
By Johnny Liberty
“All the perplexities, confusion and distress
in America arise not from defects
in their Constitution or Confederation,
nor from want of honor or virtue,
so much as downright ignorance of the
nature of coin, credit and circulation.”
~ John Adams
We the People are crazy about “money”. Whether you have a lot or a little, work hard, live off trust funds or collect welfare, inherit or win the lottery, there are intrinsic survival, fear and success issues linked with “money”, its acquisition and spending, that we rarely take the time to step back from the insanity, and ask the hard questions. Considering its importance, this attitude is crazy.
What is real “money”? Who controls money? How is money made? Where does money come from? How does the economic system really work? Why are so many people and businesses in America going bankrupt?
Is the accumulation of “money” the sole purpose for living? Is money really worth working and dying for, and for some, stealing or killing for? Why is money so glorified as an object of one’s attention and one’s affection? Is there a better alternative? How does my relationship with money reflect my values? How can I serve the greater community and myself, as well as work doing what I love?
“When it is a question of money, everyone is of the same religion” ~ Voltaire
Short History of Money
Until 1500 BC, all “money” was alive—cattle, lambs, goats or pigs. The first bankers financed great trading ships laden with cattle on long sea voyages, steering from port to port. While onboard on long journeys, pregnant cattle had offspring, calves or “kind” which was agreed by both parties that they belonged to the banker.
This was when the initial idea of “interest” on a loan first arose. However, in the long term, the concept of “interest” depletes the life-support equity of both depositors and borrowers, ultimately transferring equity and control to the banker.
In their sophisticated ancient civilization, the Phoenicians invented metal “money” in the shape of a pair of bullhorns. That was because metal coins were simpler to transport than steering, housing and feeding the actual cattle, coins gained popular usage as a commodity. Eventually coins were minted with precious metals like gold or silver which historically retained a stable value relative to purchasing power over time. Did you know that an ounce of gold has the same relative buying power today as it did in ancient Greece?
Money was not originally an invention of the state, but of private bankers and merchants.“Certain commodities become money quite naturally, as the result of economic relationships…independent of the power of the state…Though many different commodities have been used as money over the centuries,…gold and silver have emerged as money in the free competition of the market.”
Money Defined
> MONEY ($) – A tangible metallic substance with intrinsic and stable-store of value, distinguished from paper currency, checks and drafts.
> MONEY (Ø) – in the ordinary connotation it means coins and paper currency used as a circulating medium of exchange, not including notes, bonds, evidences of debt, or other private property or real estate.
True Source of Wealth
The true source of wealth of a nation lies with the skills of people and what they are capable of producing. Money itself is not a true measure of wealth, unless it has a tangible value as a commodity. However, it is an essential tool for trade in a free enterprise society.
Healthy economies are created from the production of goods and services, the ability to freely exchange those in the market at a price people are willing and able to pay. In indigenous societies, the wealthiest individuals with the most prestige were the ones who had the most to give away.
True wealth is in land and tangible assets. Wealth consists of tools, materials, equipment, and profit-generating assets. Wealth is bought with money. Unfortunately, wealth can be acquired by force, theft, legal plunder, through sovereign grants and deeds, or by other unscrupulous, dishonest and unethical means.
True wealth is also in intangible states of being such as health, serenity, clarity, creativity, harmony, honesty, kindness, compassion and consequent contentment.
“[It is the duty of Congress] to coin Money, regulate the Value thereof,
and of foreign Coin, and fix the Standard of Weights and Measures…”
~ U.S. Constitution [1:8:5]
“No State shall…make any Thing but gold and silver Coin as Tender in Payment of Debts…”
~ U.S. Constitution [1:10:1]
A Dollar is a Measure of Weight By Law
How can we define a “dollar ($)”? In the united states of America, a dollar is a measure of weight defined by the Coinage Act of 1792, which issued the first gold coin, with legislative amendments, that are still in effect today.
A “dollar ($)” by definition specifies a certain quantity of tangible gold or silver. Furthermore, the relative value of silver is constitutionally proportionate to gold. In 1995, a dollar is still 371.25 grains of silver in a 480 grain coin which is equal to one ounce.
ONE DOLLAR = 1/20th OUNCE OF GOLD = .999 TROY OUNCE OF SILVER
As originally defined, a dollar equals 1/20th of an ounce of gold “money ($)” until it was “statutorily” devalued by the Gold Reserve Act of 1934 to 1/35th of an ounce of .999 pure silver “money ($)”.
The Founders decided only gold and silver were to be coined as money by the U.S. Constitution – that only gold or silver coins are considered real “money ($)” in America.
Wisely, they chose this path having seen how monarchs had debauched money supplies in Europe by printing paper money substitutes. The founders chose to avoid making the same mistake.
