There is no currency in the entire world, which is backed by anything, other than the “Full faith and credit of the (you fill in the blank) government.” Even the IMF yesterday, warned that a global monetary collapse could happen if governments don’t stop their reckless spending. Look at Greece, which has been socialistically spending like drunken sailors for decades. It has come home to roost, and Greece, like America, Portugal, Japan, Britain, Spain, etc, are all literally bankrupt. Greece seems to be a sort of exaggerated example, but our current $12 trillion debt, plus another $150 trillion promised, makes us bankrupt. All the world lives on paper money, with no standard for money of any kind. None. They simply print to pay their bills, or borrow. America, right this minute, is buying its own debt with paper scrip, because they’re having a hard time finding anyone else to buy it or loan to us. This is an absolute fact.
Why do people believe in the dollar? Why do they believe in a piece of paper which can be produced for two cents in any denomination, and is backed by thin air? I am at a loss.
For thousands of years, gold and silver have been real money, and continue to be so. Picture an economy with a gold standard for money. Coinage would be silver and gold, and whatever paper money there would be, would have to be backed 100% with gold, and readily exchangeable for it if desired. There would be no inflation, no deficits, no corrupt banks, no silly wars, and basically none of the current problems we have. Would the stock market fluctuate wildly, if we were on a gold standard? Not hardly, because on a gold standard, banks could not borrow from the fed, as there would be no fed, and thereby few would buy stock on margin.
If we were on a gold and silver standard, government would be extremely careful about what it spent, because money couldn’t be printed to pay for earmarks, deficits, and absurd spending. Government could only spend what it took in, because the amount of currency in circulation would be totally dependent on the amount of gold government had to back it, and you can bet inventories would be taken quite often. If we were on a gold standard, Colorado Gold would be out of business, because everyone would have gold or gold backed dollars, there would be no inflation, and there would be no need for hedges against it. We’ll gladly quit!
Having a rigid standard for currency or money, makes everything so utterly simple and honest, that it is difficult to even describe it. Would there be Fanny and Freddy, derivatives, credit swaps, overpriced real estate, crooked banks, the Federal Reserve, or being a laughing stock of the world? No. The old expression KISS, or “Keep it simple stupid,” makes so much sense. So simple would it be for everyone to have silver coins, gold coins, and 100% backed dollars. Congress might have to be in session maybe a month a year. No more fractional reserve banking, because there could be no fractional reserves in a bank, if all money were backed by, or were actual gold. Welfare would be non-existent, because in order to pay out of the treasury, there would have to be gold to back every single dollar paid or check written.
Since there are standards for everything in the world but money, and since even the IMF says that the entire economic system of the world is in jeopardy, doesn’t it make the utmost sense to save surplus assets in gold and silver, and get out of unbacked paper scrip? There is no one who can control politicians, other than to vote them out, which I hope we can do in November. That doesn’t fix the rest of the world though, and maybe not even the U.S., since our debts are totally unpayable, other than with printing press scrip, known as dollars. We can reform government I am sure, if November goes as we hope, but that will not remove the unpayable debts, nor restore a gold and silver standard of our money.
The Tea Party Movement is outraged about government spending and taxation, and has nothing to do with racial bias, as the media likes to exclaim. For some strange reason, the media is so liberal, that they are doing everything in their power to destroy the Tea Party Movement, which is genuine outrage, just as the outraged Colonists protested 234 years ago. They had to fight Mother England. Our fight is not violent, but is against ’Mother D.C.’ I call it the “D.C. Gang,” which I do believe is appropriate. If our non-violent protestations do no good, I have no idea what may result. The Colonists tried to be peaceful, and the King paid no attention. The Tea Party Movement is trying to talk sense into D.C. and the citizenry of America. We need to save this nation, and joining the Tea Partiers is one way to do it. Join them, and save surplus assets in real money!