloy of gold coins.

Standard for silver coins—alloy how to be regulated.

SEC. 13. And be it further enacted, That the standard for all silver coins of the United States, shall be one thousand four hundred and eighty-five parts fine to one hundred and seventy-nine parts alloy; and accordingly that one thousand four hundred and eighty-five parts in one thousand six hundred and sixty-four parts of the entire weight of each of the said coins shall consist of pure silver, and the remaining one hundred and seventy-nine parts of alloy; which alloy shall be wholly of copper.

Alloy.

Persons may bring gold and silver bullion, to be coined free of expense;	SEC. 14. And be it further enacted, That it shall be lawful for any person or persons to bring to the said mint gold and silver bullion, in order to their being coined; and that the bullion so brought shall be there assayed and coined as speedily as may be after the receipt thereof, and that free of expense to the person or persons by whom the same shall have been brought. And as soon as the said bullion shall have been coined, the person or persons by whom the same shall have been delivered, shall upon demand receive in lieu thereof coins of the same species of bullion which shall have been so delivered, weight for weight, of the pure gold or silver therein contained: Provided nevertheless, That it shall be at the mutual option of the party or parties bringing such bullion, and of the director of the said mint, to make an immediate exchange of coins for standard bullion, with a deduction of one half per cent. from the weight of the pure gold , or pure silver contained in the said bullion, as an indemnification to the mint for the time which will necessarily be required for coining the said bullion, and for the advance which shall have been so made in coins. And it shall be the duty of the Secretary of the Treasury to furnish the said mint from time to time whenever the state of the treasury will admit thereof, with such sums as may be necessary for effecting the said exchanges, to be replaced as speedily as may be out of the coins which shall have been made of the bullion for which the monies so furnished shall have been exchanged; and the said deduction of one half per cent. shall constitute a fund towards defraying the expenses of the said mint.
how the director may exchange coins therefor, deducting half percent.
Duty of the Secretary of Treasury herein.
The half per cent. to constitute a fund, etc.

Order of delivering coins to persons bringing bullion, and penalty on giving undue preference.

SEC. 15. And be it further enacted, That the bullion which shall be brought as aforesaid to the mint to be coined, shall be coined, and the equivalent thereof in coins rendered, if demanded, in the order in which the said bullion shall have been brought or delivered, giving priority according to priority of delivery only, and without preference to any person or persons; and if any preference shall be given contrary to the direction aforesaid, the officer by whom such undue preference shall be given, shall in each case forfeit and pay one thousand dollars; to be recovered with costs of suit. And to the end that it may be known if such preference shall at any time be given, the assayer or officer to whom the said bullion shall be delivered to be coined, shall give to the person or persons bringing the same, a memorandum in writing under his hand, denoting the weight, fineness and value thereof, together with the day and order of its delivery into the mint.

Coins made a lawful tender,
31 USC 5103

SEC. 16. And be it further enacted, That all the gold and silver coins which shall have been struck at, and issued from the said mint, shall be a lawful tender in all payments whatsoever, those of full weight according to the respective values herein before declared, and those of less than full weight at values proportional to their respective weights.

and to be made conformable to the standard weights, etc.

SEC. 17. And be it further enacted, That it shall be the duty of the respective officers of the said mint, carefully and faithfully to use their best endeavours that all the gold and silver coins which shall be struck at the said mint shall be, as nearly as may be, conformable to the several standards and weights aforesaid, and that the copper whereof the cents and half cents aforesaid may be composed, shall be of good quality.

The Treasurer to reserve not less than three pieces of each coin to be assayed;

when and by whom.

SEC. 18. And the better to secure a due conformity of the said gold and silver coins to their respective standards, Be it further enacted, That from every separate mass of standard gold or silver, which shall be made into coins at the said mint, there shall be taken, set apart by the treasurer and reserved in his custody a certain number of pieces, not less than three, and that once in every year the pieces so set apart and reserved, shall be assayed under the inspection of the Chief Justice of the United States, the Secretary and Comptroller of the Treasury, the Secretary for the department of State, and the Attorney General of the United States, (who are hereby required to attend for that purpose at the said mint, on the last Monday in July in each year,) or under the inspection of any three of them, in such manner as they or a majority of them shall direct, and in the presence of the director, assayer and chief coiner of the said mint; and if it shall be found that the gold and silver so assayed, shall not be inferior to their respective standards herein before declared more than one part in one hundred and forty-four parts, the officer or officers of the said mint whom it may concern shall be held excusable; but if any greater inferiority shall appear, it shall be certified to the President of the United States, and the said officer or officers shall be deemed disqualified to hold their respective offices.

Penalty on debasing the coins.

SEC. 19. And be it further enacted, That if any of the gold or silver coins which shall be struck or coined at the said mint shall be debased or made worse as to the proportion of fine gold or fine silver therein contained, or shall be of less weight or value than the same ought to be pursuant to the directions of this act, through the default or with the connivance of any of the officers or persons who shall be employed at the said mint, for the purpose of profit or gain, or otherwise with a fraudulent intent, and if any of the said officers or persons shall embezzle any of the metals which shall at any time be committed to their charge for the purpose of being coined, or any of the coins which shall be struck or coined at the said mint, every such officer or person who shall commit any or either of the said offences, shall be deemed guilty of felony, and shall suffer death.

Money of account to be expressed in dollars, etc.
31 USC 5101

SEC. 20. And be it further enacted, That the money of account of the United States shall be expressed in dollars or units, dismes or tenths, cents or hundredths, and milles or thousandths, a disme being the tenth part of a dollar, a cent the hundredth part of a dollar, a mille the thousandth part of a dollar, and that all accounts in the public offices and all proceedings in the courts of the United States shall be kept and had in conformity to this regulation.

APPROVED, April 2, 1792.

(a). The acts establishing and regulating the mint of the United States, and for regulating coins, have been: An act establishing a mint and regulating the coins of the United States passed April 2, 1792, chap. 16, an act regulating foreign coins, and for other purposes, February 9, 1793, chap. 5; an act in alteration of the act establishing a mint and regulating the coins of the United States, March 3, 1794, chap. 4; an act supplementary to the act entitled, "An act to establish a mint and regulating the coins of the United States," passed March 3, 1795, chap. 47; an act respecting the mint, May 27, 1796, chap. 33; an act respecting the mint, April 24, 1800, chap. 34; an act concerning the mint, March 3, 1801, chap. 21; an act to prolong the continuance of the mint at Philadelphia, January 14, 1818, chap. 4; an act further to prolong the mint at Philadelphia, March 3, 1823, chap. 42; an act to continue the mint at the city of Philadelphia, and for other purposes, May 19, 1828, chap. 67; an act concerning the gold coins of the United States, and for other purposes, June 28, 1834, chap. 95; an act to establish branches of the mint of the United States, March 3, 1835, chap. 37; an act supplementary to an act entitled, "An act establishing a mint and regulating the coins of the United States," January 18, 1837, chap. 3; an act to amend an act entitled, "An act to establish branches of the mint of the United States," February 13, 1837, chap. 14; an act amendatory of an act establishing the branch mint at Danlonega, Georgia, and defining the duties of the assayer and coiner, February 27, 1843, chap. 46. Go to Title 31 USC for complete, current money and finance laws.

2009-02-05T14:22:00.001-05:00

A Treatise on

Monetary Reform

By

Merrill M. E. Jenkins, Sr., M.R.

I. PREFACE

The magnitude of the present monetary disorder defies description. Advocates of reform are lost in a maze of treatments for symptoms and concrete solutions are conspicuous by their absence. In each case the cure proposed is worse than the disease.

Many agree it is imperative a solution be found if we wish to avoid a cataclysm in world events. What must be comprehended is the gravity of the situation is world wide -- what is at stake is not just a panic of the magnitude experienced in recent history, but also a loss of the facility of trade and exchange so vital to the very existence of a civilized society.

As hopeless as the situation may appear, it is by no means futile. What is needed is the leadership that somehow miraculously seems to appear in such times of crises, to lead us out of this monetary disorder BY REVERSING THE PROCESS THAT LED US TO WHERE WE ARE TODAY.

Louis N. Basso
St. Louis, MO
March, 1982

II. BACKGROUND AND HISTORY

Archaeologists believe European and Asian tribes routinely met to exchange goods in the Ural Mountains about 12,000 years ago. A Chinese proverb some years old says,

"If you collect the money, you disperse the people;
If you disperse the money, you collect the people."

Wage and price controls are over 5,000 years old.

Tax cheating is 4,000 years old.

The first monetary devaluations occurred in Greece, 6th Century B.C.

Emperor WooTi came up with Income Tax around 140 B.C. and Cosimo deMedici (13891464) thought up the soak the rich plan (graduated income tax).

In the 17th Century, European nations followed an economic philosophy known as Mercantilism. Mercantilists believed that nations remained powerful and wealthy amassing gold and silver by selling more merchandise than they bought. They established colonies and took raw materials and precious metals from these new lands while selling them goods.

Gold and silver were metals with particularly tenacious resistance to erosion and required great amounts of labor to mine and refine. Because gold and silver were fungible (highly divisible without losing value) they were an excellent medium of exchange. They were particularly desirable in coin form and coins would command more goods than commodities in noncoin form.

The Chinese used gold cubes as early as 2100 B.C., and the Bible mentions precious metal coins. The Lydians in West Turkey cast crudely inscribed silver pellets, the earliest known coins, around 700 B.C. Gold and silver coins were the most accumulating wealth through time and a preeminent source of independence. As private property of high value, in small space, gold and silver were immediately acceptable mediums of exchange for the goods and services of others.

All manner of barter was possible using highly divisible and stable parity gold and silver coins, down to the smallest weight. All transactions were immediately and satisfactorily concluded with the exchange of gold for goods. The people of any nation were independent of the state as long as they owned gold and supported government with its use.

A disadvantage of this system was that large quantities of gold and silver coin were difficult and unsafe to transport. This disadvantage led to the forerunner of our banking system -- the goldsmiths. People departing on long trips began leaving their coins with goldsmiths for safekeeping. The goldsmiths in turn would issue the traveler a receipt. At their destination, a receipt was exchanged for gold coin by an associate of the goldsmith.

The receipts became so popular people began paying debts with them rather than gold coin. This marked the beginnings of paper currency and the idea of money was born.

It is important to note that the true function of the receipts was their ability to serve as proxy for the gold and silver coins, and they introduced a time factor to exchanges that differentiated them from actual batter.

Around the same time, people began paying bills with letters instructing goldsmiths to give coins to the holder of the letter. These letters (which we now call checks) began another phase in the gradual revolutionary move from independence to interdependence.

Early paper monies were promissory notes that represented precious metals. They could redeem gold or silver coins at a goldsmith or treasury. Paper money, which the Chinese were already using around 1200 A.D., grew rapidly in America. Several Colonies in the late 1600s issued paper money to pay bills until enough taxes could be collected in gold and silver coin to buy the paper back. As long as the Colonists believed the paper would be bought back, or be able some time to redeem coin, it was accepted. But, if they had doubts, the paper was shunned.

Although paper money problems were well known then, the Continental Congress had to finance an army and, without taxing powers, turned to the printing press.

"This currency, as we manage it, is a wonderful machine. It performs its office when we issue it; it pays and clothes troops, and provides victuals and ammunition; and when we are obliged to issue a quantity excessive, it pays itself off by depreciation."
Benjamin Franklin, 1779.

The attitude of the average member of Congress was: "why should I vote to burden my constituents with taxes when it is simpler to have our printer turn out a wagon load of money, one quire of which will pay for the whole?"

But Congress issued so many Continental dollars that the huge quantity being bid against much sought after goods and services, soon had prices soaring. In 1780, one hat and a suit of clothes ran $2,000.00. The cost of flour had reached $1,575.00 a barrel. A haircut reached $150.00 before the barbers stopped accepting currency as payment and used it for wallpaper. Congress responded to all this by printing more Continental dollars which simply made matters worse.

In March of 1778, $1.00 in coin (English, Spanish, widely circulated in the Colonies) was worth $1.75 in Continental notes. A year later $10.00 in paper currency was worth $1.00 in coin. By May 1781, the figure soared -- between $200.00 and $500.00 in Continental paper for a dollar in coin. The public coined a phrase: "not worth a Continental". For all practical purposes, all money issued by Government was worthless. A large barrel of rum in Boston was $8,000.00, and within six weeks the empty barrel was worth $12,000.00. That same year, 1781, a Boston housewife was lucky to get a pound of rancid salt port for $375.00. "Legislation on the subject grew bitter; but finally, in June, 1781, all the legal Tender Laws were repealed." -- The Financial History of the U.S., 17741789 by Albert Bolles.

"It was finally decided, by the vote of nine states against New Jersey and Maryland, that the power to issue inconvertible paper should not be granted to the federal government. An express prohibition, such as had been adopted for the separate states, was thought unnecessary. It was supposed that it was enough to withhold the power, since the federal government would not venture to exercise it unless expressly permitted in the Constitution. "Thus," says Madison, in his narrative on the proceedings, "the pretext for a paper currency, and particularly for making the bills a tender, either for public or private debts, was cut off."
The Critical Period of American History,
17831789 By John Fiske.

In 1789, it became rather common knowledge that paper money, defined as a substitute for taxation, gave every opportunity to the tricky, deceitful person of any community, to cheat and defraud his neighbors, and all under the sanction of solemn acts of legislative authority.

"Every lover of his country will therefore be solicitous to find out some speedy remedy for this alarming evil. There is no possible substitute for the loss of commerce. Our first grand object, therefore, it its restoration. I presume not to dictate or direct. It is a subject that will require the deepest deliberations and researches of the wisest and more experienced men in America to fully comprehend. It probably belongs to no one man existing to possess all the qualifications required to trace the course of American commerce through all intricate paths and to those and only those that shall lead the United States to future glory and prosperity I am sanguine in the belief of the possibility that we may one day become a great commercial and flourishing nation. But if in the pursuit of the means we should unfortunately stumble again on unfunded paper money or any similar species of fraud, we shall assuredly give a fatal stab to our national credit in its infancy. Paper money will invariably operate in the body of politics as spirit liquors on the human body. They prey on the vitals and ultimately destroy them."
George Washington, 1789.

Establishment of the U S. Mint in 1792 saw the beginning of the end of the worst period of inflation (fiat - "paper money") this country had ever experienced till that time.

EXCERPTS FROM THE COINAGE ACT OF 1792:

Sec. 11 and be it further enacted, that the proportional value of gold and silver in all coins which shall by law be current as money within the United States.
Sec. 16 and be it further enacted, that all the gold and silver coin which shall have been struck at, and issued from the said mint shall be a lawful tender in all payments whatsoever.
Sec. 19 and be it further enacted, that if any of the gold and silver coins which shall be struck or coined at the said mint shall be debased . . . every such officer or person who shall commit any or either of said offenses, shall be guilty of felony and shall suffer death.

