RE: [OpenFX] Re: 6 Charts Worth Looking At

Dear Alan,

I want to say thank you so much for sitting down and writing all this I am really learning ALOT aswell as probably alot of people in the blog. I was wondering how do we get back to what was intended for the USA, a undilutable solvent currency that could not be corrupted? I am sure this will probably be in that one post you said you would be writing but I thought I should ask anyway. On your note about having two to types of "currencies" in 1914-1964 does that mean that the treasury printed their own type of dollars at that time?( that may seem obvious but tonight I have a tired brain) If you have time could you elaborate on what you said "eventually, the power of the Federal Reserve would wane or cease to exist and the US government would be forced to operate within its actual tax revenue streams" I understand the part of the government having to operate within it's actual tax revenue streams. I do not understand how the Fed's power would wane, would it be because we wouldn't be borrowing from them anymore thus are money wouldn't be debt based?

Thank you again for taking the time to explain all that you have,

To: OpenFX@yahoogroups.com
From: alan7100@sbcglobal.net
Date: Fri, 25 Feb 2011 14:45:40 -0800
Subject: RE: [OpenFX] Re: 6 Charts Worth Looking At

Mary,

Actually, we could re-establish a gold standard in the US. This would probably go through two phases. First, the establishment of a Treasury silver certificate, similar to what we had up until 1964, followed by a Treasury gold certificate. We would in fact have two types of "currencies" in circulation (not at your local food store but in peoples hands) similar to what we had between 1914 and 1964, Treasury notes and Federal Reserve notes. In 1964, a $1 dollar Treasury note at the bank was worth about $2.50 in Federal Reserve notes at the time.

This being said everyone can think of 64,000 problems resulting from the float in exchange rates. Guess what. The United States and the world could handle this.

Eventually, the power of the Federal Reserve would wane or cease to exist and the US government would be forced to operate within its actual tax revenue streams. (long story here).

Up until 1924, private currencies were in ciculation in Great Britain. I have no idea how this was handled in terms of exchange rates with the Pound which was backed, at the time, by about $4.80 (1920's dollars and gold at about $21 per ounce) in gold, but a number of areas in Britain saw these private currencies in day to day commerce.. The reverse of this situation is obviously also possible ie. everybody deals in gold backed pounds. Further, any British citizen could take about four of his paper pounds and shilling, or there abouts, and turn it into his bank and get a gold guinea (sp?) bullion coin with about an ounce of gold in it. (Before anyone goes bonkers here, there was a problem at the time created by the BOE ---- they would not let the pound exchange rate "float" and the French did a number on the English gold reserves).

In the United States of America, between 1933 and 1971, only foreign citizens could take US Treasury notes and turn them in to a bank and get a US gold double eagle. US citizens could buy them as collector's items, with some degree of government harassment, in private numismatic markets at a huge premium, but neither the US government nor the Treasury would acknowledge an American citizen having the right to redeem a Treasury note for gold. There's some weird idea that we went off the gold standard in 1971. We went off the gold standard in 1933. In 1971, it became "legal" again for US citizens to buy and hold US gold double eagles that did not have collector's value.

The discontinuation of Treasury certificates laid the foundation for our present fiat currency system (You could of course argue that passage of the Federal Reserve Act laid the foundation for fiat currency ---- I'm speaking in physical terms here not philosophical).

The United States, above all countries in the history of the world, was constructed never ever to do this. But we did. The United states, under the Constitution and its original banking system, was designed to provide the average citizen with an undilutable solvent currency that could not be corrupted. Dissolution, of the Second Bank of the United States overturned this completely.

You mention elitists and manipulation of currency (or gold?). That unfortunately characterizes almost the whole history of mankind. If a population is stupid, improperly educated about the past, if their government leaders and representatives can be bought and they don't react to this, if the concept of wealth redistribution becomes accepted -----invariably the monetary system will be corrupted.

This has nothing to do with a gold standard and everything to with corruption of political systems and banking systems.

Your clip has a lot of the truths and a few of the fallacies that confuse the issue.

AHF

--- On Wed, 2/23/11, Mary Ruhl <mg_rulz@live.com> wrote:

From: Mary Ruhl <mg_rulz@live.com>
Subject: RE: [OpenFX] Re: 6 Charts Worth Looking At
To: openfx@yahoogroups.com
Date: Wednesday, February 23, 2011, 10:41 AM

What if the currencies didn't return to gold? Theres not enough gold in the world to base the US money on gold. So why would we go back to something that only helped the elite and was very easy to manipulate? Have you watched "the secret of oz"? Here is the link: http://www.ustream.tv/recorded/10297201

To: OpenFX@yahoogroups.com
From: jf337321@bigpond.net.au
Date: Wed, 23 Feb 2011 17:41:09 +1100
Subject: [OpenFX] Re: 6 Charts Worth Looking At

What would happen if the IMF reversed that decision and let the currencies be gold backed?

btw Great article