Paper Money Slaves

Since the US government dumped the gold standard in 1933 and the silver standard in 1964, it has consistently colluded with big banking interests to contain the prices of these two precious metals. Why?

Well, one easy answer is that high silver and gold prices in dollars makes the US dollar look anemic and highlights economic weakness. Higher interest rates usually follow as well, and when you owe the trillions the US owes that's just plain bad news.

However, I think the real reason the US has promoted fiat paper money over the better part of a century is due to a more sinister reason. The banking cartels and the super wealthy who are the puppet-masters behind our alleged democracy like the fiat money system for the power, wealth, and control it affords them. Gold and silver gives any citizenry economic and therefore ultimate political independence as these metals have been used in commerce for over 5000 years all around the world. They can't be easily created on demand merely by the command of the Powers-That-Be as paper money can and does. When a man owns gold and silver coins he isn't dependent on any government or economic regime for his life and well-being. If he doesn't like the men governing him he can throw them out or move elsewhere, knowing his fortune will be intact. Unfortunately, paper money is printed and "backed" only by the issuing governmental body. History is littered with examples of worthless paper money and impoverished inhabitants following a political collapse or revolution.

Today, 99% of all US citizens have the majority of their assets in paper dollar denominated funds. In addition, they have come to depend upon the promise of governmental programs like Social Security and Medicare for their old age retirement. New health legislation has introduced the specter of a future in which no government health card would mean no healthcare. Of course, welfare and food stamp programs continue to grow without pause.

I believe that our fiat money system, together with the bewilderingly wide variety of government sponsored entitlement programs, have carefully created an entire slave caste in our country that's growing steadily. These slaves are now so hooked into the "Matrix" that even the mere thought of rebellion is terrifying to them. Any future US government will be able to treat it's "dependents" in any way it sees fit with no fear of retaliation. After all, why would any sane person rebel if it meant starvation, utter impoverishment, sickness, and death for himself and his loved ones?

So how can a freedom-minded patriot help to insure his liberty now and in the foreseeable future? Buy gold and silver. These precious metals have always existed outside the total control of any political regime, including the US government, and will insure the USA will always own one less slave!

Time is running out fast! Hyperinflation seems unavoidable as fiat paper money is being printed as fast as the US presses can run. To protect your wealth and your family, buy gold and silver now from these top companies, APMEX Gold and Silver and Silver American Eagles.

Rick

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Weimar Hyperinflation vs. US Dollar

German Children Playing with Worthless Paper Reichsmarks

During the Weimar Germany hyperinflationary period (1922-1923) the Reichsmark lost value rapidly against the US Dollar. Review the information below for conversion rates as the hyperinflation progressed:

Timeline of Weimar Republic Hyper-Inflation (Reichsmarks per USD)

June 24, 1922: 272 Reichsmark (RM) to $1.00 US
July 1922: 670 RM
August 1922: 2,000 RM
October 1922: 45,000 RM
November 1922: 10,000 RM
December 30, 1922: 500,000 RM
February 1923: Reichsbank buys back RM (or reichsmark); stabilizes RM at 20,000 to 1 US dollar
May 4, 1923: RM 40,000
June 1, 1923: RM 70,000
June 30, 1923: RM 150,000
August 1-August 7, 1923: RM 3,500,000
August 15, 1923: RM 4,000,000
September 1, 1923: RM 10,000,000

Around September 10 to September 25, 1923: Prices reportedly rise hourly in several German cities.

September 30, 1923: RM 60,000,000 = 1 US Dollar

November 15, 1923: Rentenmark issued; pegged to the Gold Standard; Rentenmark 4.2 = 1 US dollar; at this time: Old Reichsmark 4,200,000,000 = 1 US dollar.
1 New Rentenmark = 1 Billion Old Reichsmark!

Only the issuance of the Retenmark, backed by bonds indexed to market prices (in paper Marks) of gold, brought the out of control hyperinflation to heel.

Time is running out fast! Hyperinflation seems unavoidable as fiat paper money is being printed as fast as the US presses can run. To protect your wealth and your family, buy gold and silver now from these top companies, APMEX Gold and Silver and Silver American Eagles.


Rick

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The Death of Money

Like everything in the natural world, money has a cycle of birth and death. The US Dollar and other similar paper currencies came into being from the same historic forces that will eventually lead to their total devaluation and subsequent immolation.

