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Decline of the US Dollar
How the Dollar Came to Be
The Continental Congress of the United States issued Continental Currency in 1775.
The United States Dollar was at one point was the ultimate in terms of currency as basically the world was a customer of the United States either through being a borrower of funds or a customer for US goods and services. The world was flooded with consumer goods such as Mars M&M's chocolates, Hormel Spam luncheon meat and Tide laundry soap. The same went for textiles, clothing, appliances, and machineries. The United States was a manufacturing and financial powerhouse.
The Dollar back in the day was real money as the founding fathers intended it to be. Quarters were actually made of real silver and paper bills were gold certificates and not legal tender. As Article 1 Section 10 of the United States Constitution 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."
The problems facing the nation today all started with the creation of the Federal Reserve in 1913. The Federal Reserve is not a government bank as thought by many but a private bank which is owned by the elite. Though the propaganda was that the Fed would save Americans from economic crashes, it has not done so. It failed to do so during the Great Depression as it continues to fail today. The value of the Dollar has shrunk by more than ninety percent ever since the Fed came into existence.
The real money was slowly converted into fiat money which is essentially fake money. This process was completed when President Nixon completed the abolition of the gold standard. The downside of the old gold and silver backed money was that the expansion of the money supply was limited to the amount of gold or silver in the treasury. This in turn was also its safety net as one cannot simply print money out of thin air as counterfeiters do. What is being done today by the Fed is no more than legalized counterfeiting. They simply make money out of thin air.
The money made by the Fed is loaned to the government at interest. The government secures these loans by printing government bonds and exchanging these for Federal Reserve notes. One of the greatest American Inventors Thomas Edison was even quoted as saying "It is absurd to say our country can issue $30 million in bonds and not $30 million in currency. Both are promises to pay, but one promise fattens the usurers and the other helps the people."
What would make matters worse is that the Fed has also propagated the fractional reserve policy where a single Dollar deposited in banks would create up to nine Dollars. This further worsens the problem of inflation as this increases the money supply. Also, if you may remember money loaned from the banks involves the payment of interest and the money to pay for this interest also comes from the Fed again and this new money also has interest attached to it.
In the program Fox Business on Oct 14 2008 Ron Paul has stated that he does not believe that wealth could be created out of a printed press. He could not have been more spot on. Money as it was intended to be ever since people started using them was a store of value. Money represents wealth that is in the country. This is comprised of natural resources, real estate, goods and services. The problem now is that money is being created out of nothing and more and more money is printed out. Each new Dollar printed out steals money from existing Dollars and debases the currency. This is devaluation is commonly known as inflation.
This problem is further compounded by the fact that America is slowly losing its manufacturing capabilities. If you would look at stuff that you buy in the mall, most of it is made in China or some Third World country. Millions of Americans have lost their jobs because companies have closed down due to competition or have went offshore to save on labor costs. With less value being created in the economy due to the weakening of the manufacturing sector where would the real value to back up the currency come from?
Aside from The Fed destroying the Dollar through its monetary policies and practices, there is also talk of this condition being scientifically created to help usher to North American Union. The scientifically created economic collapse we feel today was carefully contrived to create conditions that would swing public opinion to support a new currency called the Amero.
The Dollar is heading for destruction if this keeps up. What can save the Dollar is to return to a metallic currency where money is backed up by something and not by nothing. Silver would be a good candidate as silver is abundant in the United States and cannot be as easily manipulated by the banks. Another is to abolish the Fed. The country survived without the Fed and it is better off without it. The Fed is just a vehicle for the elite to steal from the poor and give to the rich. We should do as President Andrew Jackson did and kill "The Bank." Lastly, we should bring jobs and manufacturing back to the country. What makes a strong currency is the value produced by the economy and not the opinion of Alan Greenspan or Ben Bernanke.
The new design for the $100 bill.
Monetary System Poll
Which monetary system do you prefer?
Devaluation of the Dollar from 1913 to 2009
Cumulative Inflation Since 1913
End the Fed
The American Dream Film Part 1
The American Dream Film Part 2
© 2016 Jan Michael Ong