April 1, 2010

What is a Dollar?

The U.S dollar is whatever the U.S. government says it is. Until 1933 it was one twentieth of a troy ounce of gold, or a banknote redeemable on demand for that amount of gold. In 1933 the dollar was devalued. It became one thirty-fifth of an ounce of gold, but banknotes were redeemable in gold only to foreign banks, not to Americans. This amounted to confiscation (theft) of 43% of the gold that the American people owned by virtue of holding dollars.

By 1971 the American gold reserves were being rapidly exhausted by foreign banks redeeming dollars. In 1971 the Dollar was re-defined as one seventieth of an ounce of gold. However, foreign demands for redemption continued apace, so within days the dollar was declared no longer redeemable in gold. This completed the confiscation (legalized theft) of all the monetary gold (OUR Gold) in the country.

So now the government defines a dollar as a dollar. It is a worthless, but legal dollar. A federal (legal tender) law requires people to accept it in payment, as if it were real money.


2 Responses to “WHAT IS A DOLLAR?”

  1. David Jahntz Says:

    So let me get this straight — I already knew the Federal Reserve was created in 1913, but it only took 20 years for it to take complete control over the value of our currency?! Maybe the words, “In God We Trust” should be replaced with “In the Federal Reserve We Trust.” FDR was right about FEAR allowing people to be taken advantage of because of the Depression (that the Federal Reserve created in the first place). Now FEAR has allowed the majority of Americans to sit back and watch the Homeland Security Department overwhelm our lives. Heaven help us if we get anymore afraid!

    • glennodell Says:

      Actually, it only took a few months for the Fed to start growing the money supply. First to finance Britain’s entry into World War 1 in 1914, then to finance our own (formal) entry into WW1 in 1918.

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