|
 As
the editor of the Silver
Bear Cafe, I try to focus on the ramifications of world
events. I try to understand how what's going on now will affect your
pocketbook next week, next month, next year. It is my sole intent to
help you consider the possibilities which will, in turn, help you
prepare for your financial future.
One
of the most important aspects of your financial survival concerns your
understanding of the nature of money. If you believe that precious
metals do not constitute "money", you may have been misled. If
you have been misled, who misled you? Why? And "What's wrong with
this picture"?
What
is money? The whole point of money is suppose to be the provision of a
convenient and liquid medium that can be exchanged for less liquid
value. It is a go between. One strives to accumulate money so it can be
exchanged it for something else.
In
our illustrious history, we humans have tried everything from salt to
sardines as a medium of exchange, but nothing has seemed to work as well
as gold and silver. A person bringing a relatively illiquid item to
market could swap it for gold or silver, secure in the knowledge that
the metal would retain its value for as long as he chose to hold it and
would be accepted as payment for anything he wanted when he chose to
spend it.
The
condition that your gold and silver will retain its value for as long as
you chose to hold it is the most valuable characteristic of the
"barbarous relics", and provides the fodder for me to champion
the cause of precious metals ownership, and for my ensuing attack on the
debasement of the American dollar.
Man
has an innate desire to obtain and own gold and silver. That we seek to
possess precious metals seems as naturally entrenched in our collective
psychic as any other instinct. The possession of wealth, in the form of
gold and silver, has always represented power and control. There is
nothing wrong or unnatural to desire power and control. The power to
control one's destiny through the accumulation of wealth is not only
natural, it is healthy. This natural desire is the basis of our
capitalistic system. The gold standard, as prescribed by our
Constitution, is "the Law" that insures that the "power
and control" that is provided by wealth, cannot be abused. Those
who would seek to abuse the power of wealth would consequently have to
break "the Law." "The Law" has been broken.
In
1792 the U.
S. Coinage Act was passed by Congress. It
invoked the death penalty for anyone debasing money
and provided for a U.S. Mint where silver dollars were coined along with
gold coins beginning in 1794. The text of Coinage Act of 1792 states:
“The Dollar or Unit shall be of the value of a Spanish milled dollar
as the same is now current,” that is, running in the market, “to
wit, three hundred and seventy-one and one-quarter grains of silver.”
To
repeat, A “dollar” is a
silver coin containing three hundred and seventy-one and one-quarter
grains of silver — and it cannot be changed by constitutional
amendment, definitionally, any more than the term “year” can.
Even
at the current suppressed value of silver, ($6.93/troy ounce), a
"dollar is worth $5.36. The fact that a currently circulated
Federal Reserve Note of a "One Dollar" denomination is not
worth $5.36 is evidence that a radical debasing of money has occurred
sometime in the past and begs the questions: Who was responsible for the
debasement, why did "we the people" allow the debasement to
occur, and why weren't those responsible prosecuted?
Fiat
money, (money not backed by anything), was something so abhorrent to our
Founding Fathers that they didn't even discuss it as an option. The
Constitutional gold standard provided that the Country's citizens could
not be robbed by means of inflation. An interesting original draft by
the Founders would of allowed for "bills of credit", or paper
money but that was struck out. It seems that during the Revolutionary
War, when paper money had been issued, a promise to back the notes for
gold or silver was a "no confidence" disaster, causing
counterfeiting by the British and other forms of fraud.
The
end result were notes of no value, plummeting to less than a penny per
dollar. Sound familiar? This is why the Founding Fathers decided to mint
only gold and silver coins as "money." They provided for a
U.S. Mint where silver dollars were coined along with gold coins
beginning in 1794.
"
The people of the states empower the Congress to coin money and regulate
the value thereof and also of foreign coins."
From Article I.8.5
This
provision in the U.S. Constitution gave Congress the Right to produce a
national coin, set the weight, fineness, and value. Also, Congress could
specify the value of a foreign coin in terms of the national coin of the
United States.
"
No state shall ...coin money; emit bills of credit; or make anything but
gold and silver coin a tender in payment of debts."
From Article I.10.1
It
is clear from this provision that the State's could not create their own
coin nor could they make anything but the gold and silver coins issued
by Congress as legal tender for the payments of debt. This
is a Constitutionally mandated gold standard.
No
further paper money was issued by the U. S. Government for over eighty
years. The Founders did allow, however, private banks to act as
depositories for the United States and to collect taxes. People were
issued redeemable bank notes which circulated as currency. Alexander
Hamilton was initially responsible for the "National Banking
System". Unfortunately, he realized his error in promoting this
type of banking too late, and by the end of the Civil War there were
thousands of banks issuing thousands of different kinds of bank notes.
