We live under such well-crafted illusions; the biggest is perhaps the one that isknown as the "Dollar". The hard-core illusion about the "Dollar" really began inearnest in 1933, when, in the depth of economic depression, FDR "revalued" gold.He artificially raised the price of gold from $20.67 to $35.00 per ounce, ofcourse gold wasn't his real focus with such revaluation, it was the "Dollar" andits connection to gold that was the focus of this scheme created to form anational peonage. In effect, FDR devalued the purchasing power of the "Dollar" byincreasing the value of gold as it was associated with the "Dollar".In reality, FDR didn't actually "raise" the price of gold; he lowered the value ofthe "dollar" by a whopping total of 41%. The price of gold had been increased, notby market forces, but by executive mandate, thus forcing the purchasing power ofthe "Dollar" down. At the time, money was gold and gold was money, but this wasthe first real break between real money and the U.S. Dollar. Of course, the goldin this country had been confiscated [in a breach of trust and violation ofcontract] by the same type of executive order given by FDR, all in an effort toimplement an eventual break between real money and government decreed legal tenderfiat money.By this one action, the Treasury was instructed to pay $14.33 more "Dollars" forthe same ounce of gold that just the day before was valued at $20.67 per ounce.Remember, in this country the "Dollar" was not money, it was redeemable for money,but it was not considered money. Gold was money and money was gold that was theessence of our monetary system. The reality behind this criminal action by FDR wasthat the people of this country were led to believe that FDR just increased theprice of gold, but in fact, in reality, he had, with a stroke of a pen,drastically lowered the purchase value of the "Dollar". Not only had he [thegovernment] confiscated the people's gold, but on top of it he also stole 41% oftheir purchasing power by devaluing the "Dollar". He did a lot more than that, butthat's for another commentary.The whole idea behind this action [I am sure if we pulled the curtain back farenough we would see the whole idea behind the Great Depression] was to depreciatethe purchase value of the "Paper Dollar", as it criminalized the ownership of realmoney [Gold] thus enforcing the use of a greatly devalued monetary unit called the"Dollar". It should be obvious that it is impossible to "cheapen" the value ofgold, so FDR, the government and the bankers, had to "cheapen" the "Dollar". Ineffect, if someone went to the grocery store the next day after this happened,they would be pulling out the same "Dollars", but even though they would see ahundred dollar bill in their hands, they would only be valued at 59% of what itwas the day before.Perhaps the most interesting thing is really what took place in the economy thenext day, nothing happened, everything looked and worked the same as it had theday before even though the "Dollar" had been drastically debased. The problem, ofcourse, was that this massive devaluation of the "Dollar" did not immediately showup in the economy, so when everyone when out to buy something the next day afterthe devaluation they bought goods and services that had the same pricing structureprior to the debasement of the currency. They were using money that had beendevalued by 41%, but at that point the prices of goods and services didn't reflectthe devaluation.So, in essence, a buyer of goods and services would get, let's say $100 worth ofgoods, but the seller of those goods would receive only 59% purchase value and itwas only until the seller of those goods and services used that devalued moneythat the chain of events would begin to take place as the debased value of those"Dollars" would begin to bid against the price of goods and services in theeconomy.
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The Official Well-Crafted Illusions of Money
The illusions of our money is perhaps on of the greatest illusions of all times. We look at the face value and all we see are "$" signs.
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| Upload Date: | 02/14/2009 |
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