The earliest forms of money were gold and silver coins. History can trace these two precious metals back in a continuous line for over 5000 years! In the latter part of the 13th century, Marco Polo witnessed the amazing sight of paper money being used in China in place of gold and silver. Hundreds of years before China had taken the first step away from "real money" for what seemed at the time a perfectly good reason. The darn stuff was too heavy.

Step One: Letter of Credit

In 806 AD, the Empire of China introduced letters of credit which allowed merchants to place their gold and silver on deposit with private concerns. These proto-banks would then issue a letter of credit for a fee. The merchant could then safely traverse the length of the land safely and unburdened until he reached his destination, at which time the letter of credit would be turned back into hard specie. Hundreds of years later the Knights Templar would grow rich with a similar scheme for pilgrims traveling to the Holy Land. Eventually, as the issuing firms grew ever more wealthy and powerful, they began evolving into the banks we know and loathe today. During this growth period, though, a peculiar thing was occurring. People were beginning to trade the letters of credit for goods and services among one another without bothering to convert them back to gold and silver coins. From this observation was born, no doubt illegitimately, the next step in the evolution of money.

(Centuries later the USA would issue Gold & Silver Certificates that were backed by a 1 to 1 reserve of the precious metals involved. Anyone holding the metal backed notes could exchange them at a Federal Bank for their equivalent in gold or silver. The Gold Certificates died in 1933 when our first Socialist president, FDR, killed them. The Silver notes died in the 1960's at the hands of another three initialed Democrat, LBJ.)

Step Two - The Fractional Reserve

The fees from the issuance of the credit letters were good, but they were limited by the amount of gold or silver on deposit backing them. To take better advantage of the new trading status of their issued credit letters as well as the perfectly good silver and gold lying dormant in their vaults, the clever bankers began issuing additional credit letters that were only partially backed by precious metals. They figured that there was always unclaimed letters circulating about, so there was really no need to have 100% of the metals available in the vault at any one time. In addition, the extra fees would support their further growth and power and the expansion of trade. Thus was born paper money backed only fractionally by precious metals.

Instruments today like the ETF's GLD and SLV are widely thought to be backed by only a fraction of the gold and silver for which the paper shares are issued. It's impossible, however, to know for sure since the custodians of these funds prohibit any independent audits!

Of course these fractional schemes didn't always work. Sometimes a rumor of insufficient gold or silver reserves would lead to a "run on the bank" and the ruination of the financial corporation caught holding the bag. However, enough success was achieved with this underhanded scheme to build banking empires like that of the Rothschild Family and to lead us to next final stage of this tragic comedy. The un-backed fiat currency.

Stage Three - Unbacked Fiat Money

Now we arrive at the third stage of the devolution of money. At this point both big government and the large banks are working hand-in-hand. Now even the half-lie of the fractional reserve is discarded. Wealth is created and dispensed by "fiat" or order of the central government in collusion with the banks. The government benefits from an ever expanding money supply by funding free-for-nothing social programs without the messy necessity of having to pay-as-they-go. The banks benefit by loaning ever growing sums of cash to the government, industry, and the consumer, funding unrestricted economic expansion.

The story of fiat paper money isn't all sunny, however. The evils of inflation, recession, and depression batter the common man on a regular basis. The average American now lives and dies in a perpetual slavery of debt and never-ending interest payments. Eventually, ever increasing spending and a ballooning money supply results in hyperinflation (by definition an inflation rate of at least 50% PER MONTH)! Revolutionary and Civil War America, Weimar Germany, Hungary, Argentina, Chile, Russia, Iceland, and Zimbabwe are a few historical examples of this dread economic blight.

Final Stage - Return to Gold & Silver or other real commodity

Weimar Germany emerged from their hyperinflationary period by the creation of the Retenmark, which was backed by bonds indexed to market prices (in paper Marks) of gold. It's impossible to know precisely what the US and the Western democracies will use to back their future currencies once they finally reach this stage. However, it is very probable that the "real money" of the past i.e., gold and silver, will play some part in the future drama. What we can say for sure, though, is that all fiat money schemes are destined to die and hopefully be reborn phoenix-like with a return to a "real money" economic grounding.

Time is running out fast! Hyperinflation seems unavoidable as fiat paper money is being printed as fast as the US presses can run. To protect your wealth and your family, buy gold and silver now from these top companies, APMEX Gold and Silver and Silver American Eagles.

Rick Pyle

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