In
1862, during the "War for Southern Independence", Lincoln
radically debased the currency by having millions of
"greenbacks" printed so he could pay for the "trappings
of combat" needed for his "sacking of the South". (see
death penalty above)
In
1872, Supreme Court Justice Stephen Field, aware of the rages of
inflation, attempted to block an unconstitutional overextension of
powers by the Bank of the United States. He wrote:
“The
arguments in favor of the constitutionality of legal tender paper
currency tend directly to break down the barriers which separate a
government of limited powers from a government resting in the
unrestrained will of Congress. Those limitations must be preserved, or
our government will inevitably drift from the system established by our
Fathers into a vast, centralized, and consolidated government.”
Drift,
it did, and is now moored on the precipice of the economic abyss.
In
1878, in a rare state of clarity, Congress began to redeem
"greenbacks" into gold which put the United States back on the
gold standard until 1933.
It
was well known amongst intelligent politicians, (who have, apparently,
remained in the minority), that the gold standard protected citizens
against the controlling tendencies of the government by offering an
absolute hedge against the depreciation or devaluation of the currency.
Gold provided an agent of maintenance and liquidity within and beyond
national borders. Above all, it raised a mighty barrier against
authoritarian interferences through the manipulation of the economic
markets. Within the constraints imposed by the gold standard, America's
economy remained relatively healthy until 1913.
On
December 23, 1913, the U.S. Congress passed the Federal Reserve Act,
placing control of this nation's money into the hands of a private
corporation. This corporation was made up entirely of bankers. Calling
itself the Federal Reserve, so as to seem official, it replaced the
national bank system. Treasury notes were recalled and Federal Reserve
notes were issued with a promise to redeem them in gold on demand. The
forces behind the Federal Reserve, (American and Western European
banking interests), remained tethered by the limits imposed by the gold
standard, but this would soon change.
In
1920, the 66th Congress passed the Independent Treasury Act.
In
1921, the United States Congress abolished the U.S. Treasury, and, as a
result, all of our country's bullion and all other instruments of value,
( i.e...moneys in trust funds and other special funds that had been kept
in U.S. Treasury offices and vaults), were systematically transferred to
the coffers of a private corporation!
From
1913, until 1933, under the authority of the U.S. Congress, the Federal
Reserve held control of all of our country's gold. They then proceeded
to loan us back our gold, at interest. We paid interest for the use of
our own gold! What's wrong with this picture? What could have incited
our Senators and Representatives to allow that to happen? In order to
keep up with the ever rising debt service, we borrowed more of our own
gold. We kept borrowing more and more of our own gold to pay more and
more interest, until all the gold was gone. At that point, the country
went bankrupt. Guess what happened next.
The
bankers foreclosed on America. I know what you're thinking. Me too.
On
March 9, 1933, the U.S. declared bankruptcy, as expressed in President
Franklin Delano Roosevelt's Executive Orders 6073, 6102, 6111, and 6260.
On
April 5th, 1933, one month after his inauguration, President Roosevelt
declared a National Emergency that made it unlawful for any citizen of
the United States to own gold, (see death penalty above), and
"unconstitutionally" ordered all gold coins, gold bullion, and
gold certificates to be turned into the Federal Reserve banks by May 1st
under the threat of imprisonment and fines. This was technically, a
national confiscation of gold and silver. This unlawful precedent
set by Roosevelt would eventually lead us to the catastrophic situation
we find ourselves in today.
Our
bankrupt nation went into receivership and was reorganized in favor of
it's creditor and new owners, a private corporation of international
bankers. (Since 1933, what is called the "United States
Government" has been a privately owned corporation, and the
property of the Federal Reserve / International Monetary Fund.)
Without
a word of truth to the American people, all our good faith and credit
was pledged as the surety for the debt by the same slime ball
Congressmen who created the mechanism that allowed it to occur.
Those
Congressmen, knew such "De Facto Transitions" were unlawful
and unauthorized, but were mysteriously coerced into sanctioning,
implementing, and enforcing the complete debauchment of our monetary
system, and the resulting changes in all aspects of government, society,
and industry in the United States of America.
From
the onset of the Federal Reserve, fractional reserve bankers set out to
win the war of misinformation. They did this, in part, by attempting to
advance the pseudo tenets of Keynesianism, monetarism, and supply-side
economics.
