Wednesday, October 9, 2013

Money or Gold?

CHA-ching! money everybody wants it, it makes the world go round. I think gravity does that. But let's look at this thing called money.
The definition of money is, any object or record that is generally accepted as payment for goods and services and repayment of debts in a given socio-economic context or country.
What we have now is called fiat currency. Fiat money ,like any check or note of debt, is without intrinsic use value as a physical commodity.
 Thats what we have in America right now," Federal Reserve Notes". They have no intrinsic use value. Another word for note is "debt".
 The Fed( Federal Reserve) is not a Federal agency. It's a private bank. In the December 23 ,1913, the Federal Reserve Act was put in place by President Woodrow Wilson. President Wilson was quoted as saying, "i have unwittingly ruined my country". Now in the early in the last century, there was silver and gold certificates. I have a silver certificate from 1957, that paid to the issuer , one dollar of silver.In 1972, Richard Millhouse Nixon took the U.S. off the gold standard, and claimed"We are all Keynesians now.John Mayard Keynes, was a economist ,who believed that government should control the economy.   Now with fiat money, the Federal Reserve has been working overtime printing money. Ok,whats wrong about printing money? I'm glad you asked that question.There's a little thing called inflation.Yes, inflation.Inflation is too much money in the system,which the known effects is higher prices of goods and services in the economy And less purchasing power for the dollar. It is my sincere hope that some people, who read this blog do have some gold or silver coins in their possession. There was a t-shirt going through the black neighborhoods a few years ago, that stated, "Gold, the original currency of kings".

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