“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
Truer words are rarely spoken, as many people believe they are well versed in the way coin, credit, debt, and economics actually work. Unfortunately, most of us are more ignorant about the way today’s monetary system actually functions. Much like the legal system takes educated lawyers and judges, it takes specialists like financial analysts, brokers, bankers and so on that are typically only available to the elite class to have much mental acumen and edge on such systems.
Our money was once backed by gold and silver, a currency that could be earned, spend, and exchanged freely at face value. It was a system that almost everyone could easily understand. You could take $5 in silver certificates to a bank and receive $5 in silver in return. Simple, right?
This is because the gold standard system is one based on Natural Law, which doesn’t recognize debt-based monetary systems that take control out of the individuals’ hands.
Was The Transition Necessary? What Happened and Why?
So what happened? In short, what happened is that the government made a decision to take us off the gold standard that had been in use since 1879 (save for the gold embargo during WWI). By 1931, Britain had already dropped the gold standard in hopes to stave off an economic downturn by falsely inflating the money supply.
Following suit with Britain after US citizens began hoarding gold during the Great Depression. The US fell into suit with the Keynesian economic theory, and in 1933 President Roosevelt put us on a fiat monetary system in efforts to stabilize inflation of the country’s ‘money supply.
Once the joint resolution nullifying all creditor’s ability to demand gold payments, the goal was to prevent consumers in ‘hoarder’ mode from preventing others from lacking confidence in the US economy. Banks could no longer export gold or pay it out to certificate holders—save for a maximum of $35 per ounce until 1971—after the fixed rate was no longer acknowledged. While some normalcy has returned to people investing in gold and silver openly, many during these decades were left practically empty-handed during the transition pre to post-fiat system guidelines.
The Role of Gold, Silver & Natural Law vs the Fiat Monetary System
The simple fact is that gold and silver have historically supported monetary systems because they maintain their value, and in most cases rise in worth. Money should work this way when operated by Natural Law, and they tend to ultimately favor individuals and enterprises that govern their actions and investments in accordance with such principles.
Consider the value today of an old $20 gold piece, which can be worth $2,000 or more. Then consider that printed money can be worth $5, but due to the government’s propensity to run expansive open-ended deficits that aren’t actually based on real wealth, that $5 paper can become worth 5 cents in actual buying power—literally overnight.
When one understands the connection between money, labor, and free will, it isn’t hard to see how much control the government has over us as individuals and our financial prosperity—something many could argue is comparable to enslavement. Fiat systems support theft, take away individual liberties, and in no way support Natural Law.
A system based on gold, silver, and other alternate systems like cryptocurrency platforms keeps the power in the consumer’s hands, taking the government’s power to control its worth away, so it cannot be ‘stolen’ through false value manipulation. Ultimately systems based upon Natural Law support and value the individual’s right to control their earnings with an eye towards their best interest.