In a system known as free coinage the Mint accepted precious metal bullion from anyone and replaced it with fabricated coin of equivalent worth, because the new U.S. Treasury, formed in 1789, lacked enough precious metal to issue all the coin the growing economy needed. U.S. money needs were met by private banks chartered to operate by state governments. Banks accepted deposits of gold and silver coin and made loans and payments in their own notes which were able to redeem the gold and silver coin. The banks had to keep the precious metal coin reserve on hand to meet redemptions. However, a few years earlier, in 1775, Scottish philosophy professor Adam Smith had published a book, The Wealth of Nations, which argued that the source of national power and wealth was not gold and silver but production of goods. Smith's book became the cornerstone of a new social science - Economics. His writings and those of his contemporaries, slowly turned Europe toward improving production and developing interdependent trade.

The goldsmiths (modern day bankers) had already seen the advantages of issuing paper in excess of gold coin on hand to be redeemed. In the early 1800s, America had many honest wellrun banks, but others earned reputations more for fraud than integrity.

Wildcat banks got their name because they were located in regions so remote and hostile that wildcats, not note holders, came to their doors. Before state laws regulated banks, bankers knew they had to keep a certain amount of precious metal coins on hand to be redeemed upon request of note holders. To assure the public that reserves were available, vaults were often located where customers could view the precious metal coins.

But other bankers were not quite as truthful. They would sprinkle gold or silver coins on top of kegs of nails. In later years when state examiners checked reserves, some slick operators would ship coins from bank to bank minutes ahead of the examiner. The banks took in gold and silver deposits and made loans and payments in their own notes which, as mentioned earlier, could redeem gold or silver coin.

State bank notes worked well in local areas if people were sure the issuing bank was in good condition and its notes could redeem coin. Outside their local areas, notes were often accepted only at a discount (less than face value) because merchants did not know how honest and scrupulous the issuing bank was. If depositors feared a bank could not honor all of its outstanding notes, they rushed to draw out deposits and redeem gold and silver coin before the reserves disappeared.

Despite panics and failures, statebank notes were widely used during much of the 1880s. By the early 1860s more than 10,000 separate issues of different sizes, colors, and designs were in circulation.

The Civil War produced changes that set the stage for today's money system. The federal government could not raise enough money to pay for the civil war through bond sales and taxes. As rapidly as the Treasury paid bills with gold and silver coin, the metal was hidden by the public as private property.

Congress issued paper money -- U.S. Notes -- that was not able to redeem gold or silver coin. Congress tried to make the notes acceptable by declaring them Legal Tender which meant they had to be accepted in payment of all private debts. The government also began chartering National Banks which were given paper currency they could issue as their own. State banks were stopped from issuing notes. The public was told that National Banks received currency in proportion to the amount of government bonds they purchased. No one stopped to think!

THE GOVERNMENT PRINTED THE BONDS AND THE CURRENCY. THE CURRENCY WAS GIVEN TO THE NATIONAL BANKS WITH WHICH TO BUY THE BONDS.

This particular piece of trickery was to make the public believe that the currency in circulation was backed by the government bonds held by the bank issuing them. Remember the currency was given to the National banks to issue as their own.

The real reason for the deceitful trickery was to divert gold away from public ownership. In public hands gold is independence; in the hands of any other authority - the public becomes interdependent on that authority.

Jay Cooke, a Philadelphia banker, was commissioned as a secret agent of the U.S. Treasury to accomplish this. The public was educated to look at government debt as a national blessing IF the public could cash-in on it. Government bonds THAT WERE PAYABLE IN GOLD could only be bought with paper currency (greenbacks). To get the greenbacks the public would deposit gold. The story was that if you held gold, the amount didn't increase over time. But if you deposited gold, got greenbacks, bought bonds, held bonds to maturity, you would then have more gold (the bond interest plus principal at maturity).

He stated that $1,000.00 in gold invested in five-twenties (bonds) would in five years be worth $2,000.00. Prudence and self interest, it was said, dictated that there should be no time lost in subscribing. THE PUBLIC FELL FOR IT: HOOK, LINE, AND SINKER.

The paper currency became Legal Tender by public compliance. The government could print bonds and currency as fast as the presses would go and the public forced its gold upon the authorities to get the bonds and the paper currency.

"Nothing could be more clearly expressed than this." As Mr. Justice Field observes, in his able dissenting opinion in the recent case of Juilliard vs. Greenman, "If there be anything in the history of the Constitution which can be established with moral certainty, it is that the framers of that instrument intended to prohibit the issue of Legal lender notes both by the general government and by the states, and this prevents interference with the contracts of private parties." Such has been the opinion of our ablest constitutional jurists, Marshall, Webster, Story, Curtis, and Nelson. There can be little doubt that, according to all sound principles of interpretation, the Legal Tender Act of 1862 was passed in flagrant violation of the Constitution."
The Critical Period of American History
by John Fiske 1888.

The greenback was then and for years afterwards one of the most hotly and illnaturedly debated subjects in the financial policy of the United States.

One stop on the way to evil easily leads to others. Though Mr. Chase (Secretary of the Treasury) was a reluctant convert to the Legal Tender when the first law was passed on February 12, 1862, it was less than five months, on July 11, 1862, until a further emission of greenbacks, $150,000.00 was authorized, thus doubling their amount. The public went overboard for the bonds and the currency with which to buy them. Questions to Jay Cooke and his answers about the bonds will help to explain why the public was fooled into compliance.

Question: Do you take only Legal Tender notes?
Answer: Legal Tender Notes or checks upon Philadelphia or New York that will bring Legal Tenders, are what the Secretary allows me to receive.
Question: Do you sell the bonds at par?
Answer: The bonds are sold at par, the interest to commence the day you pay the money.
Question: What interest do you pay?
Answer: The bonds pay six percent interest in gold, three percent every six months, on the first day of May and November at the Mint in Philadelphia, or at any SubTreasury in New York or elsewhere.
Question: How does Secretary Chase get enough gold to pay this interest?
Answer: The duties on imports of all articles from abroad must be paid in gold, and this is the way Secretary Chase gets his gold. It is now being paid into the Treasury at the rate of Two Hundred Thousand Dollars each day, which is twice as much as he needs to pay the interest in gold.
Question: Will the face of the bonds be paid in gold when due?
Answer: Congress has provided that the bonds shall be paid in gold when due.
Question: Will I have to pay the same tax on them as I now pay on my Railroad, or other bonds?
Answers: No! You will not have to pay any taxes on these Bonds if your income from them does not exceed $600.00; and on all above $600.00 you will only have to pay onehalf as much Income Tax as if your money was invested in Mortgages or other Securities.
Those who neglect these six percent Bonds, the interest and principal of which they will get in gold, may have occasion to regret it.
I am, very truly, your friend,
Jay Cooke,
Subscription Agent
At. Office of Jay Cooke & Co.,
No. 114 5. Third St., Philadelphia.

The public was told it was utter folly to hold gold with such a good investment available. The huge national debt being accumulated was considered by Secretary Chase to be "small compared with that of Great Britain or France, whilst our resources are vastly greater." Here was a reference to the economics of Adam Smith that the wealth of a nation was its potential for production of goods from resources. The currency was backed by the FUTURE PRODUCTIVITY of the public. The history of the world may be searched in vain for a parallel case of popular financial support for a Government accumulated national debt.

"Having once committed ourselves, and having a vast number of agents through the country, our government loan agency expending vast sums with the newspapers for advertisements, we felt that we had a right to claim their columns in which to set forth the merits of the new national banking system."
Jay Cooke.

Gold was steadily advancing in parity with paper as time passed and the government issued increasing amounts of paper money. The strong guiding hand of Mr. Cooke no longer dominated the stock exchange and the newspaper press. He embraced every opportunity to attack those who sought to profit by the traffic in gold.

"The city of New York, whilst containing . . . many noble and patriotic citizens and institutions, was undeniably the centre . . . filled with foreigners . . . and disloyal politicians, it became the centre of speculation in gold and every species of material and produce while could be turned into gold by transshipment abroad. This speculation and the rise in the price of specie were so persistent and continuous that even many good citizens thoughtlessly entered the trade and thus contributed to the depression of our bonds and currency . . . the editors I employed were instructed to make constant warfare upon this speculative disposition and to portray the want to patriotism of those engaged in it."
Jay Cooke.
"I had on several occasions pleaded with Mr. Chase to allow me to teach these rebels and greenback slanderers a lesson they would not forget and I told him I could do this, and at once bring gold down to a fairer level by the use of only a few millions of the of gold then in the New York subtreasury, returning the specie at a large profit, if it were required at any time. From an investigation I had made I was sure that not more than $12,000,000.00 to $18,000,000.00 of greenbacks were then held by the New York banks, requiring the sale of not more than $6,000,000.00 or $7,000,000.00 of gold to absorb every dollar of them into the Treasury and to cause them to rise temporarily above bank credits.
One morning Mr. Chase arrived in New York at a time when I was also there. The gold men, hearing of his arrival, rushed the price of gold up . . . Although very nervous and doubtful about the policy of lessening his gold supply by a single dollar the crisis was so grave that he could see no other way than to give me authority to carry out my plans . . . Mr. Chase returned to Washington and I at once, that afternoon, met confidentially David Crawford of the firm of Clark, Dodge and Company, of which I had once been a member. I knew my friend David to be a man in whom I could fully rely to keep so vast a secret, even from his own partners, and that he had the discretion and wisdom to carry out my instructions to the very letter. We decided to begin sales of gold next morning, but sell no more on that day than could be the price down to 180, so as not to create suspicion regarding our plans, although he told the purchasers that he would require in payment greenbacks, or checks marked good, which would draw greenbacks."
"The first day we sold $2,700,000.00 and the next morning before anyone had yet reached Wall Street I carted the $2,700,000.00 from the Sub-Treasury to Clark, Dodge and Company's office and stored it away under their remotest and most secret counters; whence it was with as little show as possible delivered rather late in the day, checks and greenbacks being turned over to me in return. I took all these to Mr. Cisko, subtreasurer, requesting him to draw all the checks in greenbacks before three o'clock. In the meantime Mr. Crawford had disposed of over $2,500,000.00 more of gold and the price fell to 170.00. The same operation was repeated, the greenbacks being drawn from the banks, and the next morning when Mr. Crawford began selling, the price dropped so rapidly that by the time he had disposed of $1,250,000.00 a panic prevailed . . . worthless greenbacks rose to a premium . . . by this time the fact that the SubTreasury was selling gold and would sell $20,000,000.00 more if it were required to break up the conspiracy against the credit of the government, became noised about Wall Street and the result may be imagined."
"I saw at once that we had gone far enough, and that the power of the nation was uppermost . . . for some time thereafter it only required my visiting New York for the whole tribe of government haters to suspend their efforts."
Jay Cooke.

Later Mr. Chase was again forced to call upon Cooke to check the advance on gold. The sale of gold by the government had no permanent effect, however, on the gold market. Speculation continued to rage in New York and the price of gold again resumed its upward course. Chase tried another device, that of meeting the export demand for gold by selling exchange upon London at a rate below the prevailing market rate, but this also proved ineffective. In the meantime, another scheme had been brewing. It was based on the principle that, if the gold market could not be controlled, it should be destroyed.

The Act to prohibit certain sales of gold and foreign exchange was passed in June, 1864. It forbade trading in gold futures and all those practices which are special tools of operators on the market, and it also placed limitations on dealing in foreign exchange. Aimed at destroying a central market was the provision which forbade any transaction in gold at any other place than the ordinary place of business of either the seller or purchaser.

The gold act went into effect at once. The Gold room was closed. But the price of gold continued its upward flight. Foreign exchanges were thrown into a hopeless confusion. On July 2, 1864 the Act was repealed. Gold continued to rise.

On February 27, 1868 Senator Sherman made a long speech saying the Bonds should be redeemed with greenbacks. "I say," the Ohio Senator declared, "that equity and justice are amply satisfied if we redeem these bonds at the end of five years in the same kind of money of the same intrinsic value it bore at the time they were issued. This logic has captured the people. Even if erroneous, it is sweeping the country."

The Treasury department had been regulating the gold markets with purchases and sales in a way which was at first necessary, but which when continued indefinitely, could not be justified. After the secret sales were abolished, the Secretary of the Treasury manipulated the markets publicly and the government was relied upon to correct each slight disorder.

The government efforts to sustain this explosive and inflated paper system, had so far been marked by great ingenuity, resolution and success. Mr. Cooke's expertise with printer's ink, showcards, posters, circulars, pamphlets, handbills and a variety of devices of the types to catch the eyes, impress the minds and draw the gold from the pockets of the public. All this was done on the most lavish scale with infinite psychological knowledge and it was a factor of very great importance in this gigantic fraud the mere mention of its name terrorized gold holders.

The existence of two standards of value, gold and paper, was rapidly leading the county to a most serious crisis which culminated on Friday, September 24, 1869. On this very day, Friday, September 24, 1869, however, the premium of gold had risen so high that, after consultation with the President, word was sent to New York as publicly as possible, ordering Treasury agents to sell $4,000,000.00 of gold and take in that amount on bonds. There was a panic instantly, gold falling from 162 to 133 in fifteen minutes.

Taking in the bonds they had to take in the currency also as the gold went out. The amount of bonds used as backing for the currency shrank, and the money quantity declined. Thus, the money quantity appeared inelastic incapable of expanding or contracting when necessary. This inelasticity led to money panics that wracked the nation until 1913, when the banking system was restructured.

This idea of the inelasticity of money was an extension of Adam Smith's new social science of Economics. Smith had advanced the idea of a Law of Supply and Demand. Although economists knew for centuries that changes in the amount of money and how quickly it was spent affected business, they did not discover how the relationship worked until this century.

In 1911, American mathematician and economist Irving Fisher mathematically proved that doubling a nation's money quantity would double prices. He believed economic booms and busts were maladies caused by too much or too little money. Fisher's combined use of statistics, mathematics and Smith's economics helped start a new approach to economics known as Econometrics.

Basically modern econometrics uses Adam Smith's Law of Supply and Demand, when supply of goods exceeds the demand (money), prices fall. When the demand exceeds supply prices rise.

The Federal Reserve System was created in 1913 to be responsible for making sure commercial banks do not create so much money that we have rising prices, nor so little that we suffer from falling production and unemployment. That job is not easy; indeed, no central bank has been entirely successful in maintaining the proper balance between too much and too little money.

One problem the Federal Reserve faces is balancing monetary policy with government spending and taxing actions fiscal policy. Another problem is that people cannot agree on just how much money is enough.

In the 1950s, another American economist, Milton Friedman, substantiated Fisher's theories and concluded that changes in the amount of money are a major influence on our economy's direction and the pace of production, employment and spending. A stable economy, he said, requires money quantity to increase steadily in proportion to our ability to produce.

Friedman's views, known as Monetarism, have vastly influenced how we think about money, and the way the Federal Reserve controls our money. Adam Smith . . . . . 1776 -- Economics, Irving Fisher . . . . . 1911 - Econometrics, Milton Friedman . . . . . 1950 - Monetarism.

All concepts are based upon the QUANTITY of money vs. PRODUCTIVITY. All are premised upon the PRODUCERS being INTERDEPENDENT upon a Money Creating Authority with power to acquire, hold, or redistribute the fruits of the public's labor arbitrarily.

The Federal Reserve System of privately owned commercial banks creates money, directs the policies of government and holds the destiny of the people under its control.