REAL MONEY = GOLD/SILVER
The Founders delegated the power to coin real “money ($)” to the U.S. Congress, and no other entity, foreign or domestic. Furthermore, The U.S. Constitution gave no lawful or constitutional authority to the U.S. Congress to delegate private banking via legislation to a private corporation or the Federal Reserve Bank (FRB) that was supposedly authorized much later by the “statutory” Federal Reserve Act of 1913.
American People Were Our Own Bankers
Until 1913, We the People were our own bankers, creating wealth directly by mining the Earth and producing goods and services. We mined for gold and silver and brought it to the assay offices of the U.S. government to mint into coinage. In exchange, the U.S. government kept 10% of the gold and silver as a constitutional excise tax to cover the cost of minting.
U.S. Gold Certificates (1863-1934) were issued, redeemable and payable to the bearer on demand for gold coin. U.S. Silver Certificates (1886-1963) were issued, redeemable and payable to the bearer on demand for silver coin. Both were redeemable at local banks for real “money ($)” stored in the vault.
Even Federal Reserve Notes (FRNs) were redeemable in lawful “money ($)” at the U.S. Department of the Treasury Federal Reserve Bank (1934-1963).
Until 1934, a twenty-dollar gold coin was minted in gold, a one-dollar silver coin was minted in silver, then both were spent into circulation. Before 1968, dimes and quarters were still coined in silver and spent into circulation.
Today, U.S. dollars, half-dollars, quarters, dimes, nickels and pennies are still minted and spent into circulation although they have no precious gold or silver left in them, while “paper money substitutes (Ø)” and paper currency (except U.S. Notes) are “loaned” into circulation by the U.S. government.
By law, “money ($)“ is either gold or silver coins, or currency backed by gold and silver certified deposits in the U.S. Treasury, payable to the bearer on demand, or interest-free “United States Notes” spent into circulation by the federal U.S. government, for example, JFK’s $2 bill was spent into circulation interest-free.
“The importance of an honest, stable, gold money supply is to ensure that relative scarcity, demand and production efficiency of goods and services are accurately represented through their actual market prices. Prices are information.” ~ Boston T. Party
References:
- Wikipedia | John Adams.
- Wikipedia | Voltaire.
- Wikiquote | Critical Path by R. Buckminster Fuller (St. Martins Press, New York, p. 73-74); Amazon
- Ibid.
- Court Listener | Lane v. Railey, 133 S.W. 2d 74, 79, 81 280 Ky. 319, (“money” does not embrace notes, bonds, evidences of debt, or other personal or real estate http://section520.org/money.html
- Heritage | U.S. Constitution [1:8:5]. To coin money…
- Heritage | U.S. Constitution [1:10:1]. No State shall make…
- Wikipedia | Coinage Act of 1792; Wikipedia | Coinage Age of 1834; Wikipedia | Coinage Act of 1965; Wikipedia | Gold Certificates; “Dollar is a weight of gold or silver:; Jeff Ganaposki, Patriot Primer #2, (Living Word, pp.108); MISES | What Has the Government Done to Our Money? by Murray N. Rothbard: ; Coinact | An Act Establishing and Regulating the Mint.
- Wikipedia | Kenneth W. Royce; Javelin Press | Goodbye April 15th by Boston T. Party (Javelin Press, Austin, Texas, 1992, p.3/10); Wikipedia | Gold Reserve Act of 1934; What Was the Gold Reserve Act?; Investopedia | Federal Reserve History.
- Ibid.
- Ibid.
- Ibid.
Source: Sovereign’s Handbook by Johnny Liberty (30th Anniversary Edition), Volume 2 of 3, p. 13 – 16
ORDER YOUR LIBERTY BOOKS TODAY!
Sovereign’s Handbook by Johnny Liberty
(30th Anniversary Edition)
(3-Volume Printed, Bound Book or PDF)
A three-volume, 750+ page tome with an extensive update of the renowned underground classic ~ the Global Sovereign’s Handbook. Still after all these years, this is the most comprehensive book on sovereignty, economics, law, power structures and history ever written. Served as the primary research behind the best-selling Global One Audio Course.Available Now!
$99.95 ~ THREE-VOLUME PRINT SERIES
$33.33 ~ THREE-VOLUME EBOOK
Dawning of the Corona Age: Navigating the Pandemic by Johnny Freedom
(3rd Edition)
(Printed, Bound Book or PDF)
This comprehensive book, goes far beyond the immediate impact of the “pandemic”, but, along with the reader, imagines how our human world may be altered, both positively and negatively, long into an uncertain future. Available Now!
$25.00 ~ PRINT BOOK
$10.00 ~ EBOOK
