Billionaires did away with the "gold standard" with the establishment of legal tender. On Jekyll Island, a group of billionaires united their efforts in the formation of the Federal Reserve and the U.S. monetary system, known as legal tender. In-scripted Money: it's easy to print and easy to circulate.
U.S. currency was no longer backed by the gold standard and became known as fiat money. The printing of money was liberalized and freed banks to make loans far exceeding the nation's total money supply. During times of monetary correction, stock prices drop and gold prices go up, as imaginary people promote the possible collapse of the monetary system.
Some stake their claim on gold, with new purchases driving up the price; but where's the gold? What brings on the monetary correction? Or, is it an economical correction?
Well, in addition to other factors, the stretching of debt beyond responsible limits and the default on loans leading to foreclosures and even bankruptcies contribute to business and corporate downsizing, unemployment, and other factors that bring on what some reference as monetary correction.
Is it monetary correction or is it economical recession?
If it were a monetary correction, would our money have more value or less value? For the most part, we seem to have more bargains available during the correction (i.e., housing values go down, and we have new tax incentives to encourage new home purchases).
How much gold and silver does the U.S. government own?
In 1993, by some estimates, the government owned $26,112,563,338 in gold and silver. What was the national debt? $5.4 trillion. What is the national debt today? Today the national debt is $12 trillion+ and the unfounded liabilities total $106.9 trillion+. You can check these numbers on line at www.usdebtclock.org
Admittedly, it's difficult to come to grips with those numbers. If our monetary system was fully backed by gold and silver, the required amount would be the grand total of the national debt, plus the unfounded liabilities, plus the peoples bank deposits and cash holdings also known as M1 money (currency and demand deposits}.
Here are some questions to ponder:
- Has the cost of living continuously increased, or has the standard of living increased? If I lived the lifestyle of the 1950s what would it cost me today?
- Would our standard of living be better if our monetary system was backed by gold and silver?
- Where is the gold? The claim is that the major sources of gold are in Africa and Mexico. Can we mine gold, store and guard gold cheaper than we can print currency as needed?
- Should I buy gold just in case the monetary system collapses?
You may want to consider the long-established Financial Rule of 100. The Financial Rule of 100 tells us to subtract our age from 100 and the difference is the maximum exposure we should allow to be at risk. So, apply the Financial Rule off 100 and invest no more than the difference between your age and 100 in gold. It is a risky investment and has been known to lose 50 percent of its value in a short span of time.
What is your best source of financial stability that can assure a stream(s) of income for life?
According to financial universities and economists around the globe, "... income annuities can assure an income stream for life at a cost as much as 40 percent less than a traditional stock, bond, and cash mix."
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