III. SCOPE OF THE PROBLEM

"Money is the most important subject intellectual persons can investigate and reflect upon. It is so important that our present civilization may collapse unless it is widely understood and its defects remedied very soon."
Robert H. Hemphill, Former Credit Manager
Federal Reserve Bank of Atlanta.

Monetary Realism is based upon the Law of Competitive Bidding. It is based upon fundamental principles:

A medium of exchange must be production itself, or, an irrefutable claim upon production.

The producers are Interdependent of any Money Creating Authority with retained right to hold, or distribute the fruits of their labor without interference.

The purpose of Monetary Realism is to undo the harm of an error made in 1776 and perpetuated until the present. IT IS NOT THE QUANTITY OF MONEY PER SE THAT IS THE PROBLEM. IT IS THE NATURE OF MONEY THAT PERMITS THERE BEING A QUANTITY EXCESSIVE. The observations of Adam Smith, Irving Fisher and Milton Friedman can be considered valid only to the degree that their observations embraced all relevant factors.

All the usual ways of explaining the Law of Supply and Demand can be used to explain the Law of Competitive Bidding. The QUANTITY of money insofar as it exceeds the QUANTITY of goods and services can be bid in exchanges and the EXCESS QUANTITY being BID can alter the parity of money in relation to the goods and services. However, if the competitive bidding was done exclusively with the goods and services themselves there could not be any excessive QUANTITY. The gross national product (G.N.P.) is always 100% regardless of the QUANTITY of units produced or hours of labor performed. If only labor performed or goods produced were exchanged by those performing and producing, "Inflation" could not come into being. Being limited to 100% of G.N.P. as the limit of offering (bidding), the demand being supply could not exceed itself and be an excessive quantity. This premise is preeminently fundamental and is the base upon which to understand that precious metal coinage was barter and an absolute opposite to inflation ("money").

That barter (precious metal coinage production) should ever have been called "money" was the greatest perversion of language since the dawn of time. Money, an abstract term and used as a name (money) for a nonentity, allows for the acceptance of concepts that would otherwise be impossible. Since a nonentity is given credibility by having a name, its quantity can be increased or decreased by mental manipulation and physical representation -- "Money" represented by a physical token, supports the credibility of its existence. At a time when gold and silver coins (batter) were called money, there was also a nonentity -- Banker's Credit -- represented by numbers in a ledger and used as a medium of exchange, interchangeable with the gold and silver coin barter.

Nonentity -- money -- must NOT BE confused with notes that represent 100% redemption of 100% reserve gold and sliver coin. Money, represented by banker's paper, was not a receipt for the deposit of coin, but banker's letters of credit were interchangeable with receipts for the actual deposit of coin. Bankers were able to WITHDRAW coin with the paper that was NOT a deposit receipt. The banker's credit paper constituted the excess quantity of money that circulated alongside of, and was as readily acceptable as, the actual receipts for deposited coin. Using a common symbol ($) for money, eliminated any respective identity of the specific thing deposited. This, along with a doubleentry bookkeeping system, facilitated the withdrawal of deposited precious metal coin by receipts for the deposit of Banker's Credit.

		DEBIT		CREDIT
1	unit of gold deposited	. . . .	was recorded as	. . . .	$1.00
1	unit of silver deposited	. . . .	was recorded as	. . . .	$1.00
1	unit of "credit" deposited	. . . .	was recorded as	. . . .	$1.00
1	unit of gold withdrawn	. . . .	was recorded as	. . . .	$1.00
1	unit of gold withdrawn	. . . .	was recorded as	. . . .	$1.00
1	unit of gold withdrawn	. . . .	was recorded as	. . . .	$1.00

The common symbol ($) plus the doubleentry bookkeeping device allowed the banking system to fool the public for many decades into believing: "There isn't enough gold." By drawing out the precious metal coin and limiting the issuance of their credit, the bankers were able to create monetary feast or famine. As an explanation for monetary feast they used Adam Smith's demand exceeding supply. For an explanation of monetary famine they used Adam Smith's supply exceeding demand (there isn't enough gold). The "Too much money chasing too few goods" has, as Senator Sherman said about the bonds in 1868: "captured the people. Even if erroneous, it is sweeping the country."

It is at best an unfortunate error. That Irving Fisher and Milton Friedman should have verified and built upon this error is extremely unfortunate. That econometrics and monetarism have been accepted and used extensively today is unbelievable, when one considers the reasoning used to support modern money theories.

"Today, most coin and currency is flat money, money by virtue of government declaration and public acceptance. Fiat money isn't valuable in itself and doesn't represent a claim on gold or silver."
"Fiat money is acceptable because people know money's true value is its purchasing power its ability to buy goods and services."
Federal Reserve Bank of New York Pub.

Today, there is not enough gold or silver coin interchangeable with flat. Fiat was acceptable originally because it was interchangeable with the precious metal coin (barter), but now the batter has been eliminated and we are using only the MEMORY of barter. Modern money is strictly MENTAL. However unbelievable that may be, it is fact: dollars are makebelieve units of modern, mental money, the Greatest Hoax on Earth.

"Coin and currency are Legal Tender, money the government says has to be accepted if offered to settle a debt. But that approval doesn't make cash any more "real" than checkbook balances."
Federal Reserve Bank of New York Pub.

At present money is an intangible (unreal) medium of exchange that is Legal Tender (legal to offer) and is represented tangibly by paper and metal tokens.

"Neither paper currency nor deposits have value as commodities. Intrinsically, a dollar bill is just a piece of paper. Deposits are merely book entries. Coins do have some intrinsic value as metal, but far less than their face amount.
"What, then, makes these instruments checks, paper money, and coins acceptable as face value in payment of all debts and for other monetary uses? Mainly, it is the confidence people have that they will be able to exchange such money for real goods and services whenever they choose to do so."
Federal Reserve Bank of Chicago Pub.
Modem Money Mechanics, p. 3.

". . . it is the confidence people have . . ." that gives "value" to Federal Reserve notes, that haven't any value in themselves and cannot be redeemed or exchanged for anything of value at their source. Federal Reserve notes (dollar bills) are pieces of paper that serve only as tokens to represent an unreal (intangible) medium of exchange, and whose only value is their continued acceptance by people with confidence.

Dollar, which was a word to express a quantity of gold or silver in the form of a coin, is now a word accepted as a unit of this imaginary medium of exchange - mental money. These imaginary dollar units are represented by Federal Reserve notes. A Federal Reserve note is a paper token, as evidence of a created dollar quantity of imaginary debt, written as a number entry on the books of a commercial bank. It is printed at the Bureau of Engraving and Printing on orders of the Treasury, signed by officials of the Treasury, GIVEN to the Federal Reserve for distribution, and accepted by the borrower as a medium of exchange for goods and services of value over a thousand times greater than the Federal Reserve note (dollar bill) itself.

Obtained from commercial banks by borrowing, Federal Reserve notes have no value as commodities, ". . . a dollar bill is just a piece of paper . . ." (Quote above). When Federal Reserve notes are used to purchase something of value, their value becomes that purchasing power. At the time of borrowing, their value ". . . has little but bookkeeping significance . . . ." Their value depends on CONFIDENCE, and the CONFIDENCE is not guaranteed by anything that the note could redeem; until a purchase is accomplished the CONFIDENCE in the note (dollar bill), or the imaginary medium of exchange (mental money) it represents, is in reality, unjustified.

"Currency backing isn't relevant in today's economy. Currency cannot be redeemed, or exchanged, for Treasury gold or any other asset used as backing. The question of just what assets "back" Federal Reserve notes has little but bookkeeping significance."
Federal Reserve Bank of New York Pub.
I Bet You Thought, p. 11.

Buying and selling with mental money is nothing more than a gigantic confidence game. Mental money is just a medium of exchange that does not have any value itself except to the one who gave something of value for its proxy representative (Fed. notes). Like a poker chip, that value will only be WORTH something if the money's holder can eventually obtain something of value from someone else. No matter whether it is Federal Reserve notes, copper-nickel token coinage or credit cards used in purchases, the dollars they transfer OWNERSHIP of are only imaginary mediums of exchange (mental money).

Using a medium of exchange that is entirely devoid of any substance permits its quantity to be limited only by human imagination, but goods and services depend on human exertion applied to resources over time to come into being. The producer's willingness to accept mental money for the things he produces and/or the labor he performs is the key to the system being able to work at all.

"Money works when others are willing to accept it. In a modern economy, this General Acceptability rests on a nation's ability to keep money's purchasing power relatively stable."
Federal Reserve Bank of New York Pub.
Money and Economic Balance, p. 6.
"The dollar's value always has been determined by the amount of goods and services it can buy -- its purchasing power."
Federal Reserve Bank of New York Pub.
I Bet You Thought, p. 11.

Money of unlimited quantity, created at no cost, being bid for the goods and services of the public that has to work for each and every dollar quantity of mental money does not guarantee stable prices. Those who create the mental money and get everything for nothing will always outbid those who have to work for money.

"Two much money results in excess spending. When consumers, businesses and governments spend excessively they compete for the available supply of goods and services and force prices up. When prices rise, the purchasing power of money fails. To keep purchasing power strong, then, the supply of money must not increase too rapidly."
Federal Reserve Bank of New York Pub.
I Bet You Thought, p. 11.

It is important to note that the purchasing power is not a result of the quantity of money available but how much is being spent. As its purchasing power falls more will be spent (rapidly rising prices cause apprehension and people increase buying instinctively). The more spent the further it will fall. The ability of all money users to produce enough goods and services to absorb all debt being Monetized is the key to a modem money system remaining stable and holding its value. When money's value is the product or service it will buy, only those producing and/or performing service can give money value. Only by producing goods, performing service and accepting money can the public give money value. It is the public's I.O.U.s that are the debts Monetized into mental money.

"Commercial banks are important financial institutions because they can create money -- checkbook money. When we borrow $200 at a local bank to buy a washing machine we sign an I.O.U. and the banker writes a slip for a $200 addition to our checking account. No one has any less money on deposit, but we have more. The banker has bought our I.O.U. with new demand deposits -- checkbook money -- which were created. Bank credit and checkbook money have been increased $200."
Federal Reserve Bank of New York Pub.
Money and Economic Balance, p. 17.

The Banker buys our I.O.U. by furnishing the checkbook money we need as a medium of exchange to get the washing machine. We pay for it with the money we have accepted for our goods and services. The banker does not produce goods or perform services that give money value. The formalities of borrowing and signing I.O.U.s are an attempt at controlling our spending, so money will keep its value.

This is a false conception which has been exposed by money's inability to maintain its value. It is not the quantity of money that gives it more or less value, it is the quantity being bid for goods and services that raises or lowers its parity. If the commercial bank could NOT create money to buy I.O.U.s -- UNLESS THEY PRODUCED GOODS AND PERFORMED SERVICES FOR MONEY -- then the money's value might remain stable.

"A healthy money depends on balancing the growth of the money supply with the economy's ability to produce goods and services."
Federal Reserve Bank of New York Pub.
Money and Economic Balance, p. 4.

Now, if the above quote read as follows:

"A healthy money depends on balancing the growth of the money supply with the commercial banks ability to produce goods and services,"
-- everything might balance out!

The quantity of money that people have in their possession came about by someone working for it. It was paid for by their labor. The imbalance comes about by the fact that commercial bankers have money they did not pay for. It is monetizing I.O.U.s that creates FREE money, and this causes the imbalance.

"We . . . make most payments with checks --. Checkbook funds, bookkeeping entries in banks' ledgers and computers, are mainly created by the lending activities of the nation's 14,700 private commercial banks."
Federal Reserve Bank of New York Pub.
The Story of Money, Back of Front Cover.

Fourteen Thousand Seven Hundred (14,700) commercial banks creating money, and not one of them accepting money for any produced goods or performed services. Fourteen Thousand Seven Hundred commercial banks have created a quantity of purchasing power so huge it defies comprehension. This huge quantity of money has been created and is held in a nonbidding state by being invested in various accepted ways: Pension Funds, Savings Accounts, Series "E" Bonds, Treasury Bills, etc.

The daily exchange of G.N.P. (fourth quarter '81 ) is equivalent to 8 billion dollar quantities of mental money. If a lack of confidence in money caused the Series "E" bond holders to cash in 10% of their eighty billion dollar quantities of money in any one day -- and bid it for G.N.P. -- prices might well double.

If 10% of 80 billion in Series "E" bonds seems too large a reaction, then look at 2% of the 370 billions in savings accounts; it also might well double prices in any one day. The conditions existing today are such that this could happen at any time. A reaction of this type could trigger an avalanche of spending that would drive prices upward (money depreciating) explosively. Once a runaway money depreciation begins there is virtually no way to halt it.

Federal Reserve notes represent a money that is imaginary. Without anything to be redeemed there is no way by which they can be canceled. This means we have a game of musical chairs, without the chairs.

"Money creation bookkeeping isn't gimmickry. Far from it. Banks are creating money based on a borrower's promise to repay (the I.O.U.) . . . Banks create money by "monetizing" the private debts of businesses and individuals. That is, they create amounts of money against the value of those I.O.U.s.
Federal Reserve Bank of New York Pub.
I Bet You Thought, p. 19.

For a debt to exist there must be an incomplete exchange; debt is the undelivered part of an exchange. For the debt to be settled the remaining part must be delivered. ". . . Banks create money by monetizing the private debts of businesses and individuals." We are to assume from that direct quote, (above) that debt (the undelivered part of an exchange) -- by some mysterious process called "monetizing" -- becomes the delivered equivalent part as well. (Reality would have named it "mentalizing" money instead of Monetizing" debt).

Debt as debt is the undelivered part of an exchange.

Debt as money is the delivered equivalent part of an exchange.

"Monetized" Debt is an inconceivable concept!

Yet? The Federal Reserve insists:

"Debt is credit."
Federal Reserve Bank of Chicago Pub.
Two Faces of Debt, p. 1.
"Debts are assets."
Ibid., p. 7.

Debts are debts on one side of the ledger. Debts as assets on the other side. How does one keep books? The debit side is accounts receivable RECEIVED. The credit side is accounts receivable ISSUED. There cannot be an accounts payable without a medium that can pay. Bookkeeping no longer determines net worth, but instead -- net deferred debt. Non-payment of debt forces perpetual accumulation of debt.

"A large and growing number of analysts, on the other hand, now regard the National Debt as something useful, if not an actual blessing."
Federal Reserve Bank of Philadelphia Pub.
The National Debt, p. 2.

Since debt cannot be paid, why not say: "Well! We don't think debt should be paid." Then it is only a small step to where you can say: "Well! In reality debt is a blessing!" It isn't any greater madness to think and say those things when you are totally unable to justify the monetizeddebtmadness to begin with.

"Many modem economists believe . . . the National Debt need not be reduced at all . . . Debt has a deceptive, somethingfornothing kind of charm . . . spending tomorrow's income for today's goods and services is a legitimate and valuable practice."
Federal Reserve Bank of Philadelphia Pub.
The National Debt, p. 11.
"Debt -- public and private -- is here to stay. It plays an essential role in economic processes . . . What is required is not the abolition of debt, but its prudent use and intelligent management."
Federal Reserve Bank of Chicago Pub.
Two Faces of Debt, p.33.

