And when money failed in the land of Egypt, and in the land of Canaan, all the Egyptians came unto Joseph, and said, Give us bread: for why should we die in thy presence? for the money faileth. Genesis 47:15
Congressman Ron Paul once said he was riding with President Reagan in Marine 1 when the President said Great Countries that abandon the Gold Standard never remain Great Countries very long. To my knowledge President Reagan never shared that opinion publicly.
After the American Revolutionary War began in 1775, the Continental Congress began issuing paper money known as Continental currency, or Continentals. Continental currency was denominated in dollars from 1/6 of a dollar to $80, including many odd denominations in between. During the Revolution, Congress issued $241,552,780 in Continental currency.
Continental currency depreciated badly during the war, giving rise to the famous phrase “not worth a continental.” George Washington once complained, “A wagon load of money will scarcely purchase a wagon load of provisions.”
The issues with the Continental Currency resulted in Article I, section 10, clause 1 of the Constitution which states:
“No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts, or grant any Title of Nobility.”
On March 14, 1900, the Gold Standard Act was passed with this provision:
…”the dollar consisting of twenty-five and eight-tenths grains (1.67 g) of gold nine-tenths fine, as established by section thirty-five hundred and eleven of the Revised Statutes of the United States, shall be the standard unit of value, and all forms of money issued or coined by the United States shall be maintained at a parity of value with this standard”…
Thus the United States moved to a gold standard, making both gold and silver the legal-tender coinage of the United States and guaranteeing the dollar could be converted to gold. By the way, 1.67 g is 0.0484 troy ounces. With gold at $1,200, multiply the troy ounces by $1,200 and you get $58.08. I believe gold is being manipulated by the derivates market. Like the dollar, the derivates or contracts are not backed by gold. I have explained before that it is like taking 10,000 ounces of gold and selling contracts on a million ounces of gold. It’s just paper and can be very risky. At any rate, if nothing had changed you could trade a dollar for $58.08 worth of gold.
President Richard Nixon ended international convertibility of the U.S. dollar to gold on August 15, 1971 although citizen’s right to do that ended long before.
This was meant to be a temporary measure with the gold price of the dollar, and the official rate of exchanges remaining constant. Revaluing currencies was the main purpose of this plan. No official revaluation or redemption occurred. The dollar subsequently floated. In December 1971, the “Smithsonian Agreement” was reached. In this agreement, the dollar was devalued from $35 per troy ounce of gold to $38. Other countries’ currencies appreciated. This was the official price of the dollar, and policies to maintain its value relative to other currencies. However, gold convertibility did not resume. In October 1973, the price was raised to $42.22. Once again, the devaluation was insufficient. Within two weeks of the second devaluation the dollar was left to float. The $42.22 par value was made official in September 1973, long after it had been abandoned in practice. In October 1976, the government officially changed the definition of the dollar; references to gold were removed from statutes. From this point, the international monetary system was made of pure fiat money. Fiat means inconvertible paper money made legal tender by a government decree.
German money became so worthless at one point people were burning it to stay warm. Zimbabwe was printing 500 trillion dollar bills that would not purchase a loaf of bread.
Christians and Jews know what Prime Minister Joseph did to prepare for the collapse of the economy 3,800 years ago in Egypt and most of the known world. He had seven years to prepare but I doubt that we have one year. Instead of laying up food for us, our government is spending like there is no tomorrow. How many times have I emphasized that our unfunded obligations amount to over $700,000 for every man, woman and child in America? Does your family of four have $2.8 million to pay your fair share? As I see it, there is no way out for America. Steps that must be taken, like drastically reducing the size of government, will NEVER be taken by Republicans or Democrats.
Make no mistake, you cannot grasp the severity of our problem by watching the smiley faces on TV news, reading the New York Times or listening to ostentatious speeches by our politicians from the President on down. You may have to WORK and do some research to get to the bottom of the problem. I could spoon feed you but many WILL NOT BELIEVE me. Not believing me is healthy. You should not believe anybody until you do your own due diligence. The Bible warns about False Christ’s.
There are steps you should take to prepare for any calamity. After hurricanes grocery store shelves empty in a hurry and there is always a shortage of water. If your drug store survives it will probably quickly run out of medications you need along with emergency medical supplies. Even though many Americans live from paycheck to paycheck, it would pay people to prepare now. If you don’t have a garden, plant one now. If you don’t have a spot, use a community garden if you can. Start storing anything you can’t live without including food and water. If you can’t afford five gallon water containers, use whatever you can find including used milk jugs. You can buy a gallon of water in grocery stores for a buck or less now. After a disaster you won’t be able to buy one at any price.
The Prophet Jeremiah warned Israel and was beaten and thrown in prison. Israel was carried off into captivity and ceased to be a country for 2,500 years. I know people often hate the messenger so politicians refuse to be the messenger. Hate me if you want to and call me a moron but don’t beg me for food after you refuse to lift a finger to prepare for yourself. I fear that a wagon load of dollars won’t buy a gallon of water or a handful of magic beans by the time these politicians from City Hall, the Courthouse and the Capitol Building to the White House and Congress are finished collapsing our economy. Now go protest the penalty for deflating the football or police brutality or just go back to sleep.