John
Maynard Keynes, although a great friend of the bankers, was probably the
most heinous influence on freedom, liberty, and the free market in the
20th century. He was a Fabian socialist and a Globalist, (is that
redundant?), who provided an intellectual cover for inflationism. He is
best known for authoring bogus economic theories, undermining Western
values and philosophy, and providing a floor plan whereby the banksters
could more easily deceive the people. It was Keynes who coined the
phrase, “barbarous relic” in reference to gold. It was Keynes who
desecrated the U.S. Constitution with almost every breath.
During
the first half of the 20th century, each of four world leaders did the
exact same thing within ninety days of their ascension to power. Each
made it illegal for the citizens of their respective countries to own
gold. Those leaders were: Mao, Stalin, Hitler, and Franklin D.
Roosevelt. All four were acutely aware of the restrictions that a gold
standard imposed on their abilities to wage war.
The
bankers hate gold as money for the same reason. Gold as money acts as a
barrier to the expansion of credit money. By pandering the lure of
unlimited credit, the banksters went about recruiting politicians
through out the world. The opportunity to wage war on borrowed money
turned out to be irresistible to Empire. Wars have always been very
important to the banking cartels. They are very expensive. Time and time
again, through loans to governments, the cartels have provided the
funding for great conflicts. Imagine, being able to go to war with
unlimited funds. Better yet, imagine the inability to go to war because
of the lack of unlimited funds. The temptation extended to the power
mongers was too great. The credit was made available with a single
catch. The gist of the pitch went something like this:
"Sure
we'll loan you all the money you want, on the condition that you enact
laws making all the citizens of your individual countries responsible
for the interest payments, through taxation"
One
by one the leaders of every government on earth sold out, and agreed to
demonetize gold, thereby allowing the continued power grab of the
banking cartels through the issuance debt based currency. The result has
been the methodical fleecing of the general population through the
debasing of the dollar by 94%.
On
May 22nd, 1933, Congress enacted a law, against Constitutional mandate,
declaring all coin and currencies then in circulation to be legal
tender, dollar for dollar, as if they were gold. The President was
unconstitutionally empowered to reduce the gold content to the dollar up
to 50 percent. (see death penalty above)
On
June 5th, 1933, Congress stabbed the gold standard out of existence by
enacting a joint resolution (48 Stat. 112), that all gold clauses in
contracts were outlawed and no one could legally demand gold in payment
for any obligation due to him.
On
January 30th, 1934, the Gold Reserve Act was passed, giving the Federal
Reserve title to all the gold which had been collected. This act also
changed the value/price of gold from $20.67 per ounce to $35 per ounce,
which meant that all of the silver certificates the people had recently
received for their gold now were worth 40 percent less.
On
January 31st, 1934, after President Roosevelt fixed the dollar at 15 and
5/21 grains standard to gold. Russia and the central banks of Europe
were very excited and began buying up gold in huge quantities. This
planned redistribution of our country's wealth was one of the most
important objectives of the Globalist's agenda. Thus a dual monetary
system began which offered the gold standard for foreigners and Federal
Reserve notes for Americans. (see death penalty above)
Between
1934 to 1963 all Federal Reserve notes issued had a promised to pay, or
to be redeemed in "lawful money." Over a short period of
time the wording on the Federal Reserve notes began to change until
there was no redemption in silver promised. This was done slowly enough
that the people didn't see it coming. (see death penalty above)
On
November 2nd, 1963, new Federal Reserve notes with no promise to pay in
"lawful money" was released. No guarantees, no value. (see
death penalty above)
In
1965 silver in coins were reduced to 40 percent by President Lyndon
Johnson's authorization. (see death penalty above)
President
Lyndon Johnson issued a proclamation on June 24, 1968, that all Federal
Reserve Silver Certificates were merely fiat legal tender and could not
be redeemed in silver. (see death penalty above)
On
December 31, 1970, President Richard Nixon signed into law an amendment
to the Bank Holding Company Act, which, among other things, authorized
the treasury to totally debase coins to a worthless value in non
precious metal. (see death penalty above)
"Single
acts of tyranny may be ascribed to the accidental opinion of a
day. But a series of oppressions, begun at a distinguished period,
and pursued unalterably through every change of ministers, too plainly
proves a deliberate systematic plan of reducing us to slavery." -
Thomas Jefferson
Since
the seventies, the unfettered issuance of debt money has continued to
debase our currency more rapidly than ever before. In the last three
years, the debasement has accelerated exponentially.
"The
abandonment of the gold standard made it possible for the welfare
statists (government bureaucrats) to use the banking system as an
unlimited expansion of credit. In the absence of the gold standard,
there is no way to protect savings from confiscation through
inflation... Deficit spending is simply a scheme for the
"hidden" confiscation of wealth. Gold stands in the way of
this insidious process." - Alan Greenspan
The
world governments continue to babble that tired Keynesian rhetoric
insisting that gold and silver have become obsolete, relics of the past.