If there is no intention of settling debt, won't it accumulate to the point where lenders have to ask to be repaid and a possible United States bankruptcy results?

"Bankruptcy, in simplest terms, occurs when lenders demand repayment and the borrower can't make it. What are the chances that a significant proportion of the lenders of the National Debt will demand repayment?
"Very slight."
Federal Reserve Bank of Philadelphia Pub.
The National Debt, p. 8.

The whole structure of monetizeddebt as money, or debtsasassets rests on the holders of the evidence of debt (the lenders) never demanding repayment. Only if debt is ACCEPTED as PERPETUAL can it continue much farther into the future. Does that mean that if the nonbank public asked to be repaid the United States would suffer BANKRUPTCY?

"Nevertheless, let's suppose a great number of lenders (holders of government securities) decided to demand repayment all at once. Could the borrower make it? The Federal Government, with the cooperation of the Federal Reserve, has the inherent power to create money - almost any amount of it. This power makes technical bankruptcy out of the question."
Federal Reserve Bank of Philadelphia Pub.
The National Debt, p. 9.
"This power makes technical bankruptcy out of the question . . ." We cannot go bankrupt? Debt is now perpetual? Bankruptcy has been eradicated from the books of natural law! At what price?
"YET THIS POWER ALSO MAKES IT POSSIBLE FOR GOVERNMENTS TO PURSUE POLICIES THAT COULD HAVE EVEN MORE DISASTROUS RESULTS THAN BANKRUPTCY."
Federal Reserve Bank of Philadelphia Pub.
The National Debt, p. 9.

The power to create money can result in a condition more disastrous than bankruptcy: MONETARY COLLAPSE! A collapse of ALL CONFIDENCE IN MONEY, a condition the world has not seen since the Dark Ages.

"The belief is widespread that the current monetary crisis marks the end of an epoch. It is open to question whether this should be interpreted as the end of the postwar period or whether -- and this appears to be more probable -- the loss of confidence in the stability of currencies heralds an historical change."
Credit Suisse Pub. The Monetary Crisis in the
Light of Contemporary History Vol. 31, p. 3.

". . . the current monetary crisis marks the end of an epoch . . ."

"It has happened in other countries. Governments have created too much money and accelerated inflation to runaway proportions. Soaring prices then reduced the value of interestbearing securities to next to nothing. Many leaders and investors were severely hurt or completely ruined."
Federal Reserve Bank of Philadelphia Pub.
The National Debt, p. 9.

Runaway inflation, soaring prices, interestbearing securities to zero value, lenders and investors completely ruined. Loss of value due to bankruptcy could hurt all those invested with the entity going bankrupt -- company, nation or world, but a loss of all confidence in money itself is tantamount to total collapse of current means of determining exchange parities.

The public has used monetary exchange parities as the very base for the distribution of all production. More disastrous than bankruptcy, more disastrous than total loss of confidence in all money is the loss of the FACILITY of money. The use of money which was originally called BARTER lifted the world out of barbarism into civilization. The loss of the FACILITY of money can collapse our modern world into the abyss of a new dark age.

"Let us face it? There is no international monetary order -- all we have is disorder, sometimes chaotic disorder."
Swiss Credit Bank of Zurich Pub.
Recycling Petro Dollars,
Vol. 20, p. 3, by Mr. R. W. Schulthese
". . . there is a very real danger of intensified trade protectionism, which could precipitate a disintegration of the world economy . . . "
Ibid., p. 6

Could this power, to create mental money that can make BANKRUPTCY out of the question and bring about a new Dark Ages, perhaps, prevent the inevitable collapse the same way it abolished the natural law of bankruptcy?

"No parliament in the world will ever be powerful enough to override market forces for any length of time. This basic truth is unfortunately often forgotten, especially when election pledges have to be redeemed."
Swiss Credit Bank of Zurich Pub. #31,
The Monetary Crisis in the Light of Contemporary History, p. 1314.
"If they are not solved in good time, the price that will have to be paid for monetary disorder will be too high for Switzerland and for the Europe in which we live."
Ibid., p. 27

The price will be ". . . too high . . . for Switzerland and Europe" but what about the price the United States is already paying in part?

"The worldwide supply of dollars has become a flood . . ."
The Monetary Crisis, p. 23.

The Arabs have multibillions, Europe has multihundredbillions, and all imaginary mental money units as worthless as bad checks drawn on insufficient funds. What should they do with bad checks written by an entity on the verge of something more disastrous than bankruptcy. They are buying anything they can get with them, to be rid of them, before total loss of confidence reduces their exchange value to zero. They are buying land, buildings, businesses, banks, arms, anything before the collapse. Anything but things that they produce at home. Importing too much of the things that they produce would ruin their nation's economy prematurely.

"The attitude of the average U.S. citizen is quite different since the view of the relatively minor importance of external trade for his country, he is not impressed by overseas opinion concerning the U.S. currency."
Ibid., p. 11.

We are being outbid for our own goods, with our own money by foreigners. Like Argentina that produces beef but cannot afford to eat beef, that is the fate we are moving toward. A heritage born out of the inherent power of the Federal Reserve to create mental money. This power must be ended. No one should have the power to create an order upon the production of others.

WHAT MUST BE DONE NOW IS MORE IMPERATIVE THAN IT WAS WHEN THE CONTINENTAL DOLLAR WAS ENDED.

IV. PROPOSED REMEDY

THE LEGAL TENDER ACTS MUST BE REVERSED. The holders of Federal Reserve Notes and claims to demand deposits must be able to use them to bid for the titles to wealth, still remaining, that were acquired by the issuers of the Federal Reserve notes, at the time of their issuance. From that same point in time any bank should be permitted to issue 100% redeemable currency upon 100% deposits of tangible commodity; just as it now issues cashier's checks. There should be strict laws against "all" counterfeiting. Certificates of deposit should be issued, specifying the units and purity of the wealth on deposit, and available at any time for redemption by the certificate's holder. No individual should write a check without having made a wealth deposit to cover it. No warehouse should be permitted to issue certificates for material not in storage! No bank should be permitted to issue one more unit of certificates than it has deposits to cover.

Inter-bank currency clearings would function exactly as check clearings do now. The uniform wealth coinage, fabricated by government, exactly as in the Free Coinage of the past, would permit coin deposited at one bank to redeem the currency of another bank. A minimum of actual shipping of coin would be required occasionally to settle the balance of accounts. The Free Coinage aspects of this system guarantees an adequate quantity of coin wherever and whenever it is needed. JUSTIFICATION: Natural Law forces a discipline upon the use of precious metals coin as BARTER that cannot be matched by manmade law. Value is a human concept, that is, it is subjective. Parity is the value of something expressed in terms of another thing!

Since all humans create their own sense of values - nothing has a fixed value or a constant parity. Currency redeemable in gold coin would represent that gold coin by proxy, and have the parity of the gold (weight and purity( in the coin represented. Currency exchange value in relation to commodity of service would be exactly that of the wealth it can redeem. No one should attempt to fix the parity of any currency in relation to any other currency or commodity, domestic or foreign. Natural Law regulates parities in a free market.

Parity changes inspire increases or decreases in production of various commodities and offerings of services. This Natural Law regulation assures adequate volume of all goods and services except when shortages develop due to natural causes. Adherence to the Natural Laws of a free market would permit complete compatibility to multimetal 100% redeemable currency systems.

A free market is one in which the public is able to exchange production or services by competitive bidding, open to all, in the absence of any government restriction and subject only to its own selfimposed restrictions.

In a free market, all commodities must be free to seek their own parities in relation to all other commodities - without exception -- or the market is not free.

A free market is only possible with Free Coinage, and government minting is limited to control over weight, purity and striking of the precious metal they coin. The quantity of coin produced is limited to the amount of precious metal brought to the mint by the public for coining, thereby assuring adequate volume at all times. Natural Law would again be the determining factor.

At present the entire world is using currencies representing monetized debt as the money. ANY ATTEMPT TO SHUT-OFF THIS MONEY BEFORE THE INTRODUCTION OF 'SOUND' CURRENCY TO TAKE ITS PLACE WOULD SPELL INSTANT WORLD-WIDE MONETARY COLLAPSE.

"At present, in virtually all modem monetary systems the base consists of either central bank liabilities, government liabilities, or both. These items are the ones used to settle inter-bank debt and some circulate as money."
Federal Reserve Bank of St. Louis Pub.
Review, November, 1976 p. 4.

Here at home, the American public must have its U.S. Constitutionally guaranteed right of contract restored. The Legal Tender Acts must be repealed and the new 'sound' currency introduced. The old irredeemable currency would gradually but increasingly depreciate until it ceased to be used by anyone. The introduction of a new 100% redeemable currency put into use, would force out irredeemable currency by the discount that would expand between the two currencies.

Gresham's Law, which is often cited, states: "Bad money drives out good". It does not explain that it only occurs when the bad money is made Legal Tender! Repeal the Legal Tender Acts, as suggested above, introduce 100% redeemable, 100% reserve deposit currency (good money) and it will drive out the bad money.

AS SOON AS ALL THE FEDERAL RESERVE NOTES AND ALL DEMAND DEPOSITS ARE GONE, THE LEGAL TENDER ACTS SHOULD BE FINALLY ABOLISHED.

The secret of good government, peace and prosperity lies in the ownership of the medium of exchange. When the people own the currency and coin they use, then government depends on the public's support for its survival, and the public directs the policies of government. If any other entity owns the medium of exchange, that the public is forced to use -- that entity directs the policies of government and through government, controls the people.

"It is the product of a prodigious collective error which will remain in history and will eventually be recognized as an object of astonishment and scandal."
Jacques Reuff 1961.

Our right of contract was lost when the words: "This note is Legal Tender for all debts public and private" REPLACED: "pay to the bearer on demand" on our currency.

Our right of contract and freedom will return after we have returned to a 100% coin reserve for a 100% redeemable currency and all Legal Tender Acts have been abolished.

"Legislation on the subject grew bitter; but finally, in June, 1781, all the Legal Tender Laws were repealed."
The Financial History of the U.S. 17741789,
by Albert Bolles

Specifically, I propose we do not permit our nation to be sacrificed on this treadmill to financial oblivion, but that we rescue it now by initiating Federal Reserve bankruptcy proceedings. Consider the Fed. notes held by their holders as valid claims upon the remaining wealth in the hands of the Fed. note issuers. Audit that remaining wealth and auction it off bank by bank, holding company by holding company, allowing the holders of Fed. Notes to bid freely. Those who will accept less as a settlement of claim will bid highest. Those who wish greater settlement of claim will bid lowest. This procedure would guarantee to all holders, a greater return than if all Fed. Notes were allowed to become worthless. This procedure would be more equitable than a deflationary exchange that would rob all Fed. note holders, and allow the bankrupt to retain title to all the loot gained by their issuance.

IMMEDIATELY UPON A SUCCESSFUL BID, ALL FED. NOTES OR DEMAND DEPOSITS REPRESENTED BY CHECK WOULD BE DESTROYED UNTIL THE BOOKS WERE CLEAR.

This proposed reversal of the Legal Tender Acts would guarantee the most honorable and most equitable bankruptcy proceedings under the conditions that exist. Bank Presidents, as well as employees, who are holders of the monetized debt currency would be permitted to bid at the auctions. Only that wealth, still remaining, that was acquired by the creation and initial issuance of the monetized debt currency would be forfeited by the bankrupt.

That wealth not remaining had been lost forever and cannot be retrieved. No purpose would be served by retribution. All the irretrievable wealth lost to the non-bank public should be considered by them as the cost of their education. Never again should the non-bank public allow themselves to become unaware of their responsibility to be constantly alert.

It should be realized that it took many generations to develop and perfect this hoax. The exact purpose or intention of its founding bankers has been gradually obscured over time and is lost to us today. Whether it was altruistic or personal greed we cannot punish the original instigators, and it would be impossible to prove evil intent on the part of the present day perpetrators of the hoax. Modem bankers are themselves victims of the hoax too. The entire world's population is to some degree a victim of this money hoax. The implementation has been so gradual and subtle that very few will accept the existence of the hoax even now. The bankers actually involved in the hoax are not aware of the significance of what they are doing.

"I doubt that monetization of debt has been a conscious act on the part of government or on the part of the Federal Reserve System."
Darryl R. Francis, Former President
Federal Reserve Bank of St. Louis
"I am beginning now to wonder whether I finally grasped the significance of what we were doing, at the time, and of the causes for the action we were initiating."
Robert V. Roosa, Former Asst.
Secretary of the Treasury, 1973.

Being unaware of the true significance of what they have been and are doing assures that it will be doubly difficult for them to accept the viability of the solution suggested here. Everyone seems to accept that if it had not been for the mental money we would not have had the progress to date. That is a misconception easily dispelled.

Everything accomplished to date is the result of the efforts of human beings. To say that monetized debt made it all possible is to ignore the primary function of monetizeddebtmoney.

"Inflation, even if correctly anticipated, reduces the wealth of money holders in proportion to their holdings of money."
Federal Reserve bank of St. Louis
Review February, 1975, p. 19.

Humans built the buildings, humans dug the canals, humans grew the food, humans built the ships, etc. All the money ever did is expropriate the title to wealth. Those who did the work very seldom became the owners of the results of their labor.

Everything that was accomplished during the periods of inflation (monetized debt) could have been accomplished if wealth had been used as a medium of exchange instead of money.

When gold and silver coin were the U. S. money of account, it did not matter that they were called money! Gold and silver is wealth, is produced by human exertion, is barter per se or a medium of exchange determined by its use.

Loans were made with gold and silver coin. Projects were financed with gold and silver coin. All manner of sound banking techniques were just as viable and facilitating as any false medium, but a gold and silver sound medium would have guaranteed that the general public who did the work would have owned the benefits derived therefrom. The problems and misery suffered by non-bank public has never been due to the techniques of sound banking; that belief is a monstrous misconception. The fault has always been with the nature of the medium of exchange.

"All the perplexities, confusions and distresses in America arise not from defects in the Constitution or confederation, not from want of honor or virtue, as much as from downright IGNORANCE OF THE NATURE of coin, credit, and circulation.
John Adams

Every economic professor, government advisor, financial advisor, economist of the Keynesian, Monetarist and even Austrian schools, say inflation is a CONDITION caused by an excess QUANTITY of money chasing too few goods, and that the solution is to increase productivity.

It has always been, it is now, and it will always be that, if the NATURE OF MONEY is anything but production, it will exceed production by whatever they call that -- non-production -- excess.

Inflation is not a condition. It is a thing. Inflation is an imaginary medium of exchange -- money -- monetized debt! Inflation is a thing that cannot register on the five human senses. Money that cannot register on the five senses is imaginary money -- monetized debt -- that is, inflation per se.

PRODUCTION IN ANY FORM AS THE MEDIUM OF EXCHANGE CANNOT EXCEED ITSELF!

Surrendering real for unreal, wealth for monetized debt tangible for intangible, in all cases is the expropriation of private property by the creators and issuers of the unreal, monetized debt, intangible medium of exchange. It is the nature of it being unreal, and intangible that facilitates the expropriation. From the first unit to the last, inflation is always 100% fraudulent acquisition of the producer's wealth by those who do not produce any tangible thing.

