“All the embarrassment, confusion and pain of the United States arise from a clear ignorance of the essence, credit and circulation of coins, not the desire of honor or virtue, not the defects of the constitution or alliance.”
– letter On August 25, 1787, from John Adams to Thomas Jefferson
Illegal money
“Let’s tear the waste from the big country budget at a time.” I wrote President Trump’s remarks followed the instructions to stop penny ministers to the Treasury Secretary.
Trump’s theoretical basis is more expensive for penny to persecute one penny than the value of the penny. In fact, there is little US mint cost 4 cents 1 Penny produces.
This reality provides deep insights into our work after the Federal Reserve signed by President Woodrow Wilson on December 23, 1913. In short, the federal government is wearing gloves with the Fed. Destroyed the value of money. This includes the money you work for a lifetime, saving and investing.
How bad was money destruction? Usage of labor statistics Inflation calculatorThe value of the US dollar has declined 97 % since 1913. In other words, the dollar was devalued to approximately $ 0.03.
Trump’s efforts to reduce government spending and waste are important. His attempt would have been made decades ago. But removing penny can hardly help to reduce waste and return sound to American citizens.
For nearly 150 years, US money was gold and silver. This was established by the US Constitution. limits Except for gold and silver paintings, everything is paid. Constitution location The power to make money in the hands of parliament.
Today’s dollar is a federal preparatory system. And the Federal Reserve Bank notes are legal bidding, but they are illegal under the Constitution. They are not gold or silver, and are not made by parliament.
The Federal Reserve Bank is also almost impossible for the average wage earner to provide a satisfying family. If a healthy money does not recover, this madness will worsen.
Pesos and dollars
To better understand what happened, let’s compare the trouble between the neighboring US and the south for the last 100 years.
The calls in the north and south of Rio Grande are not used to. A few generations before they were as trustworthy as the rooster call at dawn. Now they are crooked like the spine of politicians.
We know that we are holding onto the history book, but by honest and verifiable silver dollars and silver pesos.
One coin, Peace Dollar, is an American silver dollar in 1921. At the time of mint, one coin was the same as $ 1, and each dollar included 0.77344 Trojan with 0.77344 Troy. The other coin, 1922 UN Pesos, is Mexico. At the point of mint, one coin was the same as one pesos and each pesos contained 0.3856 trojan silver.
The exchange rate was really simple. Depending on the silver content, the two pesos are equal to $ 1.
Today, Peso and the dollar are just paper promises issued by the central bank of their own country. The value of pesos and dollars is derived from the perception of the international monetary market for the government’s steward position, military size, and the ability to pay for the debt of the international monetary market.
Currently, about 20.30 pesos is required to buy $ 1. As you can see, the Mexican government has been tired of managing currencies more than the US government for the past 100 years. The exchange rate went from 2 to 1 to 1 to 20 to 1.
More importantly, using silver as a measuring stick changes greatly for both the dollar and pesos.
Destruction
In the early 1920s, it took about $ 1.29 to buy Eun’s ons, and today it takes about $ 33.50 to buy ons. This means that silver is currently paying 2,496 % more than the early 1920s.
But in pesos, value destruction is completely disgraceful. In 1922, 2.58 pesos required 2.58 pesos to buy silver ons, and today, 680.05 pesos is required to buy 1 ounce. Surprisingly, in peso terms, silver is 26,258 % more expensive than in the early 1920s.
The US price inflation is cunning but much more cunning than Mexico. This provides some trust in the dollar with a preliminary currency of global finance.
However, since this century, Washington’s crazy spending, especially the corona virus, has been completely shifted from subtle price inflation to the first more widespread price inflation in 50 years.
Without doubt, pesos, dollars and almost all paper currencies will continue to be garbage by each government for the next few years. But in relation to other calls, the dollar’s garbage will be accelerated. This requires a huge dollar evaluation to return the dollar to the same exchange rate as the dollar.
Unfortunately, this is necessary for us to be competitive in international trade. If Trump’s goal is to return the manufacturing to the United States, this is the only way to do this. Import tariffs and powerful foreign governments will be buying in the United States so far.
Penny’s death and this means gold
Penny’s death -token can be a real problem. Why do you make something by loss? However, it is the result of reckless deficit spending for decades in Washington.
What happened is no different from the large -scale government spending of the Roman Empire, which has raised funds through the continuous currency eradication process (for example, over time, more and more basic metals are added and recalled).
In 54 AD, Dena Rius was 94 % silver. By 218 AD, it fell to 43 %silver. Then only 50 years later was less than 1 %.
Suddenly, the prospect of devaluation of the dollar is the reason why the central bank diversifies financial reserves into dollars and loads them into gold. For the same reason, you must also have physical gold.
As the dollar loses its value, the price of gold increases in dollar terms. Owning gold is a simple means that people can hire to preserve wealth.
At the same time, as Trump pursues a policy that weakens the dollar and returns the manufacturing and industry to the US coast, he may also try to reset the financial system on a harder foundation while adjusting debt.
“We will make profits for the assets of the US balance table for Americans.” Sayed Earlier this month, Scott Bessent Finance Minister.
It is still unclear what it actually means or how it runs. But one of the thoughts that had a lot of exposure was the idea of marking the gold that Washington owned at the market price. Another question is whether the gold in Port Knox actually exists. I have not been appreciated for more than 50 years.
According to the Treasury Financial statementsThe United States owns about 261.6 million trojan gold. The reserves are currently evaluated at a statutory fee of $ 42.22 per ouncil, which is a book value of $ 11 billion. The current price of gold is about $ 77.1 billion in the market of about $ 2,950 per ounce.
Certainly, adding $ 760 billion to the financial assets of the Treasury will be a good improvement. However, in the fiscal year of 2024, the US government $ 6.75. Therefore, this gold assets will be enough to fund the government for about six weeks.
What is the actual calculus here?
Is this an accounting special effect for buying government funds for six weeks? Or is there a financial system (attempt to expand debt with debt) by not evaluating the dollar for gold?
If that’s the latter, marking gold assets at gold market prices will not reduce it.
The price of gold should be more than the current market price in order to truly reset the financial system as the basis of gold, with US national debt of $ 36.5 trillion and the prohibited debt is $ 226 trillion. .
Therefore, the price of the product and service must also be adjusted.
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thank you,
Mn Gordon
For economic prism
Back from Penny’s death, this means gold is an economic prism.