Yet in the 4th Quarter of 2003 global gold and silver demand was the
highest on record, and, some of the world's largest investors are
presently taking major positions in precious metals.
The
cartel wants economic growth, lots of borrowers, and lots of
opportunities to lend newly created funny money at interest. You can't
blame them for wanting that. If I could print up all the funny money I
wanted and could then lend it out at interest, I'd be happy too. That
is, I would be happy to lend it if I didn't have a soul. The ravages of
inflation have heretofore been thoroughly exposed and the results are
blatantly apparent in our inability to successfully engineer our lives
without debt. Fractional reserve banking has provided for the theft of
the life blood of our nation.
Compounding
the problem is the fact that the world is no longer capable of
sustaining economic expansion. We are beginning to witness emerging
nations, like China and India sucking up natural resources at a rate
that is way past rechargeable. We are entering a period of civilization
where the keyword is sustainability, not growth.
The
debasement of our currency continues with abandon. The purchasing power
of the dollar is quickly eroding. It is down 30% in the last three
years. Conversely, the value of gold is up 30% in the last three years.
Because the dollar is the reserve currency of world, every commodity,
from rice to timber, from oil to precious metals, will continue to rise,
priced in dollars.
The
U.S.A. is currently breaking all records for the longest period of time
that a nation's economy has endured after abandoning the gold standard.
Our country has been foreclosed on in the past, and its just about to be
foreclosed on again. It's just a matter of time. The "endgame"
is near.
"
I believe that banking institutions are more dangerous to our liberties
than standing armies . . . If the American people ever allow private
banks to control the issue of their currency, first by inflation, then
by deflation, the banks and corporations that will grow up around [the
banks] . . . will deprive the people of all property until their
children wake-up homeless on the continent their fathers conquered . . .
The issuing power should be taken from the banks and restored to the
people, to whom it properly belongs." -- Thomas Jefferson -- The
Debate Over The Re Charter Of The Bank Bill, (1809)
The
last thing that the powers that are engineering the devaluation of the
dollar want to happen is for the world to wake up to the fact that
precious metals represent un-inflatable money. Both gold and silver are
rising in price. This rise is currently fueled mostly by the dollar's
demise. When the resulting "demand panic" kicks in, and it
will very soon, the value of precious metals will "go
ballistic." Oil is already being affected by "demand
panic." It's price is rising in all currencies, not just the
dollar.
It
is my view, (and one that is shared by a great many others), that the
failure of our current monetary system is eminent. The purpose of this
examination has been to "wake you up", and make you aware of
the facts that support my take on things. Hopefully it has increased
your respect for the intrinsic value of precious metals. From an
economic standpoint, gold and silver will lend heartily to our
salvation. Gold and silver will soon regain their positions as the
anchors of an honest monetary system. The market will demand it, and the
"powers that be" will have no choice but to let the market
have its way.
The
presence of gold and silver in your portfolio will insure that you will
emerge from the abyss with your capital intact. There is still time for
you to reallocate your a portion of your equity into the commodity
sector, including gold and silver bullion, and gold and silver mining
stocks. This move could well provide you with an unequaled measure of
security. The gold standard is part of our Constitutional legacy. The
subjugation of the Constitution is the root of all economic evils. If
enough of us get together on this, we might be able to "Right the
Republic". Very soon, as early as next year, a lot of people will
be glad they held gold and silver.
It’s
not what you don't know that will screw you up, it's what you know that
is wrong. The spin you hear from the mainstream media is intended to
mislead you. Open your eyes and face the future. If you leave your head
in the sand and ignore it, you are only leaving your butt exposed for
the world to kick. This all may sound like gloom and doom, but when you
get a handle on what is going to happen, you will have a future filled
with opportunity. Fortune favors the Informed.
© 2004 Kenneth Parsons,
aka Johnny Silver Bear
Archives
Kenneth
Parsons, aka Johnny Silver Bear, is an IT professional in Garland,
Texas and the President of Silver Bear Communications, Inc. Mr.
Parsons has been involved in the advertising and promotion industry
for over twenty-five years. He is the editor of the Silver
Bear Cafe and, as such, is responsible for shaping the content of
"The Bear." Mr. Parsons has served as CEO for Fiberscape
Communications, Inc., a web site development / hosting and streaming
multi-media company in Richardson, Texas since 1997. He is a
Jeffersonian and a passionate supporter of the U.S. Constitution. He
is also an outspoken advocate of gold money and equal tax rates. You
can contact Mr. Parsons with questions or comments via email.
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