This invisible robbery has been going on intermittently for the past 200 years of United States history. The title to Wealth passing into the hands of the money creators is equal to the exact amount of money created -- 100%. 1 unit of "money" is 1 unit of expropriation is 100% inflation. 1,000 units of "money" is 1,000 units of expropriation is 100% inflation. 100,000 units of "money" is 100,000 units of expropriation is 100% inflation.

Inflation is the thing -- monetized debt -- money - imaginary medium of exchange, is always 100% of the amount issued whatever the actual count of units.

If the medium of exchange was all produced goods or human labor performed, the total amount that could be exchanged would be 100%. If any part of the medium of exchange was intangible the total quantity that could be exchanged would be 100%, of all that had been issued.

The quantity of intangible or tangible mediums of exchange being BID for production determines the parities of units of production in relation to the units of medium of exchange (usually referred to as prices). These parities are determined by the quantity of units of medium of exchange being bid per unit of production available NOT by the total QUANTITY OF money.

The existence of the imaginary mediums of exchange permits the BIDDING PER UNIT QUANTITY (of money) TO EXCEED THE PRODUCTION UNIT QUANTITY. If that EXCESS IS BID the parity of production will rise in relation to units of money.

This could not happen if all mediums of exchange were production. If all mediums of exchange were production -- which would be all the goods and services available for exchange -- it could not exceed itself (100%).

When real (tangible) mediums of exchange are removed and replaced by unreal (intangible) mediums of exchange, their NATURE of being imaginary permits their QUANTITY to increase as a RATIO in relation to the quantity of units of production available for exchange; imagination can conceive faster than goods can be produced or services performed.

The quantity of the intangible medium of exchange is Constantly accelerating. It is this quantity being bid per unit of goods and services which causes price escalation. Since no amount of monetized debt can be any amount of debt settlement, the fraudulent acquisition is constant at 100%.

Prices rise with increased quantity of money being bid per unit of production:

"Money" Increases (Parities) Rapidly	Inflation Remains Constant	Production Increases Slowly	"Prices" Volume Rising Rapidly
1 unit =	100% bid for	1 unit =	1:1
100 units =	100% bid for	2 units	50:1
1,000 units =	100% bid for	4 units =	250:1
1,000,000 units =	100% bid for	5 units =	200,000:1

The ever increasing price escalation in no way increases the percentage of expropriate, but the increase in the quantity of money increases the quantity of fraudulent acquisition. Prices rising expose the fraudulent acquisition but do not affect the rate of inflation which is constant at 100%.

What makes the truth appear strange and confusing is the fact that no one ever works for the money per se, but works for what they intend to exchange the money for. All exchanges are really exchanges of the result of one individual's human exertion for the result of another individual's human exertion. Swapping the results of human exertion for the results of another's human exertion even though money may be used as a medium of exchange does not alter the fact it is EVENTUALLY indirect barter.

The use of monetized debt represented by Fed. notes as a medium of exchange allows the prices rising to expose the depreciation of the Fed. notes in their primary function of expropriating wealth by fraud. The changes in prices (parities) expose the lowering parity of Fed.-note-represented monetized debt units in relation to goods and services available. The fact that all goods and services exchanged for Fed. notes are 100% fraudulently acquisitioned by the nature of the money itself does not permit prices rising to affect the rate of inflation.

All that the nonbank public produces and exchanges for Fed. notes is 100% expropriated by inflation (modern money), there isn't anything remaining to be affected in any way by price changes. Price changes are the parity ratios adjusting to the excess quantity of imaginary money units being bid as mediums of exchange: money is not an end in itself. If money is worth less at the time of its use in bidding than when it was acquired, it can appear that its depreciation was injustice, but it does not change the rate of inflation or expropriation which was accomplished with the money issuance (i.e. 100%).

It is failing to consider the TIME FACTOR that causes the confusion. Money, being intangible, expropriates by 100% whatever it is initially exchanged for at the TIME of issuance. After its initial primary function -- that of expropriating wealth -- has been accomplished with its issuance, its further use is simply as a medium of exchange and its depreciation as a medium of exchange can favor the debtor over the creditor, but cannot affect the original rate of expropriation which is a constant 100%.

If the expropriation of wealth had not been acquiring the ownership of everything for the issuers of monetized debt; everything would still be there, but it would be owned by the producers (the nonbank public).

"Money is the most important subject intellectual persons can investigate and reflect upon. It is so important that our present civilization may collapse unless it is widely understood and its defects remedied very soon."
Robert H. Hemphill, Former Credit Manager,
Federal Reserve Bank of Atlanta

"Bankers own the earth. Take it away from them but leave them the power to create money and control credit, and with a flick of a pen they will create enough to buy it back."
Sir Josiah Stamp, Former President Bank of England
"If, however, a government refrains from regulation and allows matters to take their own course . . . the worthlessness of the money becomes apparent, and the fraud upon the public can be concealed no longer."
John Maynard Keynes, Consequences of Peace, 1920
"The prime function of government is the protection of the different and unequal facilities of man for acquiring property."
James Madison
"No other rights are safe where property is not safe."
Daniel Webster

The NATURE of, "money" is at the root of all our problems. There is not any undesirable condition in our nation today that cannot be accurately and totally traced back to the root of all evil, the power to create money.

It is not WHO has the power to create money that is the root of evil. It is the power to create money at all! There is only one way to abolish the evil of money creation -- ABOLISH MONEY.

Money is an abstract term that was applied to batter in error.

Money is an abstract term for the mental entity that has replaced the barter.

No person or agency, government or private, shall determine what anyone must accept as Lawful Tender!

"No state shall . . . pass any . . . Law impairing the Obligation of Contracts . . ."
U.S. Constitution

No coins shall ever be minted bearing an abstract monetary term.

All coin shall bear its commodity specification, fineness of purity, and weight specification, such as G.9991,000 gr. (Gold .999 Pure 1000 Grains) or S.999500 gr. (Silver .999 Pure 500 Grains) or .9991500 gr. (Platinum .999 Pure 1500 Grains) or C.999750 gr. (Copper .999 Pure 750 Grains) etc.

No person or agency, government or private, shall determine how many of any coins of any commodity shall be coined.

No person shall be prohibited from bringing metal of the proper coin purity to the mint for coining free of charge with the costs of minting to be paid out of general funds of the government.

No person or agency, government or private, shall set any value or parity between the coins as minted and any other commodity or between the coins themselves.

No person shall be prohibited from fabricating coins of private design, using the same marking system described above, using any commodity, in any quantity, but there shall be severe penalties for any improper marking.

Banking procedures shall remain relatively the same as they have been, except that all bookkeeping and check writing must specify the commodity and its weight deposited or ownership transferred.

All state and federal taxes shall be payable in gold and/or silver coin. All state and federal expenses shall be paid with gold and/or silver coin as specified in its contractual arrangements. Checks may be used to transfer ownership of government coin.

The specifications, as outlined above, would cancel the injustices and corruptions being suffered daily in our nation and true progress would be resumed.

FINIS

2008-07-23T09:57:00.003-05:00

Christmas in JULY Gold on Sale at 920 and Silver at 17.37

Please do not think that I have gone back to the old pagan celebrations of so called X-mas, what I am referring to what RETAIL market Capitalist refer to and what is defined in WIKEPEDEA as Christmas in July, alternatively Holiday(s) in July in the United States, is a party concept exploited as a marketing opportunity.[citation needed] It generally occurs during the month of July coincidentally near July 26, ....

Well it is July 23 and without telling anyone about it. the manipulators started a BIG SALE on GOLD and SILVER just ahead of schedual. Those of you watching this need to be aware that the market fundamentals have not changed except for the worse and that the reset of the world is going the same way as the US if not worse already.

Who knows why they wanted to put up this sale but here it is... It could possible even go a little lower but for those of you looking to dollar cost average your silver and Gold holdings this looks like a possible short lived window of opportunity to get a little extra.

Note this should have been put up at about 9:30 am but the Net connection was bad so now it is 4:30 Silver at 17:38 and Gold at 919 OIL Down
The sale is still on...

Side Note:
\If ou have an opportunity to trade GOLD for Silver at 53 to one now would be, in my opinion, a good time to do it. The other day it was about 51 to one. So you would be getting two extra ounces of Silver today.

2008-07-11T07:50:00.005-05:00

I see trees of green, Red roses too....

Freddy and Fanny , two Government Created companies that are floundering own over half of the 12 TRILLION DOLLARS worth of mortgage debt. Do not let anyone fool you with vain words, these two are insolvent. Now the Government is looking at ways to save their little fascist couple and allow them to live a little longer. The problem is however that the Government is way beyond their constitutional limitations on several counts. One being the creation of these companies by the Fascist FDR in the 30s and Nixon in the 70s. Another being their plan to tap all the taxpayers in the country in order to bail them out. One fellow with some fiscal understanding said it best:

"The federal government can't afford to take over all of Fannie Mae's and Freddie Mac's operations, because such a move would more than double federal government debt outstanding and ``have disastrous consequences for the dollar,'' said Joshua Rosner, an analyst with Graham Fisher & Co. Inc. in New York."....

United States -
TOKYO, July 11 (Reuters) - The U.S. government is considering taking over the top U.S. mortgage lenders Fannie Mae and Freddie Mac and placing them into conservatorship if their problems worsen, the New York Times reported, citing people briefed about the plan.
Under conservatorship, the shares of Fannie and Freddie would be worth little or northing, and any losses on the mortgages they guarantee would be paid by taxpayers, the New York Times said in the report published late on Thursday....

Folks this is real real big and as long as it is look for Gold to be up and the dollar down in relationship to real stuff. Also keep an eye on Israel and their sabre rattling. They know that a threat to bomb Iran will drive the price of Oil up.. and if they do it .. WAY UP and that helps their bottom line in wall street. Could you imagine being able to control the price of your commodities and your investments just by bombing or threatening to bomb another country?

July 11 (Bloomberg) -- Crude oil rose more than $4 to a record on concerns that Israel may be preparing to attack Iran, while a strike in Brazil and renewed militant activity in Nigeria threaten to cut supplies.
Oil rallied to a record high of $145.98 a barrel after the Jerusalem Post said Israeli war planes practiced over Iraq, adding to speculation the country is preparing to attack Iran.

Update: 9:16 AM OIL: 146.45.... GOLD 961.50.... Silver 18.61... DOLLAR DOWN (72.27)
Update: 10:13 PM OIL: 144.41...GOLD 965.40....Silver 18.87... DOLLAR DOWN (71.89)
DOW JONES DOWN 128.48
UPDATE 7:55AM 7/15 OIL 146.21....GOLD 986...Silver 19.46..DOLLAR DOWN (71.40)
P.S. Lowest EVER AGAINST THE EURO....1.6006
And now you know another reason we went into Iraq....

What a wonderful world...

2008-07-15T06:06:00.002-05:00

LawnMan Financial Adviser?

My children and I have a sort of joke when it comes to the financial world and Gold and Silver and just all around economics: "The Lets call the lawn Guy".

How is it that the gurus at the Big Firms in town can be so terribly , deliberately BLIND when it comes to the inflation problems and Bank problems until just the day before or the day after an implosion or collapse and yet the average guy on the street, with no education in financial matters can figure out that something has been wrong for a very long time?

Paulson, BerNecktie and the financial parrots on FOX CNBC and the other " Fair and Balanced mainstream news reporting groups are circling the wagons and telling everyone that there are no real problems at MAY and MAC and that the so called banking problems are rumor driven only... MEAN WHILE back at the bat cave more and more banks are going under. FDIC can not cover the losses and MAC and MAY are for all other accounts insolvent.

HINT: When ever the talking heads are telling you NOT TO WORRY and that there is no need to PULL YOUR MONEY out of the BANK.... it is time to wake up early and go and get all your money out of the bank. Do the opposite that they say. Push come to shove and they manage to get back on the feet HAHAHAHAHAH, you can always put your money back, If however they are telling "NOT TRUTHS" again and you wait you will simply be waiting in line for an FDIC promise. If you have any REAL cash in the bank ( Over 100,00 or in special cases 250K jointly) you are simply a FOOL to keep that cash without even the glimmer of a hope for FDIC help in jeopardy.

THE FULL FAITH and CREDIT of the US Government will back up MAY and MAC? Sure they will. and who will they borrow the money from in order to do that when the banks are folding up and the FED has spent all its extra FRNS gobbling up half the mortgages in the country?

OH sure the Federal Government can simply PRINT the extra they need and then give it to the Federal Reserve and borrow it back at interest to do the job, or the Federal Reserve could just push congress to give them even more power and some how become the BEAST without whom you can not buy or sell.

MEANWHILE out in the yard.... We have been telling you for YEARS to get out of the so called financial institutions and become self sufficient, The gurus said buy Stocks and Bonds and get that whopping 3.5%, or in the case of Stocks, just a straight scrubbing. While we have said buy Gold and Silver, Keep you cash on hand ( Not in Banks) and prepare for the very thing you see happening around you right now.
The Dollar has hit yet again a record LOW against the Euro

"July 15 (Bloomberg) -- The dollar declined to a record low against the euro on speculation Federal Reserve Chairman Ben S. Bernanke and Treasury Secretary Henry Paulson will say credit- market losses are hurting U.S. economic growth.
The currency also weakened to the lowest level in more than a month against the Japanese yen and to a 25-year low versus the Australian dollar on concern confidence in the debt of Fannie Mae and Freddie Mac will wane even after the U.S. government pledged support for the two-largest buyers of home loans. The pound surpassed $2 for the first time since July 1 after U.K. inflation quickened to the fastest pace in at least 11 years.
``The markets are reacting negatively to the renewed credit crisis in the U.S. and that's hurting the dollar across the board,'' said Roberto Mialich, a Milan-based currency strategist at Unicredit Markets & Investment Banking, a unit of Italy's largest lender. ``The market is speculating that Bernanke will offer a gloomy outlook for the U.S. economy.''
The dollar declined to $1.6038 per euro, the lowest since the euros inception in 1999,"

Gold is at over 980 and Silver over 19.40 and the stock markets around the world are in a tumble.. RUMERS? Come on BerNecktie and Paulson you can do better then that.

"U.S. producer prices increased 8.7 percent from a year earlier in June, "

IMHO The only way to make the Dollar look good and the American economy to not look do bad is to SINK a few other economies out there. Tank the Australian or the Euro economy. Bring Briton to her knees cause an accident or another 911 type distraction.

Will the Market go below 11k today? Funny thing is it already has if you think about it in Dollar FRN spending value in fact when you figure it that way and after taxes when cashed out the Stock market tanked well below 5K a long time ago..

What are you waiting for?

2008-07-10T09:57:00.002-05:00

Here we Go again,

If you thought that there were going to be problems when the credit crises hit the banking institutions went belly up just wait till the market finally faces the reality that FreddyMack and FannyMay are insolvant. Jus as I said over two years ago after reading a small article, these two GOVERNMENT WELFARE PROJECTS are poorly run and they are set to fall. The problem is they are tied to almost half of all the mortgages in the country and millions of families will be effected when it happens. Investments in these two socialist projects needs to to abandoned. If I had money in them as an investment, I would get it out ( I never would have put a dime in in the first place just on moral grounds) They are insolvent by any ones financial reckoning and they have been for quite some time. if the Government and the FED had not been dumping all their free FRN's in there in the first place the 1970 project would have gone belly up long ago. It is wrong for the government to be a LOAN officer. It is UNconstitutional for them to Charter companies and get involved in the "market". Unless of course we are not in America anymore and are in reality Amerika.
Gold is way UP.. they are blaming Iran's missile tests, however after looking at bloomberg's story on Fanny and Freddy you will see the real reason....

Fannie, Freddie Tumble on Bailout Concern, UBS Cut (Update1)
By Dawn Kopecki and Shannon D. Harrington
July 10 (Bloomberg) -- Fannie Mae and Freddie Mac, the two biggest providers of financing for U.S. home loans, tumbled to the lowest in 17 years in New York trading after a former Federal Reserve president said the companies may need a government bailout.
Fannie Mae tumbled as much as 20 percent and Freddie Mac slumped as much as 29 percent in New York Stock Exchange composite trading after UBS AG analysts said the company creates ``challenges'' for the company's plans to raise $5.5 billion, UBS analysts said in a report today.
Chances are increasing that the U.S. will bail out Fannie Mae and Freddie Mac because they don't have enough capital to weather the worst housing slump since the Great Depression, former St. Louis Federal Reserve President William Poole said in an interview. Freddie Mac owed $5.2 billion more than its assets were worth in the first quarter, making it insolvent under fair value accounting rules, he said. The fair value of Fannie Mae's assets fell 66 percent to $12.2 billion, data provided by the Washington- based company show, and may be negative next quarter, Poole said.
``Congress ought to recognize that these firms are insolvent, that it is allowing these firms to continue to exist as bastions of privilege, financed by the taxpayer,'' Poole, 71, who left the Fed in March, said in the interview yesterday.
Fair value accounting measures a company's net worth if it had to liquidate all of its assets to repay liabilities. Fannie Mae and Freddie Mac, both of whom have the implicit backing of the government, make money by borrowing in the bond market and reinvesting the proceeds in higher-yielding mortgages and securities backed by home loans.
`Inflection' Point
Fannie Mae slumped $2.70 to $12.61 at 10:19 a.m., extending declines for the year to 69 percent. Freddie Mac tumbled $2.96 to $7.30, taking its 2008 slide to 78 percent. UBS AG analysts led by Eric Wasserstrom in New York increased their estimates for losses at Freddie Mac and cut their price target for the stock to $10 from $28 after meeting with Freddie Mac's chief financial officer Anthony Piszel and controller David Kellerman, according to a report today.
Fannie Mae and Freddie Mac have raised a combined $20 billion since December to cover losses of more than $11 billion generated since the credit crisis began last year. Freddie Mac has yet to raise a planned $5.5 billion, scheduled for mid-year. ....."

now you know the reason Paulson went on in his speech the other day about there needing to be a way for the " biggest institutions " to be able to go belly up.... The biggest institutions are GOING BELLY UP.

2008-07-03T06:56:00.002-05:00

Sorry kids no fire works today we need to buy Gasoline

THE EU Fixing to SMACK the Buck yet again as the EU will most likely raise their interest rates making their EURO more appetizing for investors. as they would most likely abandon the BUCK in order to gain a better interest rate in Europe. the battle to the bottom between competing FIAT monies is something very interesting to watch. This should cause Gold and Silver to Gain yet again, as they have been over the last few days as Federal Reserve Notes become more and more obvious as a BAD investment. Lets face it why would you invest in something that has a GUARANTEED LOSS built in every year since it was created? Gold at 950 very soon and Silver at 18.75 minimum? The premiums on online Gold sell companies like KITCO are already selling their Gold Eagles for 996+ and their 5 NINE Canada for over 1000 per ounce.( Not including shipping. Will it last?
OIL is 145+ per barrell and the Dollar index is at almost down to 72 with the EURO looking hard at 160+. Todays trading is going to be a short day so that America can pretend they are free tomorrow, so watch for high volume on the market and posible big swings and gains and Losses..

IN MY OPINION
Gold UP Silver UP inflation UP

JOBS GOING GOING GONE...

Americans "We can always tap into our retirement accounts now that all our home equity is gone and our savings are dried up."

Sorry kids no fire works today we need to buy Gasoline...

2008-04-01T08:49:00.003-05:00

The World is Upside Down.

When the Giant Falls the little people to close will be crushed... This seems to be the problem around the world of unjust weights and measures, the whole world is being dragged down in a tumble effect with the imploding us economy, new measures must be implemented and so the treasury department and the Federal Reserve will be using this time as a consolidation time for power. They are saying that they are doing things that were only done back in the Depression, to be sure they will be doing more. This is going to be the time that try men's souls. The rest of the worlds paper tigers need to be taken down a few notches, ( we can not allow some other country to seem prosperous). The YEN, the EURO and the POUND need to fall ( as compared to the dollar) while all the while your staples Go up and big ticket Items are marked down ( Houses Business property, CD's Etc)

Personally I think it would be a good Idea with these NEW CIRCUMSTANCES to exchange some Gold and Silver in exchange, not for Stocks and Bonds but for tools, equipment and ammunition. The need to be able to make a living , ( As Ron Paul said in a interview that we had with him last year) for oneself and be able to change prices to match the economy without being a slave to someone else' budget, is paramount.

The super wealthy Families will have no problems as they are are all the cause of the unjust weights and measures system, that is the world's system, they KNOW BEFORE HAND WHAT TO DO and you and I are forced to react to them.

SO WHAT TO DO.
With work getting scarce you will need to diversify your willingness to work at different things, you may need to look about you and find a need or create one. BE SELF RELIANT in your work.
( Most folks say self Employed, but that is a BAD WORD FOR FREE MEN)

Those that have some cash will do better then those who are begging for a Check or that have to wait for one.

Silver and Gold will be hard to get if you do not have a JOB.

Those with EXTRA CASH ( Paper tigers) be looking for buying opportunities in Silver and GOLD and Ammunition and FOOD STUFFS.

START A GARDEN.

The Folks at the top of this food chain are going to be looking for whom they may devour.

Please go to our Website on http://www.preachingprivacy.blogspot.com/

YOUR LIST:
At least 3 Months RENT or MORTGAGE payments set aside....CHECK
6 months MINIMUM food backup supply....CHECK
Silver.... CHECK
GOLD.....CHECK
Eliminate Credit Card DEBT ....CHECK
NO MONIES ( FRNS or OTHERWISE) in the BANK....CHECK

Watch for food shortages in certain sectors, ( Wheat, Corn)

OK. Now let's assume for a moment that America is going to be fine as for as most financial folks are thinking, STEP BACK A MOMENT, Do you want to live Biblical or do you want to live WallStreet?

OK USURY: INTEREST

Psalm 15:1-5 LORD, who shall abide in thy tabernacle? who shall dwell in thy holy hill?
2 He that walketh uprightly, and worketh righteousness, and speaketh the truth in his heart.
3 He that backbiteth not with his tongue, nor doeth evil to his neighbour, nor taketh up a reproach against his neighbour.
4 In whose eyes a vile person is contemned; but he honoureth them that fear the LORD. He that sweareth to his own hurt, and changeth not.
5 He that putteth not out his money to usury, nor taketh reward against the innocent. He that doeth these things shall never be moved.

Ezekiel 18:5-9 But if a man be just, and do that which is lawful and right,
6 And hath not eaten upon the mountains, neither hath lifted up his eyes to the idols of the house of Israel, neither hath defiled his neighbour's wife, neither hath come near to a menstruous woman,
7 And hath not oppressed any, but hath restored to the debtor his pledge, hath spoiled none by violence, hath given his bread to the hungry, and hath covered the naked with a garment;
8 He that hath not given forth upon usury, neither hath taken any increase, that hath withdrawn his hand from iniquity, hath executed true judgment between man and man,
9 Hath walked in my statutes, and hath kept my judgments, to deal truly; he is just, he shall surely live, saith the Lord GOD.

LET IT NOT BE SAID OF ANYONE READING THIS:
Eze 22:12 In thee have they taken gifts to shed blood; thou hast taken usury and increase, and thou hast greedily gained of thy neighbours by extortion, and hast forgotten me, saith the Lord GOD.

DEBT: STAY OUT OF IT>

Pro 22:6 Train up a child in the way he should go: and when he is old, he will not depart from it.
Pro 22:7 The rich ruleth over the poor, and the borrower is servant to the lender.

Those that are manipulating the economy and consolidating power, know exactly what they are doing. All the folks who lost their homes and jobs and are living in the street have been persecuted for a purpose. The great enslavement is underway, the tagging of the people, the masses, where everyone will be marked to buy and sell is underway, but first they need to get you dependant. They want you to BEG FOR IT.

God Has something for them however...

Amo 8:4 Hear this, O ye that swallow up the needy, even to make the poor of the land to fail,
Amo 8:5 Saying, When will the new moon be gone, that we may sell corn? and the sabbath, that we may set forth wheat, making the ephah small, and the shekel great, and falsifying the balances by deceit?
Amo 8:6 That we may buy the poor for silver, and the needy for a pair of shoes; yea, and sell the refuse of the wheat?
Amo 8:7 The LORD hath sworn by the excellency of Jacob, Surely I will never forget any of their works.
Amo 8:8 Shall not the land tremble for this, and every one mourn that dwelleth therein? and it shall rise up wholly as a flood; and it shall be cast out and drowned, as by the flood of Egypt.

2008-03-22T09:15:00.004-05:00

If a Tree Falls in the Wilderness and Kills the only one there....

Does anyone remember what happened the day before the twin towers were destroyed? Lots of Put Options. Folks basically betting that certain stocks were going to IMPLODE in value ( United Airlines) while at the same time Other companies were going to EXPLODE in value,( defence contracts and anything to do with the planed war) (Click Itallics for link)

On the other hand there are always stories that get buried by terrible events, stories so damning that only an even greater story , a more terrible story can over shadow it. Namely that on September 10 2001 Donald Rumsfeld and his experts , held a press conference wherein he admitted that the Pentagon has misplaced over 2.3 TRILLION dollars. This is big Big BIG. but what happened less than 24 hours after this disclosure? Sept. 11 2001. As Rumsfeld put it "According to some estimates we cannot track $2.3
trillion in transactions,"

Personal note, Would it not be cheaper to print the 2.3 Trillion then to try to find it?

I guess that why the Pentagon is getting all the money they need for anything they need it for.

Anyway. I digress..Why would the owners of two companies that Bloomberg news is stating are being saved by the FED. sell their stakes in the very companies that they run?

Documents filed with the Securities and Exchange Commission on Thursday
March 20 show that Goldman's President and Co-Chief Operating Officer Jon
Winkelried sold some 30,000 shares at about $173.85 each, totaling
approximately $5.2 million, from Wednesday to Thursday. Vice Chairman Michael
Sherwood unloaded some 7300 shares at a per share price of about $174.85,
totaling close to $1.3 million Wednesday. Goldman could not be reached for
comment.

Why did the price of GOLD and SILVER GO UP between the NY Close and the dead zone that is Good Friday for the rest of the world? Silver went up from 16.81 per ounce to 17.31 per ounce, yet Bloomberg still has the front page head lines of the great catastrophe of the Commodities bubble bursting and the FED's brilliant moves to save the world? The Dollars great GAINS!! Yet it is well below 72 on the dollar index? A Massive inflation of the money supply and somehow this is a cause for an increased dollar value? Federal Interest rates down and somehow this is supposed to be a great boost for folks wanting to invest in dollars?
Melinda peer asks the question
"What if the other shoe drops but no one hears?"
And then shares the conspiracy ( my word not hers) showing how these big companies ratings are falling.. ( remember Bear Stearns Spent the days before their IMPLOSION telling everyone every thing was OK!)
"Standard & Poor's analysts tested the tree-falling-in-an-empty-forest
scenario, as it lowered the outlooks for Goldman Sachs and Lehman Brothers to
negative while markets were closed."

A must read article:
"Not So Good Friday For Goldman and Lehman"

2008-03-22T01:07:00.002-05:00

IRS delivers stunning reversal on the American Gold Eagle / Income Tax Question

As we have been sharing for quite some time now, America is still on the Gold Standard, however most AMERICANS are on the paper Standard. The Treasury coins Gold and Silver and Platinum coins in various lawful denominations and those coins are lawful money. ( they keep using the term legal tender, but they are actually Constitutional Money. They need no government edict to have value, they are value in and of themselves. This being said however, they are minted with Dollar Amounts on them ( Not federal Reserve Amounts). The Gold Coins come in 50$ 25$ 10$ and 5$. The Silver comes in a 1$ Coin and Platinum comes in 100$ Coin. Anyway these coins have legal tender value, at least according to the mint and the treasury department.

OK so what is the big deal? If they are legal tender and you are payed with a 50$ Gold coin, how much do you have you earned?

Well 50$ that's how much, never mind it is GOLD or PLATINUM or SILVER. it is legal tender based upon what is printed on the coin.

OK so then why not use them as legal tender. OK

You buy a car for 1000 legal tender Units represented by 10, 100 Unit federal Reserve notes, you pay how much in sales tax? OK what would be the sales tax if you bought it for 50 legal tender Units in the form of a American Eagle one ounce Gold Coin? ( your state may vary, just fill in your your sales tax percentage)

What about reporting liabilities on Taxes if you are a tax payer?
Please follow the following LINK to read an article that seems to confirm what we have been sharing with folks all along in regard o this split tender standard. It seems that the IRS Admits that if your corporate gain was in 50 Dollar America Eagles your reporting requirement would be 50. not the market value of the coin, but rather the Legal tender value of it. Please read this article and let me know what you think.

Please also read this article American Gold Eagle preys on the IRS.

2008-03-16T21:16:00.002-05:00

This sermon was on LIVE RADIO in Ocala Florida March: This program talked about Practical Economics and survival.

Gold was 1003 per ounce at the time and Silver was 20.73. Diesel Fuel was 3.99.9 per Gallon and Gasoline was 3.23.9 per Gallon.

Why is your preacher not aware of this stuff? Is it possible that he is aware but is AFRAID to talk about it because he is afraid you will panic and ask more hard questions he is not prepared to answer.The whole task of the pastor should be to tell you the hard stuff too. Where do you think he will be when your family is starving because he refused to tell you to prepare so he could make sure his plate was full and his housing allowance did not fall into jeopardy. ANY WAY ENJOY AND PREPARE

In Christ
The Preacher

2008-03-13T09:54:00.005-05:00

Entering the Brave New World of 1984 Double Speak

WE MIGHT BE IN A RECESSION? WE MIGHT be looking at a Collapse in the Dollar?.

These and other propaganda damage control statement by the financial "guru's " as one of my customers likes to call them, just go to show how stupid or controlled these mindless drones for the system actually are. The BROKERS ( not RICHERS) have cost their client trillions of units in purchasing power over the last year or so and have plunged the economy into turmoil with their notion that the only thing that is money is that which the Government or the FED prints on paper. Rather than get their investors out of anything associated with Federal Reserve notes, and rather then Loan real money instead of Paper Tigers, they have CREATED the sub-prime loan implosion in order to expropriate the real valuables of the American people and the people of the rest of the world into the hands of the central banks.

Is it any wonder that the FED said they would be able to loan against mortgages now?

Listen to this quote from Bloomberg.com : "``Sentiment for the dollar continues to deteriorate very, very rapidly and if we're not careful this will turn into a dollar crash,'' said Mitul Kotecha, head of foreign-exchange research in London at Calyon"

Well folks the dollar crashed at the end of 1970 when all silver was removed from the rest of the coins, and as far as the rest of the word was concerned it started burning when all GOLD redemption was removed August 15, 1971. And if it were not for the connection to OIL and OPEC as a "petro Dollar" and the fact that through the Brenton Woods agreement the rest of the world held our paper as a reserve asset the funeral would already be over. 100 Dollars in 1970 is equal to aprox. 17.70 cents as of January 2008. And that is using the Governments happy happy figures. Think about that folks, that is 37 years give or take a few months and a -464.97 percent decline in purchaseing power. OK what about "inflation" from 1970 back an additional 37 years? 1970 back to 1932 the dollar lost 143.90 percent. 1931-1884 the Dollar lost 123.66%; from 1883-1846 the dollar lost 49.79 percent ( this included Lincoln's greenback hyperinflation)

From 1845-1808 the dollar lost 23.21%.

OK in 37 year increments.

23.21% Silver and Gold... War of 1812 Mexican War.

49.79%Silver and Gold...Civil War, greenbacks,

123.66% Spanish American War, WW1 Establishment of Fed Reserve System

149.90% Fractional reserve banking, IRS, Gold Stolen by FDR.

464.97% Gold Certificates denied, 1971, Silver Certificates nonredeemable. Dollar allowed to float.

Definition: Petro-Dollar: AMERICA is the largest consumer of OIL in the world and we buy that oil with FRN's. The FRN's referred to as Dollars, are sent to Saudi Arabia or some other third world sand pit, once over there, they then deposit those Dollars back into AMERICAN BANKS on accounts owned by their respective countries or companies. OUR dollar has value when OPEC agrees to accept them for oil and then redeposits them or uses them to buy stuff. If OPEC decides that they no longer wish to sell their oil for our dollars, our dollars stop having petro-Dollar Value. Other countries also use our dollars to buy oil making our FRN's valuable to them, however if OPEC or some other country that we get oil from one day refuses our FRN's in exchange for OIL, the dollar crash will be over and the funeral will commence.

Regardless of the country, if the monetary unit that it uses, has no intrinsic value or species backing ( Gold Silver etc.) once the unit will not be accepted for value in regard to OIL or some other necessity from outside of it's country's borders, that unit will die or hyper inflate as the government of that country turns the printing presses on. In my opinion it seems the reason that this fiat money system seems always to degrade through hyper-inflation to tyranny, is that since nothing is backing the unit, the Government must FORCE the use of it through ever higher taxation and Laws requiring those taxes to be paid with the defunct monetary unit. As this is happening through the hyper-inflationary time, the people are getting more poor and dependent on the Government for staples like food, housing and medical care, the Government prints more to cover it, and raises taxes higher to fund itself on the local level as well as the federal level. The printing continues, the Government controlled banks begin to take possession. Foreclosure and Confiscation become the norm. People begin to go hungry unless they are willing to accept Government handouts, and those hand outs come with a price, CONTROL. Joblessness increases as inflation increases. SAVE US will go out as the call of those who have been brainwashed into "one Man One Vote".

I Wonder......

Are those at the top are creating the chaos in order to offer the "Ultimate Solution"?

After all if all paper money turns worthless, and inflation soars out of control and food becomes to costly we can just simply seize all the assets into the arms of the super state and redistribute the wealth among the masses. To prevent fraud we can make sure the all persons are numbered and credits are assigned to each number. To prevent the theft of a credit card or the theft of a number ( Identity theft) We can simply, for every ones good and for total safety and fairness, have all the numbers placed into little chips and embedded or marked on the hands or for-heads of each and every citizen of the brave new world.

Legal Definitions:

Petrodollars :
The money that oil exporters receive from selling oil and then deposit into Western banks.
Notes:Petrodollars refers to the money that Middle Eastern countries and members of OPEC receive as revenue from Western nations and then put back into those same nations' banks. For example if Libya were to receive money from the U.S. for oil and then put the money into a U.S. bank, that deposited money is referred to as petrodollars.Petrodollars are also known as petrocurrency.
Powered by Investopedia.com. Copyright © 1999-2005 - All rights reserved.

petrodollars :
The funds that are controlled by oil-exporting countries and have been used to pay for oil imports. Petrodollars are a huge pool of funds available for investment and the purchase of goods and services. Although stated in terms of dollars, the term generally refers to all currencies.
(Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved.)

2008-03-12T22:58:00.003-05:00

WHAT TO BUY and WHAT not to BUY ---- IMHO

When thinking about hedging your dollars in Silver or Gold, it used to be, when silver was around 6 bucks an ounce or less, that one could buy Washington Quarters ( WQ) and Roosevelt Dimes(RD) and Kennedy Halves (KH) at about spot as Junk Silver. When Silver was about 6 Dollars, WQ were about 3.8-4.1 times face value. While Mercury Dimes (MD) and Franklin Halves (FH) were a bit more. Somewhere about 50 -75 cents for the MD's and about 2.50-3.00 for the FHs. While Walking Liberty halves were 4., Well as the price of Silver climbed the Numismatic value of the MD's and the FH's (outside of uncirculated and a few rare dates) were basically swallowed up in the price of silver. In other words, the melt value of both the RD's and the MD's were both at the Numismatic value of the MD's and the melt Value of the FH's and the KH's were both at the Numismatic Value of junk grade FH's. The same thing happened when the price of Silver climbed to higher levels with the WH's . When the Walkers were worth numismatically about 7 FRNs each Silver was about 12 Dollars, which was still well beyond the price of the Silver, but now that Silver is about 20 the Numismatic Value of the Walkers, (outside of EF and AU grades and a few rare years) Especially the more common 1940's, has been swallowed up in the bullion value. So what to buy? if you have an opportunity , always buy strictly for SILVER VALUE, however remember that if the Half dollar COIN was worth 7 dollars at 6 Dollars an ounce, it is still worth 7 dollars at close to 20 per ounce the only difference being that at one time it was numismatically worth 7 and now it is worth it because of it's metal content, however if the coin was worth 2 when silver was worth 6.oo per ounce and is now worth 7 for it's metal content if the price should drop so will the value of the coin, where as the former will retain it's value.

This will continue to be a "sybdrome" as or if the price rises. sooner or later the barber halves and Standing Liberty quarters will be worth only their metal value.

What to do? If you have an opportunity to buy Walkers or Franklins: Buy the Walkers. If you have the chance to buy Kennedy's or Franklins, check the weight, sometimes Kennedy's weigh more and will justify the decision, however generally speaking get the Franklins or Walkers ( unless they are worn to death) If the price should drop the numismatic value of the FH and WH, will protect you against a fall.

All that being said:
If you buy the KH's RD's or WQ's you are still getting your monies worth at today's price of silver. BUY WHAT YOU CAN, but LOOK for the OLDER coins, that are still not worn to bad, and if the opportunity arises, buy them instead or along with the others.

2008-03-12T07:43:00.004-05:00

Putting out a Fire with Straw or Gasoline?

The Controlled Demolition of the Dollar:(3 Charts)
Chart (1) 5 year
Chart (2) 2 year
Chart(3) 1 year

The Fed decided that introducing 200 billion more paper tigers into the market was the best way to help the economy. OH yes they said that they would be glad to do so, and they would be happy to accept mortgage backed debt as a pledge against the new loans. Does this mean that if the banks who are going to borrow these paper tigers are unable to repay the 200 billion that the Fed will now take possession of our homes too? This is an international issue, as the International Banker aspect of the Fed shows that it is in fact tied with the other banksters in the world. According to FOX ( Fair and balanced) Business news, the day of the move said , "Today’s plan is a joint effort between the Fed, the Bank of Canada, the Bank of England, the European Central Bank and the Swiss National Bank. The announcement moved the market sharply higher in pre-open action and the U.S. dollar strengthened against the Japanese Yen -- a key indicator of currency demand."

The Dollar would get stronger by dumping billions of units on the market? Well only if the other central banks in on the deal dumped more paper tigers into their economies then we did into ours, and that by a very large percentage, WHICH THEY DID NOT.

Bloomberg - "The dollar rose the most in three months against the yen after the
Federal Reserve said it will lend up to $200 billion of Treasuries and boost
swap lines with European central banks in a bid to ease a credit crisis....

( allowing the country to INCREASE it's debt will only prolong the problem, rather then having to be able to tame a 5 trillion pound Paper tiger we will have to kill a 10 trillion dollar one.. impossible)

Bloomberg continued:

The U.S. currency also rebounded from a record low versus the euro as traders
speculated the steps will help spur bank lending and avert a recession. Traders
trimmed bets [towards the half-point range of the possible spectrum] the Fed
will slash its benchmark rate as much as 0.75 percentage point this month, from
3 percent."

OK.. how stupid can investors be to invest in FRN's. These guys in wall street, when the fed announced their plan, actually thought that this move would make the dollar stronger? The dollar gained today... the Index went UP to over 73 blah blah blah.. the Dollar index was well over 90 only 2 year ago... and guess what folks it is down to 72.56 from yesterdays "strong gains".

OH and the Fed is still thinking strongly about cutting interest rates again by .75%.

OK Add 200 billion, Cut rates .75% while the rest of the world is raising rates= inflation unchecked. SURE THE STOCK MARKET WILL RISE. Folks talk about the Stock market rising yet it is only relative. the reality is, that against purchasing power and non dollar denominated purchasing units of almost any kind, the Stock market as tanked, and has been doing so for quite a long time.

I read an article yesterday about the falling dollar in relationship to purchasing power.

they said: if someone had purchased 100000 Euros worth of dollars in March of 2000. (8 years ago) they would have had to spend .964345 cents in order to trade for ONE euro. IN order trade for ONE euro today exactly 8 years later, one would have to trade 1.547 ( One Dollar and 54.7 cents)

OK Lets do the math. One pays 96,434.54 FRN's and gets in return 100,000 euros in the year 2000, IN 2008 he converts his euros back into FRN's and now has 63,532.40 which calculated for inflation with the federal Reserves Inflation calculator based on the very liberal Consumer Price Index (CPI) would equal to about 50,743.41 FRNs worth of purchasing power.

One individual I had read calculated that given the price of goods in Europe, the European who invested his Euros in FRN's lost some 71,000 Euros in buying power in just the last few years.

IN other words the Federal Reserve ban and all the credit card companies in America, as well as all the local banks are increasing the Paper Tiger ( and Digital Tiger) supply at a much faster rate that the Europeans and Japs are doing in their little neck of the world.

When you think of inflation, most of you are thinking that the prices are inflating, but that is the result of inflation not the cause of it. INFLATION is the INFLATING of the Paper Tiger/Digital Tiger DEBT Supply in relationship to the total number of available goods and services. The American Heritage® Dictionary of the English Language, Fourth Edition, Copyright © 2000 Published by Houghton Mifflin Company puts it this way: INFLATION is.....caused by an increase in available currency and credit beyond the proportion of available goods and services."

Your price in not going up, your value is going down.

Nothing is worth MORE.........

YOUR money ( FRN's and CREDITS are worth less ( WORTHLESS).

The only advantage that we have here in America ( and this advantage is dwindling) is that we do not have the psycho-Taxes that they have in Europe. So where as our Gasoline in America is High, their's in Europe is NUT CASE high, but hey they have free medical care and transportation.

They have learned to spread the pain not the gain and so their pain tolerance is much higher in Europe than it is here in America.

On a side note, our Constitution and Declaration of Independence speak of Life, Liberty, Property and Pursuit of Happiness, the freedom of expression and religion and self Defence, not the equality of results but the equality of opportunity. It is a shame then that those in the KNOW and at the head of State are working the destruction of these goals and aspirations for the goal of a New International Economic Order. They knew they could never destroy America and her Constitutionally protected Freedoms so they decided to drive her into a DEBT that can never be repaid for the Borrower is Servant to the lender.

P.S. HOMEWORK: if you had invested your 100,000 Euros or FRN's in Silver in march of 2000 what you would have in purchasing power today? You do the math....

in Christ

The Preacher..

2008-03-11T10:50:00.003-05:00

I was surfing around the inter-net today and came across the SILVER BEAR CAFE. They have our interview with the fantastic David Morgan of the Silver-Investor.com wed-site. This interview was given back on January 4 2006. if you have been to our web-site on www.sermonaudio.com/freedombaptist you have already heard this interview, what you might not have seen is this web-sites article that David Morgan wrote using this interview as a backdrop. As the owner of the Silver bear states:(Editor's Note:) "This is an interview with my friend David Morgan of http://www.silver-investor.com/. The interview was conducted on January 4th, 2007 by Pastor Michael Ernest Slattery of Freedom's Domain. David is one of the foremost authorities in the precious metals world and made something that can be very confusing, easy to understand. PLEASE do yourself a favor and listen. The following article was written, by David, to accompany his interview - JSB "

Please go to the SILVER BEAR site , listen to the interview but please use our link on Sermon Audio to listen to the interview so that we can see how many folks are listening.

2008-03-10T07:27:00.003-05:00

When opportunities arise , be prepared to take advantage.

This article will have foot notes in brackets OHHH AHHH (1)(2) etc..

If you woke up in the morning and found out that for some reason you local supermarket was selling everything in the store at a 5% discount or a 10% discount and you were also told that the sale would end but you were not told when, would you go down and stock up on your groceries a little bit?

If your friend came over to your house and let you know that there was a gas station in town that not to many folks new about , but the owner for some mysterious reason was selling his gasoline for much less then everyone else in town, Possibly 15 or 20 cents cheaper, would you go down and fill up your tank?

I mean you knew that the Price of gasoline had no reason to fall, and the price of food was rising every place else and the price of wheat and corn were going through the roof, and so bread should be going up but for some reason this store was selling it less than wholesale. Would you argue or take advantage of the situation?

Well this morning was one of those mornings, Gold and Silver were down, Inflation is UP. The federal Reserve is seriously contemplating LOWERING the interest rate by up to .75 bases points, (1) (effectively flooding more paper Tigers in to the market). South African Mines will be functioning possibly on only 95% power supply. (2)

IN Another African x-British colony that can't seem to function properly anymore due to poor decision making, RioZim one of the largest producers/mining companies in Zimbabwe shuts down Renco gold mine reportedly due to non-payment for its gold bu the country's Reserve Bank ( 3)

Folks in the media are talking about god down amid stronger dollar yet the DOLLAR is down against the Euro needing 153.3 dollars to buy ONE Euro as of that statement and when the fed lowers interests rates again this month it will most likely head even lower. As for the British Pound Sterling, a week ago it took 1.98 to buy one British pound and this morning it would take 2.018 ( Almost 2.02) So lets not pretend that the Dollar is doing anything but loosing purchasing power. Or that a stronger dollar is the cause for falling Silver and Gold prices. What we have here are a few possibilities : 1 Fund managers with computer generated buy and sell options that kick in. 2. Manipulation through some government threat to sell hoards of metal. 3Manipulation of the rules on the COMEX for margins. This last one has been very effective in the past but only a temporary issue in the present. In relationship to the Hunt brothers in the late 1970's early 80's

When the Hunt's had begun accumulating silver back in 1973 the price was in
the $1.95 / ounce range. Early in '79, the price was about $5. Late '79 / early
'80 the price was in the $50's, peaking at $54.
Once the silver market was
cornered, outsiders joined the chase but a combination of changed trading rules
on the New York Metals Market (COMEX) and the intervention of the Federal
Reserve put an end to the game" (4)

The officials at COMEX moved to check this cornering of the silver market by raisng margin requirements. The highly leveraged Hunt Borthers were unable to meet their margin calls, and were forced to sell. (5)

Inflation was running wild and the Hunt brothers, 2 of the richest men in America ( OIL MEN IN TEXAS) made the mistake, in my humble opinion, of understanding the issue of Fiat money, but underestimating the international bankers in the Federal Reserve and those in charge of the COMEX. They also ran afoul of another family that was big in OIL... the BUSH family. Hey competion can be pretty dangerous at the top.

Well folks the federal reserves has no more Silver Reserves to dump on the market, but the COMEX still can change the rules as they see fit. However I do not think that CHINA cares what the COMEX does.

Well folks it may get even cheaper, but for how long who knows, the indicators are all looking to force the price up as compared with falling dollars and the onslaught of looming inflation.
Look for better quality coins that have some numismatic value even if that value currently absorbed by the silver price, Call me if you want 352-362-2212 and I would be glad to explain that concept in detail,
I am not a "financial adviser" but I do own a Bible.
I am not telling you what to buy or what not to buy, but I am sharing with you what I think and why. You should all adjust yourselves according to your own research and findings, that is why I have put so many references on this web-site and so much research material.
God Bless
IN Christ
The Preacher/

(1)U.S. Stock Futures Gain After Goldman Says Fed May Reduce Rates
By Eric Martin
March 10 (Bloomberg) -- U.S. stock-index futures advanced after Goldman Sachs Group Inc. said the Federal Reserve may reduce interest rates today following the fastest loss of American jobs in five years. ....

(2)...Eskom, would be upping power supplies to major mines from 90 percent of requirement to 95 percent.

(3) OPERATIONS SUSPENDED
RioZim shuts down Renco gold mine
One of Zimbabwe's largest gold mines has been shut down reportedly due to non-payment for its gold bu the country's Reserve BankAuthor: Tawanda KaromboPosted: Sunday , 09 Mar 2008
HARARE -
RioZim, one of Zimbabwe's major mining companies has reportedly shut down operations at its Renco gold mine, one of the country's largest producers

(4)..but a combination of changed trading rules on the New York Metals Market (COMEX) and the intervention of the Federal Reserve put an end to the game"

(5) COMEX Changes rules

2008-03-03T07:19:00.002-05:00

OK now that Silver has eclipsed the 20 FRN mark. Beware of the possibility of the psychological investor. Those are the folks who do not buy or sell based upon facts but rather through fantasy.
Fund managers and Brokers tend to fall into this catagory. They are SURE that gold and Silver will do something but they are not sure what. And generally about 6 months agao they were sure ut would do nothing. They are after commissions not profits. And now that Gold and Silver are higher, their % is going to make it worth their while to get you to add it to your paper portfolio. They will never advise you to take posession for then they would be out of the loop. You would no longer need them and you might close your brokerage account. The ETF's ( Electronily Traded Funds) are a good example of this. And where as they seem like a good idea if you can eliminate the brokerage house and use them as money in and of themselves, they are in fact,(IMHO) Just another way to possibly create something out of nothing at worst, or a way to keep all your investments tied to your BEAST number at best. That being said, the ETF's have over 650 metric Tons of Gold secured in them, (over 20 million 800 thousand ounces) this is a supply drag, and helps to push Gold higher. South Africa still can't figure out how to run an electric company and so they will be running on at most 90% power for the next half decade, China is consuming way more then they are producing, and the Dollar, thanks in part reciently to Greenspan being honest with the Saudi's is falling like the trade towers. Inflation is at about 7% possibly much higher on the CPI field, and on the commodity range it is about 20% with Wheat, Corn, Suger,Soybeans,Copper,Lead,.Silver,Gold,Lumber,Zink,Rhodium,Platinum, all well into to multi-year Double digits.
Outside of a deliberate manipulation of FRAUD. in My Opinion there is no reason in the world for Gold and Silver to go any place but UP. But then again those in charge have been known to change the rules.

Click here for a radio broadcast that I did with some of these figures...HERE

2008-02-08T22:31:00.000-05:00

"Paper Tiger and Bullion Bulls"

A lot of folks that are watching and waiting on the Bullion Bull to slow down are focused on the Dollar in relationship to the Euro or some other basket of "paper". Where as the Euro is looked at as a money either strong or weak against the dollar, it is in fact just another paper tiger prowling about the financial jungle seeking whom it may devour. This is just the way it is. The Dollar and the Euro and every other debt based paper tiger maintain their power, not through full faith and credit, but rather through fascist governmental cooperation with international banking houses through the enforcement of legal tender laws and anti competition (protection) laws posing as anti-counterfeiting laws. The big thing that I noticed the other day when Bloomberg and a few others started reporting their mantra -that the Federal reserve Note was going to go from 148 Euros per dollar to a strong 135 by the years end, was that the issue of inflation and values against anything tangible was not included. I told a friend at church, when he asked me about this, ( he thought the dollar was getting stronger) that the international banking folks that have been playing with the so called Dollar, would not focus their attention on the Euro and a few other "paper tigers". They need to do this so that in the long run, the people will clamor for a one world "Unit". They can not have confidence in any particular "paper tiger" to the extreme exclusion of any other. This would upset the ultimate goal of establishing an "International Unit" or "Universe-aro". The paper tiger is a false tiger to drive folks to the invisible tiger. The big governments already think this was through the international bank of settlements. The Dollar is not a dollar based upon gold and silver coin as per the Constitution any more than the British Pound Sterling has anything to do with Sterling Silver. They will be attacking the British Pound and the European Union's Euro. HOW? The same way they do it every place: print lots and lots of them . Force the people under severe penalties to use them to pay taxes with them. Force them to accept them and then DEVALUE THEM. Cause the people to BEG for a solution to their inflationary fears. Destroy the value of their homes and at the same time destroy the value of their paper assets. Then while the people begin to worry, continue to deport all their jobs to third world slave shops and in so doing destroy their ability to stay off the public dole. This creates food stamp persons and WIC moms. While their homes are losing value, increase the property taxes, flood the economy with more of the paper tigers and cause the price of their day to day items , like food and transportation, to increase dramatically. This will force even more people onto the public doles of food stamps. After all , milk at $4.50 per gallon will look pretty good when all the sudden it is 5 or 6 or 7 instead and only FOOD STAMP persons and WIC people can afford to buy it ( for my family it's almost there now.) Flood the market with welfare money, FRN's and WIC and Food Stamps. Let folks buy their food with credit cards but under no circumstances get rid of the legal tender laws and restore the Constitution's provisions for just weights and measures and a sound monetary policy. Force the people to BEG. Make them groan. Pretend there are no real problems. Look the other way. The American paper tiger and the European paper tiger will soon be in a battle for their lives with the Chinese and Islamic world's real tigers and they can not hope to win. What will they do? Well folks they will do what they always do.. they will print more paper tigers and send them to the killing fields. Why will they do this. To get you so desperate that you will BEG and CRY for deliverance. You will beg to be cared for and fed and housed and clothed. You will do anything, even turn in your friends and family if they get in your way to your nice, safe, secure new homes. No more cash, no More Credit or debt or anything like that. Each according to his ability to each according to his need. Licking the hands of your masters in a brave new world order. What the POPE called a NEW INTERNATIONAL ORDER, a NEW ECONOMIC ORDER. Are you ready for your Chip sir? Are you ready to be marked and herded like pigs and sheep? Gold and Silver see this event on the way and they are adjusting themselves accordingly. The powers that are attempting this brave new world know that in the average man's mind, for over 6000 years ,Gold and Silver have been recognized as one of the only long term protections against the whole sale printing of paper,plastic and welfare tiger's voracious appetite for life savings. Here is an example: the dollar gained, against the Euro, yet still LOST against everything real in the world. Almost all metals, corn, beef.
People want to own things, real assets as opposed to paper and stocks,'' said
Adam Hewison, trader and president of Annapolis, Maryland-based Ino.com
Inc.,
which provides technical analysis of markets. ``Food and fuel costs
are going to
fire up the inflationary cycle, and that's why people are going
into precious
metals.''

``Commodity prices are soaring,'' said James Turk, founder of GoldMoney.com,
which had $305 million in gold and silver in storage for investors at the end of
January. ``There is plenty of inflation in the pipeline, making gold the asset
of choice.''

As long as both Europe and America can send out their paper tigers to distant slave hell holes for distribution or accumulation without fear that they will return right away, what will be looked at as inflation will be minimal in regard to most consumer electronics and other items not needed to survive, but for bread and milk and metals that are being bought up with these ever-spreading paper tigers, it will take more and more. The Bullion Bull will continue to tear apart the paper tigers as a means of wealth preservation, at least until the powers that be consolidate power into the hands of the FEW and declare gold and silver and property ownership , including but not limited to the saving and hording of food, ammunition and water, as Non-NWO friendly. What should you do? The Paper Tigers will die before the Bullion Bulls and the Bullion Bulls will Die before the Ammo. Adjust your portfolio accordingly.

2008-01-17T23:42:00.000-05:00

I was doing a little math today and was interested to see the comparison between various so called "investments". I was and am very familiar with the Gold and Silver ratios, ( the price of silver divided into the price of Gold to see how many ounces of silver are equal to an ounce of gold) Today it is about 55.5-+ to one.

Another Ratio is the price of Oil to either an ounce of Gold or an ounce of silver. There are ratios for almost everything you can think of. As a rather non-wealthy investor and not having any liking to stocks and bonds and other "beast system" paper trail imaginary investments, I have never bought a stock, I have however always, since I can remember followed the market. As an adult and as a Christian I am more convinced biblically and through conviction that I could never waste my money in the gamble that is called the stock market today. That being said, and having a confidence in those real things that have been created by my saviour the Lord Jesus and having no confidence in ANYTHING that has had it's origin in the mind and imagination of a fallen race, I present for you here the comparison between the world of the DOW and the Gold and Silver of God.

According to investopedea:
"3. If a stock is up two points, then it really means that the stock is up $2. Don't confuse points with percentages when talking about stocks. If a $5 stock rises by $2, it has risen two points. Similarly, if a $50 stock rises by $2, it has also risen two points, although the two-point increase is a much greater percentage change for the $5 stock than for the $50 stock." The points in relationship the DOW are similar but are not ONE TO ONE, but for the sake of understanding this thy might as well be.

One more point to ponder.

Unlike Gold and Silver and most other commodities, THE DOW, being a construct of man and a means of expropriation, can be and is often changed to give the illusion of constant growth. For example, if you had invested in the DOW companies in 1896 when this index was started, you would be looking at 12 companies, which according to WIKIPEDIA only general Electric remains, and a few of which simply do not exist.
When the did their figuring, they basically averaged them out.

As time went on companies died, others merged and some were simply dropped in favour of companies and industries that were performing well. This along with some creative figuring gives the illusion that the stock market, as one broker told me, Always goes up over time, when in fact, against real goods in many cases, it is just the opposite. (yes there are exceptions). The system is built to keep you "trading" or loose everything. The tax system is set up to skim as much as possible, and the fees and other expenses are not figured in when dealing with most of their charts and claims.

Here is a list of the ORIGINAL companies in the DOW... and WHAT happened to them:

American Cotton Oil Company, distant ancestor of Bestfoods, now part of Unilever

American Sugar Company, now Amstar Holdings

American Tobacco Company, broken up in 1911 antitrust action

Chicago Gas Company, bought by Peoples Gas Light in 1897 (now an operating subsidiary of Integrys Energy Group, Inc.)

Distilling & Cattle Feeding Company, now Millennium Chemicals, a division of
Lyondell Chemical Company

Laclede Gas Light Company, still in operation as The Laclede Group, removed from the Dow Jones Industrial Average in 1899

National Lead Company, now NL Industries, removed from the Dow Jones Industrial Average in 1916
North American Company, (Edison) electric company broken up in the 1940s

Tennessee Coal, Iron and Railroad Company in Birmingham, Alabama, bought by U.S. Steel in 1907

U.S. Leather Company, dissolved 1952

United States Rubber Company, changed its name to Uniroyal in 1961, merged private with B.F. Goodrich in 1986, bought by Michelin in 1990

NOT only are ALL of these companies NOT on the DOW ( except for GE) some no longer exist. ( Remember you MUST KEEP TRADING and then convert to cash to have anything)There are 30 Companies on the DOW list now but the switching to maintain increase continues, for example:
According to WIKIPEDIA:

The individual components of the DJIA are occasionally changed as market conditions warrant. They are selected by the editors of The Wall Street Journal. When companies are replaced, the scale factor used to calculate the index is also adjusted so that the value of the average is not directly affected by the change.

On November 1, 1999, Chevron, Goodyear Tire and Rubber Company, Sears Roebuck, and Union Carbide were removed from the DJIA and replaced by Intel, Microsoft, Home Depot, and SBC Communications. Intel and Microsoft became the first two companies traded on the NASDAQ exchange to be listed in the DJIA. On April 8, 2004, another change occurred as International Paper, AT&T, and Eastman Kodak were replaced with Pfizer, Verizon, and AIG. On December 1, 2005 AT&T's original T symbol returned to the DJIA as a result of the SBC Communications and AT&T merger.

Going back 10 years as a bench mark the DOW closed on January 30 1998 at 7,906.5
Gold on the same day closed at 304.85, In other words regardless of the companies in the DOW, the price of an ounce of GOLD was 25.93 ounces of GOLD to AVERAGED Value of the DOW.

Today the DOW closed at 12,159 with GOLD being $888.25 per ounce. The ratio is not only 13.68 to one but the purchasing power of GOLD as compared to STOCKS in the DOW has increased almost 2 fold.

Silver went from 1309 ounces of Silver needed to equal the DOW average for the same day, to only 765 ounces needed today to equal the Dow's close today.

Now granted there were no dividends payed on Silver or Gold if purchased and held onto, but then again there were no taxes paid or commissions or brokerage account fees paid either. In other words, all things being equal ( if that is possible in the land of Wall Street, the average man would have been much better off today, on almost all accounts had he converted his paper money into Gold and Silver since the fall of the The Gold and Silver Standard in 1964. And especially in the last ten years.

2008-01-17T08:21:00.000-05:00

Here we have the professionals "forcasts" for the year 2008, notice the "bank" oriented forcasts are lower... theu need to make sure that real money does not outshine their imaginary money. Anyway Enjoy the information and adjust yourself accordingly...Just click on the images for a larger clear readable image....